WGU C213 FINAL EXAM 2026 VERIFIED
QUESTIONS AND DETAILED SOLUTIONS
◉ Accounting Equation. Answer: Assets = Liabilities + Owners'
Equity
◉ Accounts Payable. Answer: The flip side of accounts receivable—
when one company sells on credit, creating for itself an account
receivable, the company on the other side of the transaction is
buying on credit, creating an account payable.
◉ Accounts Receivable. Answer: Amounts owed to a business by its
credit customers and are usually collected in cash within 10 to 60
days.
◉ Accrual Accounting. Answer: The process that accountants use in
adjusting raw transaction data into refined measures of a firm's
economic performance.
◉ Accumulated Depreciation. Answer: Reflects the wear and tear, or
depreciation, of these items since they were originally purchased.
◉ Accumulated Other Comprehensive Income. Answer: The grouped
together and reported changes which companies experience
,increases and decreases in equity each year because of the
movement of market prices or exchange rates
◉ Activity-based Costing (ABC). Answer: A method of attributing
overhead costs to products based on measurable factors that relate
to activities that create overhead costs.
◉ Additional Paid-in Capital. Answer: Invested by stockholders that
exceeds the par value of the issued shares.
◉ American Institute of Certified Public Accountants (AICPA).
Answer: The professional organization of certified public
accountants in the United States.
◉ Asset. Answer: Probable future economic benefit obtained or
controlled by a particular entity as a result of past transactions or
events.
◉ Asset Mix. Answer: The proportion of total assets in each asset
category, is determined to a large degree by the industry in which
the company operates.
◉ Asset Turnover. Answer: Sales divided by assets and is interpreted
as the number of dollars in sales generated by each dollar of assets.
, ◉ Assets. Answer: The firm's economic resources, formally defined
as "probable future economic benefits obtained or controlled by a
particular entity as a result of past transactions or events
◉ Assets-to-equity Ratio. Answer: Assets divided by equity and is
interpreted as the number of dollars of assets acquired for each
dollar invested by stockholders.
◉ Audit Committee. Answer: Members of a company's board of
directors who are responsible for dealing with the external and
internal auditors.
◉ Average Collection Period. Answer: Shows the average number of
days that elapse between sale and cash collection.
◉ Balance Sheet. Answer: A listing of an organization's assets and of
its liabilities at a certain time.
◉ Batch-level Activities. Answer: Activities that take place in order
to support a batch or production run, regardless of the size of the
batch.
◉ Book Value. Answer: The book value of an asset is the asset's cost
minus the asset's accumulated depreciation.
QUESTIONS AND DETAILED SOLUTIONS
◉ Accounting Equation. Answer: Assets = Liabilities + Owners'
Equity
◉ Accounts Payable. Answer: The flip side of accounts receivable—
when one company sells on credit, creating for itself an account
receivable, the company on the other side of the transaction is
buying on credit, creating an account payable.
◉ Accounts Receivable. Answer: Amounts owed to a business by its
credit customers and are usually collected in cash within 10 to 60
days.
◉ Accrual Accounting. Answer: The process that accountants use in
adjusting raw transaction data into refined measures of a firm's
economic performance.
◉ Accumulated Depreciation. Answer: Reflects the wear and tear, or
depreciation, of these items since they were originally purchased.
◉ Accumulated Other Comprehensive Income. Answer: The grouped
together and reported changes which companies experience
,increases and decreases in equity each year because of the
movement of market prices or exchange rates
◉ Activity-based Costing (ABC). Answer: A method of attributing
overhead costs to products based on measurable factors that relate
to activities that create overhead costs.
◉ Additional Paid-in Capital. Answer: Invested by stockholders that
exceeds the par value of the issued shares.
◉ American Institute of Certified Public Accountants (AICPA).
Answer: The professional organization of certified public
accountants in the United States.
◉ Asset. Answer: Probable future economic benefit obtained or
controlled by a particular entity as a result of past transactions or
events.
◉ Asset Mix. Answer: The proportion of total assets in each asset
category, is determined to a large degree by the industry in which
the company operates.
◉ Asset Turnover. Answer: Sales divided by assets and is interpreted
as the number of dollars in sales generated by each dollar of assets.
, ◉ Assets. Answer: The firm's economic resources, formally defined
as "probable future economic benefits obtained or controlled by a
particular entity as a result of past transactions or events
◉ Assets-to-equity Ratio. Answer: Assets divided by equity and is
interpreted as the number of dollars of assets acquired for each
dollar invested by stockholders.
◉ Audit Committee. Answer: Members of a company's board of
directors who are responsible for dealing with the external and
internal auditors.
◉ Average Collection Period. Answer: Shows the average number of
days that elapse between sale and cash collection.
◉ Balance Sheet. Answer: A listing of an organization's assets and of
its liabilities at a certain time.
◉ Batch-level Activities. Answer: Activities that take place in order
to support a batch or production run, regardless of the size of the
batch.
◉ Book Value. Answer: The book value of an asset is the asset's cost
minus the asset's accumulated depreciation.
