C213 WGU OBJECTIVE ASSESSMENT UPDATED ACTUAL Exam
Questions and CORRECT Answers | Complete Certification
Review Guide | Grade A+
Question 1.
Debt Ratio.
CORRECT ANSWER: Total Liabilities/Total Assets
Question 2.
Current Ratio.
CORRECT ANSWER: Current Assets/Current Liabilities. Only need a balance
sheet.
Question 3.
Return on Sales.
CORRECT ANSWER: Net Income/Sales. Only need income statement
Question 4.
Asset Turnover.
CORRECT ANSWER: Sales/Total Assets
Question 5.
Return on Equity.
CORRECT ANSWER: Net Income/Stockholder's equity. Balance and Income
Statements used.
Question 6.
Price-Earnings Ratio (PE).
CORRECT ANSWER: Market Value fo Shares/Net Income
Question 7.
Accounting is.
CORRECT ANSWER: the recording of the day-to-day financial activities of a
company and the organization of that information into summary reports used
to evaluate the company's financial status.
, Question 8.
Bookeeping is.
CORRECT ANSWER: the preservation of a systematic, quantitative record of an
activity. Without bookkeeping, good business is impossible. An accounting
system is used by a business to handle routine bookkeeping tasks and to
structure the information so it can be used to evaluate the performance and
financial status of the business. Accounting information is intended to be
useful in making decisions about the future.
Question 9.
The focus of financial accounting is.
CORRECT ANSWER: the three primary financial statements: the balance sheet,
the income statement, and the statement of cash flows.
• Financial accounting information is. CORRECT ANSWER: provided for, and
used by, external users. Managerial accounting is the name given to
accounting systems designed for internal users. The information provided by
financial accounting is summarized in the financial statements:
The balance sheet reports a company's assets, liabilities, and owners' equity.
The income statement reports the amount of net income earned by a company
during a period. Net income is the excess of a company's revenues over its
expenses.
The statement of cash flows reports the amount of cash collected and paid out
by a company in the following three types of activities: operating, investing,
and financing.
Question 10.
Among the users of financial accounting information are.
CORRECT ANSWER: lenders, investors, company management, suppliers,
customers, employees, competitors, government agencies, politicians, and
the press.
Question 11.
Financial accounting information helps.
CORRECT ANSWER: lenders evaluate the cash flows a business can be
expected to generate in the future in order to repay loans. Investors use the
same type of information to assess the attractiveness of companies as
investments. Managers use financial accounting data to formulate company
goals, to compute bonuses for employees, and to illuminate company
weaknesses. Suppliers, customers, and employees use financial statements to
tell them about the long-run prospects of a company. Competitors use
financial accounting information to reveal strategic opportunities within their
industry. Government agencies and politicians use financial statement data to
Questions and CORRECT Answers | Complete Certification
Review Guide | Grade A+
Question 1.
Debt Ratio.
CORRECT ANSWER: Total Liabilities/Total Assets
Question 2.
Current Ratio.
CORRECT ANSWER: Current Assets/Current Liabilities. Only need a balance
sheet.
Question 3.
Return on Sales.
CORRECT ANSWER: Net Income/Sales. Only need income statement
Question 4.
Asset Turnover.
CORRECT ANSWER: Sales/Total Assets
Question 5.
Return on Equity.
CORRECT ANSWER: Net Income/Stockholder's equity. Balance and Income
Statements used.
Question 6.
Price-Earnings Ratio (PE).
CORRECT ANSWER: Market Value fo Shares/Net Income
Question 7.
Accounting is.
CORRECT ANSWER: the recording of the day-to-day financial activities of a
company and the organization of that information into summary reports used
to evaluate the company's financial status.
, Question 8.
Bookeeping is.
CORRECT ANSWER: the preservation of a systematic, quantitative record of an
activity. Without bookkeeping, good business is impossible. An accounting
system is used by a business to handle routine bookkeeping tasks and to
structure the information so it can be used to evaluate the performance and
financial status of the business. Accounting information is intended to be
useful in making decisions about the future.
Question 9.
The focus of financial accounting is.
CORRECT ANSWER: the three primary financial statements: the balance sheet,
the income statement, and the statement of cash flows.
• Financial accounting information is. CORRECT ANSWER: provided for, and
used by, external users. Managerial accounting is the name given to
accounting systems designed for internal users. The information provided by
financial accounting is summarized in the financial statements:
The balance sheet reports a company's assets, liabilities, and owners' equity.
The income statement reports the amount of net income earned by a company
during a period. Net income is the excess of a company's revenues over its
expenses.
The statement of cash flows reports the amount of cash collected and paid out
by a company in the following three types of activities: operating, investing,
and financing.
Question 10.
Among the users of financial accounting information are.
CORRECT ANSWER: lenders, investors, company management, suppliers,
customers, employees, competitors, government agencies, politicians, and
the press.
Question 11.
Financial accounting information helps.
CORRECT ANSWER: lenders evaluate the cash flows a business can be
expected to generate in the future in order to repay loans. Investors use the
same type of information to assess the attractiveness of companies as
investments. Managers use financial accounting data to formulate company
goals, to compute bonuses for employees, and to illuminate company
weaknesses. Suppliers, customers, and employees use financial statements to
tell them about the long-run prospects of a company. Competitors use
financial accounting information to reveal strategic opportunities within their
industry. Government agencies and politicians use financial statement data to
