WGU C213 CERTIFICATION SCRIPT 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◍ Long-term Investments.
Answer: Those assets that you expect to still be around next year when you
prepare the balance sheet again.
◍ Controlling.
Answer: Implementing management plans and identifying how plans
compare with actual performance.
◍ Direct Method.
Answer: reporting the information contained in the last column of the
adjustment worksheet
◍ Losses.
Answer: Refers to money lost on activities outside the normal business of a
company
◍ 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
◍ Loss.
Answer: The amount of a company loses money on activities that are
peripheral to its primary operations
◍ Generally Accepted Auditing Standards (GAAS).
Answer: Auditing standards developed by the PCAOB for public companies
and AICPA for private companies.
◍ Operational Budgeting.
Answer: Managerial planning decisions regarding current and immediate
, future (a year or less) operations that are characterized by regularity and
frequency.
◍ Product Costs.
Answer: Costs associated with products or services offered.
◍ Transaction Analysis.
Answer: The process of determining how an economic event impacts the
financial statements
◍ American Institute of Certified Public Accountants (AICPA).
Answer: The professional organization of certified public accountants in the
United States.
◍ Indirect Costs.
Answer: Costs normally incurred for the benefit of several segments within
the organization; sometimes called common costs or joint costs.
◍ Income Smoothing.
Answer: The practice of carefully timing the recognition of revenues and
expenses to even out the amount of reported earnings from one year to the
next.
◍ Treasury Stock.
Answer: The repurchased shares when a company buys back its own shares
◍ Regression Line.
Answer: On a scattergraph, the straight line that most closely expresses the
relationship between the variables.
◍ Recognition.
Answer: Boil down all the estimates and judgments into one number and
report that one number in formal financial statements.
◍ Historical Cost Convention.
Answer: An accounting technique that values an asset for balance sheet
purposes at the price paid for the asset at the time of its acquisition
◍ Fixed Costs.
, Answer: Costs that remain constant in total, regardless of activity level, at
least over a certain range of activity.
◍ Independent Checks.
Answer: Procedures for continual internal verification of other controls.
◍ Operating Activities.
Answer: All transactions relating to a company's delivering or producing its
goods for sale and providing its services
◍ Financial Statements.
Answer: The three primary financial information documents: the balance
sheet, income statement, and statement of cash flows.
◍ Gross Profit.
Answer: The difference between the selling price of the product and the cost
of the product.
◍ Visual-fit.
Answer: A method of segregating the fixed and variable components of a
mixed cost by plotting on total costs at several activity levels and drawing a
regression line through the points.
◍ Contribution Margin Ratio.
Answer: The percentage of net sales revenue left after variable costs are
deducted; the contribution margin divided by net sales revenue.
◍ 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.
◍ Debt Ratio.
Answer: A frequently used measure of leverage, computed as total liabilities
divided by total assets.
◍ Executory Contract,.
Answer: It is an exchange of promises about the future.
QUESTIONS WITH SOLUTIONS GRADED A+
◍ Long-term Investments.
Answer: Those assets that you expect to still be around next year when you
prepare the balance sheet again.
◍ Controlling.
Answer: Implementing management plans and identifying how plans
compare with actual performance.
◍ Direct Method.
Answer: reporting the information contained in the last column of the
adjustment worksheet
◍ Losses.
Answer: Refers to money lost on activities outside the normal business of a
company
◍ 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
◍ Loss.
Answer: The amount of a company loses money on activities that are
peripheral to its primary operations
◍ Generally Accepted Auditing Standards (GAAS).
Answer: Auditing standards developed by the PCAOB for public companies
and AICPA for private companies.
◍ Operational Budgeting.
Answer: Managerial planning decisions regarding current and immediate
, future (a year or less) operations that are characterized by regularity and
frequency.
◍ Product Costs.
Answer: Costs associated with products or services offered.
◍ Transaction Analysis.
Answer: The process of determining how an economic event impacts the
financial statements
◍ American Institute of Certified Public Accountants (AICPA).
Answer: The professional organization of certified public accountants in the
United States.
◍ Indirect Costs.
Answer: Costs normally incurred for the benefit of several segments within
the organization; sometimes called common costs or joint costs.
◍ Income Smoothing.
Answer: The practice of carefully timing the recognition of revenues and
expenses to even out the amount of reported earnings from one year to the
next.
◍ Treasury Stock.
Answer: The repurchased shares when a company buys back its own shares
◍ Regression Line.
Answer: On a scattergraph, the straight line that most closely expresses the
relationship between the variables.
◍ Recognition.
Answer: Boil down all the estimates and judgments into one number and
report that one number in formal financial statements.
◍ Historical Cost Convention.
Answer: An accounting technique that values an asset for balance sheet
purposes at the price paid for the asset at the time of its acquisition
◍ Fixed Costs.
, Answer: Costs that remain constant in total, regardless of activity level, at
least over a certain range of activity.
◍ Independent Checks.
Answer: Procedures for continual internal verification of other controls.
◍ Operating Activities.
Answer: All transactions relating to a company's delivering or producing its
goods for sale and providing its services
◍ Financial Statements.
Answer: The three primary financial information documents: the balance
sheet, income statement, and statement of cash flows.
◍ Gross Profit.
Answer: The difference between the selling price of the product and the cost
of the product.
◍ Visual-fit.
Answer: A method of segregating the fixed and variable components of a
mixed cost by plotting on total costs at several activity levels and drawing a
regression line through the points.
◍ Contribution Margin Ratio.
Answer: The percentage of net sales revenue left after variable costs are
deducted; the contribution margin divided by net sales revenue.
◍ 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.
◍ Debt Ratio.
Answer: A frequently used measure of leverage, computed as total liabilities
divided by total assets.
◍ Executory Contract,.
Answer: It is an exchange of promises about the future.
