C213 Accounting for Decision Makers WGU LATEST UPDATE

C213 Accounting for Decision Makers WGU Balance Sheet - correct answer=financial position of company at a moment in time Income Statement - correct answer=Financial performance of the company over a period of time Statement of cash flows - correct answer=cash receipts and disbursements of company over a period of time Lender - correct answer=Predict ability to repay loans Investors - correct answer=Predict future earnings and dividends Suppliers & Customers - correct answer=ability to pay for goods and honor contracts Company management - correct answer=analyze company's strengths and weaknesses Accounting equation - correct answer=Assets = Liabilities + Owner's Equity Assets - correct answer=resources, typically owned by the company Liabilities - correct answer=Obligations or debts of the company Owners equity - correct answer=direct and indirect investments owners (stockholders) have made Liquidity - correct answer=the ease with which an asset can be converted into cash current assets - correct answer=cash and other assets expected to be exchanged for cash or consumed within a year Accounts Receivable - correct answer=Amounts owed by customers as a result of credit sales, usually collected in cash within 60 days of the sale. Short-term investments - correct answer=investments in stocks or bonds of another company that the company plans to sell within 12 monts long term assets - correct answer=assets the company does not expect to convert to cash or consume within 12 months Long-term investments - correct answer=investments in stock or bonds of another company that the company does not plan to sell within 12 months Property, plant, and equipment (PP&E) - correct answer=Land, buildings, machinery, and tools. intangible assets - correct answer=assets that have to physical or tangible characteristics (patents, copyrights, and trademarks) Current Liabilities - correct answer=liabilities due within a short time, usually within the next 12 months Accounts Payable - correct answer=Amounts to be paid in the future for goods or services already acquired Accrued Liabilitie