WGU C213 ACCOUNTING FOR DECISION MAKERS
PVAC NEWEST VERSION ACTUAL QUESTION
AND CORRECT DETAILED VERIFIED ANSWERS
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Comprehensive High-Yield Questions with Detailed Rationales
What does accounting focus on?
a. The impact a business's activities have on its overall financial performance
b. The daily operations of a business
c. Marketing strategies and consumer behavior
d. Employee satisfaction and human resources
✔️ Correct Answer: A
, Rationale: Accounting focuses on the impact a business's activities have on its overall
financial performance. It involves identifying, measuring, and communicating financial
information to stakeholders. Option B describes operations management. Option C
describes marketing. Option D describes human resources. DIF: Knowledge. REF:
Accounting Overview. OBJ: Define accounting focus. TOP: Financial Accounting.
The following information was taken from the records of Merle Corporation for the
period ending December 31, 2012:
Advertising expense: $1,200
Equipment: $800
Accounts receivable: $1,500
Notes payable: $6,000
Retained earnings: $8,420
Utilities expense: $1,385
Revenues: $4,620
Dividends: $975
Interest receivable: $125
Rent expense: $655
Assuming that 3,450 shares of stock are outstanding, earnings per share is
approximately:
a. $0.27
b. $0.23
c. $1.40
d. $0.40
✔️ Correct Answer: D
,Rationale: Net income is calculated as Revenues minus Expenses: $4,620 - $1,200 -
$1,385 - $655 = $1,380. Earnings per share is net income divided by shares outstanding:
$1,,450 shares = $0.40 per share. Option A, B, and C are incorrect calculations.
DIF: Application. REF: Income Statement. OBJ: Calculate EPS. TOP: Financial Accounting.
Capital stock is:
a. total shares of ownership in a corporation
b. the amount of money borrowed by a corporation
c. the retained earnings of a corporation
d. the total assets of a corporation
✔️ Correct Answer: A
Rationale: Capital stock represents the total shares of ownership in a corporation,
indicating the owners' contributions to the corporation. Option B describes liabilities.
Option C describes retained earnings. Option D describes total assets. DIF: Knowledge.
REF: Balance Sheet. OBJ: Define capital stock. TOP: Financial Accounting.
Which of the following is the correct way to date an income statement?
a. For the Year Ended December 31, 2012
b. December 31, 2012
c. As of December 31, 2012
d. At December 31, 2012
✔️ Correct Answer: A
, Rationale: The income statement covers a period of time, so it is dated "For the Year
Ended December 31, 2012." Option B, C, and D are used for the balance sheet, which is
dated at a specific point in time. DIF: Knowledge. REF: Income Statement. OBJ: Date
financial statements. TOP: Financial Accounting.
The following information was taken from the records of McDyce Corporation for the
year ended December 31, 2013:
Dividends paid: $12,800
Service revenue: $90,500
Accounts payable: $139,750
Capital stock: $378,750
Total expenses: $67,000
Retained earnings (1/1/13): $43,400
The net income at December 31, 2013 was:
a. $72,750
b. $23,500
c. $54,100
d. $43,400
✔️ Correct Answer: B
Rationale: Net income is calculated as Revenue minus Expenses: $90,500 - $67,000 =
$23,500. Dividends, accounts payable, capital stock, and beginning retained earnings are
not used in the net income calculation. Option A, C, and D are incorrect. DIF: Application.
REF: Income Statement. OBJ: Calculate net income. TOP: Financial Accounting.
PVAC NEWEST VERSION ACTUAL QUESTION
AND CORRECT DETAILED VERIFIED ANSWERS
LATEST UPDATE| FULL TEST BANK
2026/2027 Frequently Most Tested
Questions and 100% Accurate From Past
papers | Graded A+ , Reviewed and
Updated | 100% Guarantee Pass | Latest
Exam and Newest Version!!!
Comprehensive High-Yield Questions with Detailed Rationales
What does accounting focus on?
a. The impact a business's activities have on its overall financial performance
b. The daily operations of a business
c. Marketing strategies and consumer behavior
d. Employee satisfaction and human resources
✔️ Correct Answer: A
, Rationale: Accounting focuses on the impact a business's activities have on its overall
financial performance. It involves identifying, measuring, and communicating financial
information to stakeholders. Option B describes operations management. Option C
describes marketing. Option D describes human resources. DIF: Knowledge. REF:
Accounting Overview. OBJ: Define accounting focus. TOP: Financial Accounting.
The following information was taken from the records of Merle Corporation for the
period ending December 31, 2012:
Advertising expense: $1,200
Equipment: $800
Accounts receivable: $1,500
Notes payable: $6,000
Retained earnings: $8,420
Utilities expense: $1,385
Revenues: $4,620
Dividends: $975
Interest receivable: $125
Rent expense: $655
Assuming that 3,450 shares of stock are outstanding, earnings per share is
approximately:
a. $0.27
b. $0.23
c. $1.40
d. $0.40
✔️ Correct Answer: D
,Rationale: Net income is calculated as Revenues minus Expenses: $4,620 - $1,200 -
$1,385 - $655 = $1,380. Earnings per share is net income divided by shares outstanding:
$1,,450 shares = $0.40 per share. Option A, B, and C are incorrect calculations.
DIF: Application. REF: Income Statement. OBJ: Calculate EPS. TOP: Financial Accounting.
Capital stock is:
a. total shares of ownership in a corporation
b. the amount of money borrowed by a corporation
c. the retained earnings of a corporation
d. the total assets of a corporation
✔️ Correct Answer: A
Rationale: Capital stock represents the total shares of ownership in a corporation,
indicating the owners' contributions to the corporation. Option B describes liabilities.
Option C describes retained earnings. Option D describes total assets. DIF: Knowledge.
REF: Balance Sheet. OBJ: Define capital stock. TOP: Financial Accounting.
Which of the following is the correct way to date an income statement?
a. For the Year Ended December 31, 2012
b. December 31, 2012
c. As of December 31, 2012
d. At December 31, 2012
✔️ Correct Answer: A
, Rationale: The income statement covers a period of time, so it is dated "For the Year
Ended December 31, 2012." Option B, C, and D are used for the balance sheet, which is
dated at a specific point in time. DIF: Knowledge. REF: Income Statement. OBJ: Date
financial statements. TOP: Financial Accounting.
The following information was taken from the records of McDyce Corporation for the
year ended December 31, 2013:
Dividends paid: $12,800
Service revenue: $90,500
Accounts payable: $139,750
Capital stock: $378,750
Total expenses: $67,000
Retained earnings (1/1/13): $43,400
The net income at December 31, 2013 was:
a. $72,750
b. $23,500
c. $54,100
d. $43,400
✔️ Correct Answer: B
Rationale: Net income is calculated as Revenue minus Expenses: $90,500 - $67,000 =
$23,500. Dividends, accounts payable, capital stock, and beginning retained earnings are
not used in the net income calculation. Option A, C, and D are incorrect. DIF: Application.
REF: Income Statement. OBJ: Calculate net income. TOP: Financial Accounting.
