Pass Your 2025-2026 WGU C213 Final Exam Accounting
for Decision Makers Actual Questions and Verified
Answers, 100% Guarantee Pass
,Order of assets listed on the balance sheet
Assets are listed in the order of liquidity. Liquidity is the amount of time it would usually take
to covert an asset into cash. Obviously, cash would be listed first, followed by marketable
investments (a company can quickly convert a short-term investment into cash). Accounts
receivable would be listed next followed by inventory, and long-term investments, fixed assets,
and intangibles.
Current assets are listed before long-term assets.
Current liabilities are listed before long-term liabilities, but there is no specific order they are
listed in outside of current and long-term.
There is also no specific order equity accounts are listed on the balance sheet; although,
typically you will see paid-in-capital followed by retained earnings followed by accumulated
other comprehensive income, and lastly, treasury stock.
Statement of Cash Flows
This document reports the amount of cash collected and paid out by a company in the following
three types of activities: operating, investing, and financing.
Accounting Equation
Assets = Liabilities + Owners' Equity
Accumulated Other Comprehensive Income
The source of these increased assets
Assets
Assets are the firm's economic resources, formally defined as "probable future economic
benefits obtained or controlled by a particular entity as a result of past transactions or events
What does accounting focus on?
The impact a business's activities have on its overall financial performance
Which report summarizes cash collections and cash expenditures from operating, investing,
and financing activities over a period of time?
Statement of cash flows
,Which users would have a primary concern with an organization's ability to provide
healthcare benefits?
Employees
Which benefit does a corporation gain by following Generally Accepted Accounting Principles
(GAAP)?
An increase in its comparability to other companies
Which body regulates a certified public accounting firm's audit practices when the firm is
auditing a large publicly traded company?
The Public Company Accounting Oversight Board (PCAOB)
What has had the most significant impact on accounting practices?
Information technology
What two items of information are revealed on the balance sheet?
Ownership, Debt
Which term is defined as the residual interest in the net assets of a company?
Owners' equity
A corporation has total liabilities of $300 million, total owners' equity of $100 million, and
current assets of $50 million.
What is the value of the firm's long-term assets?
$350 million
Which situation should result in revenue recognition on the income statement for the year
ending 12/31/14 if the firm is using accrual-basis accounting?
In 2014, a company provides services to a customer for which cash will be collected the next
year (2015).
Which category on the statement of cash flows summarizes cash receipts and payments to
owners and creditors of the company?
Cash flows from financing activities
Where would an investor find a summary of a company's significant accounting policies?
In the notes to financial statements
, Which assurance does an external audit report provide for its readers?
The company's financial statements fairly reflect its financial position
Match each accounting term with its definition.
Reliable = Information that can be verified
Relevant = Information having to do with the matter at hand
Material = Information that is important enough to make a difference
Conservatism = Information related to recognizing losses as they occur
Order the steps in the decision cycle from first (1) to last (5).
1. Prepare financial statements
2.Analyze financial statements
3.Gather information
4. Make decision
5. Implement decision
Partial financial information for a company is as follows: Current assets $36,543 Total assets
$58,719 Current liabilities $24,824 Total liabilities $48,561 Stockholders' equity $10,158 Sales
$46,997 Net Income $ 3,761 Market value of shares$41,316
What is the price-earnings (PE) ratio for this company?
11.0
What does it mean if a company has a debt ratio of 101.5%?
The company has 1.5% more total liabilities than total assets.
What is consistent with a continual decline in gross profit if the firm's cost of goods sold
remains the same?
Continual decrease in sales
Which two cash flow adequacy ratios represent a cash cow?
$6,991/$5,486
$5,220/$1,875
Which formula yields a cash times interest earned ratio of 11?
Cash before interest and taxes of $11,000 / cash paid for interest of $1,000
Which form of debt should be reported in the long-term liability category?
for Decision Makers Actual Questions and Verified
Answers, 100% Guarantee Pass
,Order of assets listed on the balance sheet
Assets are listed in the order of liquidity. Liquidity is the amount of time it would usually take
to covert an asset into cash. Obviously, cash would be listed first, followed by marketable
investments (a company can quickly convert a short-term investment into cash). Accounts
receivable would be listed next followed by inventory, and long-term investments, fixed assets,
and intangibles.
Current assets are listed before long-term assets.
Current liabilities are listed before long-term liabilities, but there is no specific order they are
listed in outside of current and long-term.
There is also no specific order equity accounts are listed on the balance sheet; although,
typically you will see paid-in-capital followed by retained earnings followed by accumulated
other comprehensive income, and lastly, treasury stock.
Statement of Cash Flows
This document reports the amount of cash collected and paid out by a company in the following
three types of activities: operating, investing, and financing.
Accounting Equation
Assets = Liabilities + Owners' Equity
Accumulated Other Comprehensive Income
The source of these increased assets
Assets
Assets are the firm's economic resources, formally defined as "probable future economic
benefits obtained or controlled by a particular entity as a result of past transactions or events
What does accounting focus on?
The impact a business's activities have on its overall financial performance
Which report summarizes cash collections and cash expenditures from operating, investing,
and financing activities over a period of time?
Statement of cash flows
,Which users would have a primary concern with an organization's ability to provide
healthcare benefits?
Employees
Which benefit does a corporation gain by following Generally Accepted Accounting Principles
(GAAP)?
An increase in its comparability to other companies
Which body regulates a certified public accounting firm's audit practices when the firm is
auditing a large publicly traded company?
The Public Company Accounting Oversight Board (PCAOB)
What has had the most significant impact on accounting practices?
Information technology
What two items of information are revealed on the balance sheet?
Ownership, Debt
Which term is defined as the residual interest in the net assets of a company?
Owners' equity
A corporation has total liabilities of $300 million, total owners' equity of $100 million, and
current assets of $50 million.
What is the value of the firm's long-term assets?
$350 million
Which situation should result in revenue recognition on the income statement for the year
ending 12/31/14 if the firm is using accrual-basis accounting?
In 2014, a company provides services to a customer for which cash will be collected the next
year (2015).
Which category on the statement of cash flows summarizes cash receipts and payments to
owners and creditors of the company?
Cash flows from financing activities
Where would an investor find a summary of a company's significant accounting policies?
In the notes to financial statements
, Which assurance does an external audit report provide for its readers?
The company's financial statements fairly reflect its financial position
Match each accounting term with its definition.
Reliable = Information that can be verified
Relevant = Information having to do with the matter at hand
Material = Information that is important enough to make a difference
Conservatism = Information related to recognizing losses as they occur
Order the steps in the decision cycle from first (1) to last (5).
1. Prepare financial statements
2.Analyze financial statements
3.Gather information
4. Make decision
5. Implement decision
Partial financial information for a company is as follows: Current assets $36,543 Total assets
$58,719 Current liabilities $24,824 Total liabilities $48,561 Stockholders' equity $10,158 Sales
$46,997 Net Income $ 3,761 Market value of shares$41,316
What is the price-earnings (PE) ratio for this company?
11.0
What does it mean if a company has a debt ratio of 101.5%?
The company has 1.5% more total liabilities than total assets.
What is consistent with a continual decline in gross profit if the firm's cost of goods sold
remains the same?
Continual decrease in sales
Which two cash flow adequacy ratios represent a cash cow?
$6,991/$5,486
$5,220/$1,875
Which formula yields a cash times interest earned ratio of 11?
Cash before interest and taxes of $11,000 / cash paid for interest of $1,000
Which form of debt should be reported in the long-term liability category?
