WGU C202 Managing Human Capital
Exam | Questions With VERIFIED
Answers (2026/2027 )
Whatdoesaccountingfocuson(answer)Theimpactabusiness'sactivitieshave
on itsoverallfinancialperformance
Whichreportsummarizescashcollectionsandcashexpendituresfromoper
ating, investing, and financing activities over a
periodoftime(answer)State-mentofcashflows
Whichuserswouldhaveaprimaryconcernwithanorganization'sabilitytopro
videhealthcarebenefits(answer)Employees
Which body regulates a certified public accounting firm's audit
practiceswhenthefirmisauditingalargepubliclytradedcompany(answer)TheP
ublicCom-panyAccountingOversightBoard(PCAOB)
What has had the most significant impact on
accountingpractices(answer)Infor-mationtechnology
Whattwoitemsofinformationarerevealedonthebalancesheet?
Choose2answers:Ownership.D
ebt
Whichtermisdefinedastheresidualinterestinthenetassetsofacompa
ny(answer)Owners'equity
, Acorporationhastotalliabilitiesof$300million,totalowners'equityof
$100million,andcurrentassetsof$50million.
Whatisthevalueofthefirm'slong-termassets(answer)$350million
Whichsituationshouldresultinrevenuerecognitionontheincomestate-ment
for the year ending 12/31/14 if the firm is using accrual-basis account-
ing(answer)In 2014, a company provides services to a customer for which
cashwill becollectedthenextyear(2015).
Whichcategoryonthestatementofcashflowssummarizescashreceiptsand
payments to owners and creditors of the company(answer)Cash
flowsfromfinancingactivities
Wherewouldaninvestorfindasummaryofacompany'ssignificantacco
untingpolicies(answer)Inthenotestofinancialstatements
Whichassurancedoesanexternalauditreportprovideforitsreaders?-
:Thecompany'sfinancialstatementsfairlyreflectitsfinancialposition
Reliable:Informationthatcanbeverified
Relevant:Informationhavingtodowiththematterathand
Material:Informationthatisimportantenoughtomakeadifference
Conservatism:Informationrelatedtorecognizinglossesastheyoccur
, stepsinthedecisioncycle:1Preparefinancialstatements.2An
alyzefinancialstatements.
3 Gatherinformation.
4 Makedecision.
5 Implementdecision
Partialfinancialinformationforacompanyisasfollows:Cur
rentassets$36,543
Total assets
$58,719Currentliabilities
$24,824Totalliabilities$48
,561
Stockholders'equity$10,158
Sales$46,997
NetIncome$3,761
Marketvalueofshares$41,316
Whatistheprice-earnings(PE)ratioforthiscompany(answer)11.0
Whatisconsistentwithacontinualdeclineingrossprofitifthefirm'scostof
goodssoldremainsthesame(answer)Continualdecreaseinsales
Whichtwocashflowadequacyratiosrepresentacashcow(answer)-
$6,991/$5,486.$5,220/$1,875.
Which formula yields a cash times interest earned ratio
of11(answer)Cashbeforeinterestandtaxesof$11,000/cashpaidforinterestof$1,
000
Whichformofdebtshouldbereportedinthelong-termliabilitycatego-
ry(answer)Notespayableexpectedtobepaidin18months
InJanuaryofyear1,acompanybegandoingbusinessasacorporationinorde
rtoselltechnology-
relatedaccessoriesandservices.Duringitsfirstmonthofoperations,thefollowi
ngeventsoccurred:
, January1
Thecorporationreceived$1,000,000incashinexchangeforstockissuedtostock
holders.
January3
Thecorporationborrowed$250,000frombank.Theloanisafour-yearloan
withaninterestrateof12percent,payableeachyearonJanuary1beginninginyear2.
January5
Thecorporationpurchasedequipmenttobeusedinthebusinessfor
$200,000cash.
January8
Thecorporationpurchasedinventorycosting$200,000bypaying$120,000incas
h.Theremainderwasputoncreditaccountswithsuppliers.
January15
Thecorporationhiredfiveemployees.Eachemployeewillbepaid$1,000attheen
dofeachmonth.
January30
Thecorporationpaid$6,000cashforaone-
yearinsurancepolicy.ThepolicyperiodwillbeginonFebruary1,year 1.
What will be the impact of the January 5 event on the company's
balancesheetonthatdate(answer)
Equipmentwillincrease$200,000,andcashwilldecrease
$200,000.
InJanuaryofyear1,acompanybegandoingbusinessasacorporationinorde
rtoselltechnology-
relatedaccessoriesandservices.Duringitsfirstmonthofoperations,thefollowi
ngeventsoccurred:
January1
Thecorporationreceived$1,000,000incashinexchangeforstockissuedtostock
holders.
