Wgu c214 oa exam Study guides, Class notes & Summaries

Which will be larger: accrual taxes payable or accounting income tax expense - correct answer Accounting tax expense will be higher; actual taxes based on IRS rules will be lower Which financial ratios measure "efficiency"? - correct answer Asset turnover and Fixed Asset turnover Which ratio is the best measure of a firm's ability to pay bills? - correct answer Quick Ratio Which decision requires using subjective estimates? - correct answer Economic life of a new asset What is the...

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WGU C214 OA Financial Management. What is included in the Income Statement and NOT in the Statement of Cash Flows? - Depreciation Expense Computation of Net Income: A co. sold products in 2014 for $120k and collected $100k cash and remainder in 2015. Co. incurred $70k expenses for 2014 and paid $100k which included $30k for expenses incurred in 2013. What is net income for 2014? - Computation of Net Income (R-E=NI) $50,000 Net Income = $120k - $70k = $50k, or Revenues - Expenses Incurre...

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