WGU C213 Accounting for Decision Makers
UPDATED Exam Questions and CORRECT
Answers
The impact a business's activities have on it's overall financial performance - CORRECT
ANSWER What does accounting focus on?
Statement of cash flows - CORRECT ANSWER Which report summarizes cash collections
and cash expenditures from operating, investing, and financing activities over a period of time?
Employees - CORRECT ANSWER Which users would have a primary concern with an
organization's ability to provide healthcare benefits?
An increase in its comparability to other companies - CORRECT ANSWER Which benefit
does a corporation gain by following Generally Accepted Accounting Principals (GAAP)?
The FASB - CORRECT ANSWER Which body regulates a certified public accounting firm's
audit practices when the firm is auditing a large publicly traded company?
Information Technology - CORRECT ANSWER What has had the most significant impact on
accounting practices?
Debt, Ownership - CORRECT ANSWER What two items of information are revealed on the
balance sheet?
Owner's equity - CORRECT ANSWER Which term is defined as the residual interest in the
net assets of a company?
$350 million - CORRECT ANSWER A corporation has total liabilities of $300 million, total
owner's equity of $100 million, and current assets of $50 million. What is the value of the firm's
long-term assets?
, In 2014, a company provides services to a customer for which cash will be collected the next
year (2015) - CORRECT ANSWER Which situation should result in revenue recognition on
the income statement for the year ending 12/31/14 if the firm is using accrual-basis accounting?
Cash flows from financing activities - CORRECT ANSWER Which category on the
statement of cash flows summarizes cash receipts and payments to owners and creditors of the
company?
In the notes to the financial statements - CORRECT ANSWER Where would an investor find
a summary of a company's significant accounting policies?
The company has 1.5% more total liabilities that total assets - CORRECT ANSWER What
does it mean if a company has a debt ratio of 101.5%?
The company's financial statements fairly reflects its financial position - CORRECT
ANSWER Which assurances does an external audit report provide for its readers?
Continual decrease in sales - CORRECT ANSWER What is consistent with a continual
decline in gross profit if the firm's cost of goods sold remains the same?
Cash before interest and taxes of $11,000/cash paid for interest of $1,000 - CORRECT
ANSWER Which formula yields a cash time interest earned ratio of 11?
Notes payable expected to be paid in 18 months - CORRECT ANSWER Which form of debt
should be reported in the long-term liability category?
Dividend paid, operating expenses - CORRECT ANSWER Which two values affect the
measurement of net income?
UPDATED Exam Questions and CORRECT
Answers
The impact a business's activities have on it's overall financial performance - CORRECT
ANSWER What does accounting focus on?
Statement of cash flows - CORRECT ANSWER Which report summarizes cash collections
and cash expenditures from operating, investing, and financing activities over a period of time?
Employees - CORRECT ANSWER Which users would have a primary concern with an
organization's ability to provide healthcare benefits?
An increase in its comparability to other companies - CORRECT ANSWER Which benefit
does a corporation gain by following Generally Accepted Accounting Principals (GAAP)?
The FASB - CORRECT ANSWER Which body regulates a certified public accounting firm's
audit practices when the firm is auditing a large publicly traded company?
Information Technology - CORRECT ANSWER What has had the most significant impact on
accounting practices?
Debt, Ownership - CORRECT ANSWER What two items of information are revealed on the
balance sheet?
Owner's equity - CORRECT ANSWER Which term is defined as the residual interest in the
net assets of a company?
$350 million - CORRECT ANSWER A corporation has total liabilities of $300 million, total
owner's equity of $100 million, and current assets of $50 million. What is the value of the firm's
long-term assets?
, In 2014, a company provides services to a customer for which cash will be collected the next
year (2015) - CORRECT ANSWER Which situation should result in revenue recognition on
the income statement for the year ending 12/31/14 if the firm is using accrual-basis accounting?
Cash flows from financing activities - CORRECT ANSWER Which category on the
statement of cash flows summarizes cash receipts and payments to owners and creditors of the
company?
In the notes to the financial statements - CORRECT ANSWER Where would an investor find
a summary of a company's significant accounting policies?
The company has 1.5% more total liabilities that total assets - CORRECT ANSWER What
does it mean if a company has a debt ratio of 101.5%?
The company's financial statements fairly reflects its financial position - CORRECT
ANSWER Which assurances does an external audit report provide for its readers?
Continual decrease in sales - CORRECT ANSWER What is consistent with a continual
decline in gross profit if the firm's cost of goods sold remains the same?
Cash before interest and taxes of $11,000/cash paid for interest of $1,000 - CORRECT
ANSWER Which formula yields a cash time interest earned ratio of 11?
Notes payable expected to be paid in 18 months - CORRECT ANSWER Which form of debt
should be reported in the long-term liability category?
Dividend paid, operating expenses - CORRECT ANSWER Which two values affect the
measurement of net income?
