C213 Accounting for Decision Makers WGU Questions and Answers Review Exam_ A+ Graded 100%

C213 Accounting for Decision Makers WGU Questions and Answers Review Exam_ A+ Graded 100% 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 Liabilities - CORRECT ANSWER-Expenses that the company has incurred by year end but are unpaid. (interest payable, wages/salary) short-term notes payable - CORRECT ANSWER-Principal owed to bank or other lenders that are due within 12 months long-term liabilities - CORRECT ANSWER-Not due within the next 12 months retained earnings - CORRECT ANSWER-cumulative amount of a corporations profits that have been reinvested. Residual interest - CORRECT ANSWER-owners equity Income Statement Equation - CORRECT ANSWER-Revenues - Expenses = Net Income