WGU C213 FINAL EXAM 2026
COMPREHENSIVE STUDY AND ANSWER GUIDE
◉ Executory Contract,. Answer: It is an exchange of promises about
the future.
◉ Expanded Accounting Equation. Answer: Assets = Liabilities +
Paid-in Capital + (Revenues - Expenses - Dividends)
◉ Expenses. Answer: The value of resources used in generating the
reported revenue.
◉ External Audit. Answer: audit conducted by external
(independent) qualified accountant(s)
◉ External Auditors. Answer: Independent CPAs who are retained
by organizations to perform audits of financial statements.
◉ Extraordinary Items. Answer: Gains and losses that result from
transactions that are both unusual in nature and infrequent in
occurrence
,◉ Facility Support Activities. Answer: Activities necessary to have a
facility in order to participate in the development and production of
products or services; activities are not related to any particular line
of products or services.
◉ Financial Accounting. Answer: The name given to accounting
information provided for and used by external users.
◉ Financial Accounting Standards Board (FASB). Answer: A private
body established and supported by the joint efforts of the U.S.
business community, financial analysts, and practicing accountants.
◉ Financial Capital Maintenance. Answer: The approach that
accountants typically use in computing a company's income is the
first option described above in which inflation is ignored and a
company is said to have income when its financial resources
increase.
◉ Financial Ratios. Answer: Relationships between financial
statement amounts
◉ Financial Statement Analysis. Answer: Areas in which additional
data must be gathered, including details of significant transactions,
market share information, competitors' plans, and customer
demand forecasts.
, ◉ Financial Statements. Answer: The three primary financial
information documents: the balance sheet, income statement, and
statement of cash flows.
◉ Financing Activities. Answer: Obtaining resources from owners
and providing them a return on their investment, and obtaining
resources from creditors and repaying those borrowings
◉ Financing Mix. Answer: The percentage of total financing
(liabilities plus equity) in each individual category.
◉ Fixed Asset Turnover. Answer: Sales divided by average fixed
assets and is interpreted as the number of dollars in sales generated
by each dollar of fixed assets.
◉ Fixed Costs. Answer: Costs that remain constant in total,
regardless of activity level, at least over a certain range of activity.
◉ GAAP Oval. Answer: A diagram that represents the flexibility a
manager has, within GAAP, to report one earnings number from
among many possibilities based on different methods and
assumptions.
COMPREHENSIVE STUDY AND ANSWER GUIDE
◉ Executory Contract,. Answer: It is an exchange of promises about
the future.
◉ Expanded Accounting Equation. Answer: Assets = Liabilities +
Paid-in Capital + (Revenues - Expenses - Dividends)
◉ Expenses. Answer: The value of resources used in generating the
reported revenue.
◉ External Audit. Answer: audit conducted by external
(independent) qualified accountant(s)
◉ External Auditors. Answer: Independent CPAs who are retained
by organizations to perform audits of financial statements.
◉ Extraordinary Items. Answer: Gains and losses that result from
transactions that are both unusual in nature and infrequent in
occurrence
,◉ Facility Support Activities. Answer: Activities necessary to have a
facility in order to participate in the development and production of
products or services; activities are not related to any particular line
of products or services.
◉ Financial Accounting. Answer: The name given to accounting
information provided for and used by external users.
◉ Financial Accounting Standards Board (FASB). Answer: A private
body established and supported by the joint efforts of the U.S.
business community, financial analysts, and practicing accountants.
◉ Financial Capital Maintenance. Answer: The approach that
accountants typically use in computing a company's income is the
first option described above in which inflation is ignored and a
company is said to have income when its financial resources
increase.
◉ Financial Ratios. Answer: Relationships between financial
statement amounts
◉ Financial Statement Analysis. Answer: Areas in which additional
data must be gathered, including details of significant transactions,
market share information, competitors' plans, and customer
demand forecasts.
, ◉ Financial Statements. Answer: The three primary financial
information documents: the balance sheet, income statement, and
statement of cash flows.
◉ Financing Activities. Answer: Obtaining resources from owners
and providing them a return on their investment, and obtaining
resources from creditors and repaying those borrowings
◉ Financing Mix. Answer: The percentage of total financing
(liabilities plus equity) in each individual category.
◉ Fixed Asset Turnover. Answer: Sales divided by average fixed
assets and is interpreted as the number of dollars in sales generated
by each dollar of fixed assets.
◉ Fixed Costs. Answer: Costs that remain constant in total,
regardless of activity level, at least over a certain range of activity.
◉ GAAP Oval. Answer: A diagram that represents the flexibility a
manager has, within GAAP, to report one earnings number from
among many possibilities based on different methods and
assumptions.
