C213 Accounting for Decision Makers WGU Questions With 100% Correct Answers.

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