January3
The corporation borrowed $250,000 from a bank. The loan is a four-year
Exam | Questions With VERIFIED
Answers (2026/2027 )
Whatdoesaccountingfocuson(answer)Theimpactabusiness'sactivitieshave
on itsoverallfinancialperformance
Whichreportsummarizescashcollectionsandcashexpendituresfromoper
ating, investing, and financing activities over a
periodoftime(answer)State-mentofcashflows
Whichuserswouldhaveaprimaryconcernwithanorganization'sabilitytopro
videhealthcarebenefits(answer)Employees
Which body regulates a certified public accounting firm's audit
practiceswhenthefirmisauditingalargepubliclytradedcompany(answer)TheP
ublicCom-panyAccountingOversightBoard(PCAOB)
What has had the most significant impact on
accountingpractices(answer)Infor-mationtechnology
Whattwoitemsofinformationarerevealedonthebalancesheet?
Choose2answers:Ownership.D
ebt
Whichtermisdefinedastheresidualinterestinthenetassetsofacompa
ny(answer)Owners'equity
, Acorporationhastotalliabilitiesof$300million,totalowners'equityof
$100million,andcurrentassetsof$50million.
Whatisthevalueofthefirm'slong-termassets(answer)$350million
Whichsituationshouldresultinrevenuerecognitionontheincomestate-ment
for the year ending 12/31/14 if the firm is using accrual-basis account-
ing(answer)In 2014, a company provides services to a customer for which
cashwill becollectedthenextyear(2015).
Whichcategoryonthestatementofcashflowssummarizescashreceiptsand
payments to owners and creditors of the company(answer)Cash
flowsfromfinancingactivities
Wherewouldaninvestorfindasummaryofacompany'ssignificantacco
untingpolicies(answer)Inthenotestofinancialstatements
Whichassurancedoesanexternalauditreportprovideforitsreaders?-
:Thecompany'sfinancialstatementsfairlyreflectitsfinancialposition
Reliable:Informationthatcanbeverified
Relevant:Informationhavingtodowiththematterathand
Material:Informationthatisimportantenoughtomakeadifference
Conservatism:Informationrelatedtorecognizinglossesastheyoccur
, stepsinthedecisioncycle:1Preparefinancialstatements.2An
alyzefinancialstatements.
3 Gatherinformation.
4 Makedecision.
5 Implementdecision
Partialfinancialinformationforacompanyisasfollows:Cur
rentassets$36,543
Total assets
$58,719Currentliabilities
$24,824Totalliabilities$48
,561
Stockholders'equity$10,158
Sales$46,997
NetIncome$3,761
Marketvalueofshares$41,316
Whatistheprice-earnings(PE)ratioforthiscompany(answer)11.0
Whatisconsistentwithacontinualdeclineingrossprofitifthefirm'scostof
goodssoldremainsthesame(answer)Continualdecreaseinsales
Whichtwocashflowadequacyratiosrepresentacashcow(answer)-
$6,991/$5,486.$5,220/$1,875.
Which formula yields a cash times interest earned ratio
of11(answer)Cashbeforeinterestandtaxesof$11,000/cashpaidforinterestof$1,
000
Whichformofdebtshouldbereportedinthelong-termliabilitycatego-
ry(answer)Notespayableexpectedtobepaidin18months
InJanuaryofyear1,acompanybegandoingbusinessasacorporationinorde
rtoselltechnology-
relatedaccessoriesandservices.Duringitsfirstmonthofoperations,thefollowi
ngeventsoccurred:
, January1
Thecorporationreceived$1,000,000incashinexchangeforstockissuedtostock
holders.
January3
Thecorporationborrowed$250,000frombank.Theloanisafour-yearloan
withaninterestrateof12percent,payableeachyearonJanuary1beginninginyear2.
January5
Thecorporationpurchasedequipmenttobeusedinthebusinessfor
$200,000cash.
January8
Thecorporationpurchasedinventorycosting$200,000bypaying$120,000incas
h.Theremainderwasputoncreditaccountswithsuppliers.
January15
Thecorporationhiredfiveemployees.Eachemployeewillbepaid$1,000attheen
dofeachmonth.
January30
Thecorporationpaid$6,000cashforaone-
yearinsurancepolicy.ThepolicyperiodwillbeginonFebruary1,year 1.
What will be the impact of the January 5 event on the company's
balancesheetonthatdate(answer)
Equipmentwillincrease$200,000,andcashwilldecrease
$200,000.
InJanuaryofyear1,acompanybegandoingbusinessasacorporationinorde
rtoselltechnology-
relatedaccessoriesandservices.Duringitsfirstmonthofoperations,thefollowi
ngeventsoccurred:
January1
Thecorporationreceived$1,000,000incashinexchangeforstockissuedtostock
holders.
January3
The corporation borrowed $250,000 from a bank. The loan is a four-year
