WGU C213 Accounting for Decision Makers – 167
Questions & Answers | Latest Update 2026 | 100% Pass
Guarantee | Exam Prep
1. What type of intangible assets do companies report on their balance sheets?
Purchased intangible assets
Physical assets
Internally developed intangible assets
Tangible assets
2. Describe the difference in dividend rights between common stockholders
and preferred stockholders.
Both receive dividends at the same time.
Common stockholders receive dividends before preferred
stockholders.
Common stockholders receive dividends after preferred
stockholders.
Preferred stockholders have no dividend rights.
3. What does the term 'asset mix' specifically refer to in accounting?
The total value of liabilities in a company.
The total revenue generated by a business.
The proportion of total assets in each category.
The classification of expenses in financial statements.
4. A current asset is
, an asset that is expected to be used or converted to cash within one
year of the operating cycle whichever is longer.
a miscellaneous asset that is small in dollar amount
an asset that will be used in the operating activities of a business
an asset generated by the operations of a business within the past
year
5. High profile accounting scandals in the early 2000s prompted the passage of
the:
Sarbanes-Oxley Act
PCAOB Auditing Standard No. 2
SEC Act of 1934
SEC Act of 1933
6. Which of the following statements BEST defines financial statements?
Financial statements are the information system that records and
measures business transactions.
Financial statements are the verbal statements made to business news
organizations by chief financial officers.
Financial statements are plans and forecasts for future time periods.
Financial statements are documents that report on a business in
monetary terms, providing information to help people make
informed business decisions.
7. What is earnings per share (EPS)
is the amount of current-period earnings that can be associated
with a single share of a corporation's common stock
, is the account of retained earnings that is revested into the entity.
8. What is the primary purpose of financing activities in accounting?
To obtain cash from or repay creditors and investors.
To analyze financial statements for decision-making.
To record daily transactions of a business.
To manage the company's inventory levels.
9. If a company chooses to disclose its accounting policies in a narrative note,
what impact might this have on investors' decision-making?
It would have no impact on investors' decisions.
It may lead to increased regulatory scrutiny.
It may help investors better understand the company's financial
practices.
It could confuse investors about the company's financial health.
10. Describe the significance of retained earnings for a company.
Retained earnings show the total revenue generated by the company.
Retained earnings represent the initial investment made by the
owners.
Retained earnings indicate how much profit is reinvested in the
business for growth and development.
Retained earnings reflect the amount of dividends distributed to
shareholders.
11. Financial Accounting Standards Board (FASB) does:
provides auditing standards for the world
, issues GAAP for the United States
audits the government
audits the world
12. Which of the following are ways analysts use financial ratios?
to compare a company's performance to industry averages.
to track a company's performance over time.
to evaluate how well a company has performed given its level of
resources.
All of the above are ways analysts use financial ratios.
13. Supplies, inventory, and accounts receivable are examples of current assets
because __ _.
They have relatively long useful lives, are currently used in the
business, and are subject to depreciation.
A company expects to convert them into cash or use them up
within one year.
A company expects to pay for them after one year.
14. In which one of the following situations should revenue be recognized?
The earnings process has begun and cash collectibility is reasonably
assured.
The earnings process has begun and cash has been collected.
The earnings process is substantially complete and cash
collectibility is reasonably assured.
The earnings process will soon begin and cash has been collected.
Questions & Answers | Latest Update 2026 | 100% Pass
Guarantee | Exam Prep
1. What type of intangible assets do companies report on their balance sheets?
Purchased intangible assets
Physical assets
Internally developed intangible assets
Tangible assets
2. Describe the difference in dividend rights between common stockholders
and preferred stockholders.
Both receive dividends at the same time.
Common stockholders receive dividends before preferred
stockholders.
Common stockholders receive dividends after preferred
stockholders.
Preferred stockholders have no dividend rights.
3. What does the term 'asset mix' specifically refer to in accounting?
The total value of liabilities in a company.
The total revenue generated by a business.
The proportion of total assets in each category.
The classification of expenses in financial statements.
4. A current asset is
, an asset that is expected to be used or converted to cash within one
year of the operating cycle whichever is longer.
a miscellaneous asset that is small in dollar amount
an asset that will be used in the operating activities of a business
an asset generated by the operations of a business within the past
year
5. High profile accounting scandals in the early 2000s prompted the passage of
the:
Sarbanes-Oxley Act
PCAOB Auditing Standard No. 2
SEC Act of 1934
SEC Act of 1933
6. Which of the following statements BEST defines financial statements?
Financial statements are the information system that records and
measures business transactions.
Financial statements are the verbal statements made to business news
organizations by chief financial officers.
Financial statements are plans and forecasts for future time periods.
Financial statements are documents that report on a business in
monetary terms, providing information to help people make
informed business decisions.
7. What is earnings per share (EPS)
is the amount of current-period earnings that can be associated
with a single share of a corporation's common stock
, is the account of retained earnings that is revested into the entity.
8. What is the primary purpose of financing activities in accounting?
To obtain cash from or repay creditors and investors.
To analyze financial statements for decision-making.
To record daily transactions of a business.
To manage the company's inventory levels.
9. If a company chooses to disclose its accounting policies in a narrative note,
what impact might this have on investors' decision-making?
It would have no impact on investors' decisions.
It may lead to increased regulatory scrutiny.
It may help investors better understand the company's financial
practices.
It could confuse investors about the company's financial health.
10. Describe the significance of retained earnings for a company.
Retained earnings show the total revenue generated by the company.
Retained earnings represent the initial investment made by the
owners.
Retained earnings indicate how much profit is reinvested in the
business for growth and development.
Retained earnings reflect the amount of dividends distributed to
shareholders.
11. Financial Accounting Standards Board (FASB) does:
provides auditing standards for the world
, issues GAAP for the United States
audits the government
audits the world
12. Which of the following are ways analysts use financial ratios?
to compare a company's performance to industry averages.
to track a company's performance over time.
to evaluate how well a company has performed given its level of
resources.
All of the above are ways analysts use financial ratios.
13. Supplies, inventory, and accounts receivable are examples of current assets
because __ _.
They have relatively long useful lives, are currently used in the
business, and are subject to depreciation.
A company expects to convert them into cash or use them up
within one year.
A company expects to pay for them after one year.
14. In which one of the following situations should revenue be recognized?
The earnings process has begun and cash collectibility is reasonably
assured.
The earnings process has begun and cash has been collected.
The earnings process is substantially complete and cash
collectibility is reasonably assured.
The earnings process will soon begin and cash has been collected.
