WGUl C213l Objectivel Assessment–l
Accountingl forl Decisionl Makerl Guidel
(Latestl 2026/l 2027l Update)l |l 100%l
Verifiedl Questionsl &l Answersl |l Gradel A
Q:l Operatingl Activities
Answer:
Thosel activitiesl thatl comprisel thel day-to-dayl operationsl ofl al business.
Q:l Investingl Activities
Answer:
Thel purchasel andl salel ofl long-terml assetsl suchl asl landl andl equipment.
Q:l Financingl Activities
Answer:
Thosel activitiesl throughl whichl cashl isl obtainedl from,l orl repaidl to,l creditorsl andl
investors.
Q:l Relevantl Information
Answer:
Informationl thatl isl providedl onl al timelyl basisl andl canl bel usedl tol assessl thel pastl andl
tol projectl thel futurel forl decisionl making.
Q:l Reliablel Information
Answer:
,Informationl thatl representsl whatl itl isl supposedl tol represent.
Q:l Comparability
Answer:
Allowsl al company'sl financiall statementsl tol bel analyzedl inl lightl ofl thel company'sl ownl
performancel inl priorl yearsl orl otherl companies'l performance.
Q:l Conservatism
Answer:
Thel practicel ofl recognizingl alll lossesl butl notl recognizingl gainsl untill theyl arel certain.
Q:l Articulation
Answer:
Thel ideal thatl thel threel primaryl financiall statementsl arel interrelated.
Q:l Purposel ofl Financiall Statementl Analysis
Answer:
1.l Canl bel usedl tol diagnosel existingl problems
2.l Tol forecastl howl al companyl willl performl inl thel future
Q:l Debtl Ratio
Answer:
Percentagel ofl companyl fundingl thatl isl borrowed
Q:l Currentl Ratio
,Answer:
Indicationl ofl al company'sl abilityl tol payl itsl short-terml debts.
Q:l Returnl onl Sales
Answer:
Penniesl inl profitl onl eachl dollarl ofl sales.
Q:l Assetl Turnover
Answer:
Measurel ofl efficiency;l numberl ofl salesl dollarsl generatedl byl eachl dollarl ofl assets.
Q:l Returnl onl Equity
Answer:
Penniesl inl profitl forl eachl dollarl investedl byl stockholders.
Q:l Price-earningsl Ratio
Answer:
Numberl ofl dollarsl anl investorl mustl payl tol "buy"l thel futurel rightsl tol eachl dollarl ofl
currentl earnings.
Q:l Common-sizel Financiall Statements
Answer:
1.l Allowsl comparisonl ofl financiall statementsl acrossl yearsl andl betweenl companies.
2.l Arel preparedl byl dividingl alll financiall statementl numbersl byl salesl forl thel year.
Q:l Profitability
, Answer:
Thel numberl ofl penniesl inl profitl generatedl froml eachl dollarl ofl sales.
Q:l Efficiency
Answer:
Thel numberl ofl dollarsl inl salesl generatedl byl eachl dollarl ofl assets.
Q:l Leverage
Answer:
Thel numberl ofl dollarsl ofl assetsl al companyl isl ablel tol acquirel usingl eachl dollarl
investedl byl stockholders.
Q:l Margin
Answer:
Thel profitabilityl ofl eachl dollarl inl sales.
Q:l Turnover
Answer:
Thel degreel tol whichl assetsl arel usedl tol generatel sales.
Q:l Cash-flowl Ratio
Answer:
1.l Usefull whenl netl incomel isl impactedl byl largel non-cashl expenses.
2.l Usefull whenl rapidl growthl causesl cashl froml operationsl tol bel muchl lessl thanl
reportedl netl income.
3.l Usefull whenl companyl managementl hasl al strongl incentivel tol biasl reportedl netl
income.
Accountingl forl Decisionl Makerl Guidel
(Latestl 2026/l 2027l Update)l |l 100%l
Verifiedl Questionsl &l Answersl |l Gradel A
Q:l Operatingl Activities
Answer:
Thosel activitiesl thatl comprisel thel day-to-dayl operationsl ofl al business.
Q:l Investingl Activities
Answer:
Thel purchasel andl salel ofl long-terml assetsl suchl asl landl andl equipment.
Q:l Financingl Activities
Answer:
Thosel activitiesl throughl whichl cashl isl obtainedl from,l orl repaidl to,l creditorsl andl
investors.
Q:l Relevantl Information
Answer:
Informationl thatl isl providedl onl al timelyl basisl andl canl bel usedl tol assessl thel pastl andl
tol projectl thel futurel forl decisionl making.
Q:l Reliablel Information
Answer:
,Informationl thatl representsl whatl itl isl supposedl tol represent.
Q:l Comparability
Answer:
Allowsl al company'sl financiall statementsl tol bel analyzedl inl lightl ofl thel company'sl ownl
performancel inl priorl yearsl orl otherl companies'l performance.
Q:l Conservatism
Answer:
Thel practicel ofl recognizingl alll lossesl butl notl recognizingl gainsl untill theyl arel certain.
Q:l Articulation
Answer:
Thel ideal thatl thel threel primaryl financiall statementsl arel interrelated.
Q:l Purposel ofl Financiall Statementl Analysis
Answer:
1.l Canl bel usedl tol diagnosel existingl problems
2.l Tol forecastl howl al companyl willl performl inl thel future
Q:l Debtl Ratio
Answer:
Percentagel ofl companyl fundingl thatl isl borrowed
Q:l Currentl Ratio
,Answer:
Indicationl ofl al company'sl abilityl tol payl itsl short-terml debts.
Q:l Returnl onl Sales
Answer:
Penniesl inl profitl onl eachl dollarl ofl sales.
Q:l Assetl Turnover
Answer:
Measurel ofl efficiency;l numberl ofl salesl dollarsl generatedl byl eachl dollarl ofl assets.
Q:l Returnl onl Equity
Answer:
Penniesl inl profitl forl eachl dollarl investedl byl stockholders.
Q:l Price-earningsl Ratio
Answer:
Numberl ofl dollarsl anl investorl mustl payl tol "buy"l thel futurel rightsl tol eachl dollarl ofl
currentl earnings.
Q:l Common-sizel Financiall Statements
Answer:
1.l Allowsl comparisonl ofl financiall statementsl acrossl yearsl andl betweenl companies.
2.l Arel preparedl byl dividingl alll financiall statementl numbersl byl salesl forl thel year.
Q:l Profitability
, Answer:
Thel numberl ofl penniesl inl profitl generatedl froml eachl dollarl ofl sales.
Q:l Efficiency
Answer:
Thel numberl ofl dollarsl inl salesl generatedl byl eachl dollarl ofl assets.
Q:l Leverage
Answer:
Thel numberl ofl dollarsl ofl assetsl al companyl isl ablel tol acquirel usingl eachl dollarl
investedl byl stockholders.
Q:l Margin
Answer:
Thel profitabilityl ofl eachl dollarl inl sales.
Q:l Turnover
Answer:
Thel degreel tol whichl assetsl arel usedl tol generatel sales.
Q:l Cash-flowl Ratio
Answer:
1.l Usefull whenl netl incomel isl impactedl byl largel non-cashl expenses.
2.l Usefull whenl rapidl growthl causesl cashl froml operationsl tol bel muchl lessl thanl
reportedl netl income.
3.l Usefull whenl companyl managementl hasl al strongl incentivel tol biasl reportedl netl
income.
