WGU Accounting for Decision Makers Exam Dumps (V8.02) for Learning – Read WGU Accounting for Decision Makers Free Dumps (Part 1, Q1-Q40) First

The WGU Accounting for Decision Makers (C213) is a core requirement for your WGU MBA journey, which improves your ability to understand reports and use accounting information to plan and make sound business decisions. When learning this course, taking the WGU Accounting for Decision Makers exam dumps (V8.02) of DumpsBase is one of the most effective ways to build confidence. We have 200 practice questions and answers in V8.02, providing an accurate reflection of the actual test content, enabling you to master frequently tested topics. Trust DumpsBase today. With a strategic study approach using these Accounting for Decision Makers exam dumps, you can maximize your performance and confidently achieve your WGU MBA certification.

Read our Accounting for Decision Makers free dumps (Part 1, Q1-Q40) of V8.02 below:

1. Which ratio measures the proportion of assets financed by liabilities?

Return on sales

Asset turnover

Debt ratio

Gross profit ratio

2. Which of the following is typically a current liability?

Mortgage payable due in 15 years

Accounts payable

Common stock

Land held for investment

3. Which ratio measures how efficiently assets are used to generate sales?

Current ratio

Asset turnover

Debt ratio

P/E ratio

4. Which of the following best explains why society can trust independent auditors?

They work for free

Reputation and risk of lawsuits

They guarantee all future profits

They are always government employees

5. Revenues generally cause:

A decrease in net assets

An increase in net assets

No change in equity

A decrease in liabilities only

6. Which of the following is normally the most liquid asset?

Inventory

Equipment

Cash

Land

7. If a business owner invests cash into the company, the effect is:

Cash decreases and equity decreases

Cash increases and equity increases

Liability increases and cash decreases

Expense increases and equity decreases

8. Which of the following is not an investing activity?

Purchase of land

Sale of equipment

Purchase of inventory

Purchase of a building

9. The cost principle means assets are generally recorded at:

Estimated market value

Historical exchange price

Replacement cost

Future cash value

10. CPA stands for:

Certified Professional Analyst

Certified Public Accountant

Corporate Public Auditor

Certified Planning Associate

11. Which group is the primary internal user of accounting information?

Investors

Government agencies

Management

Customers

12. Which financial statement reports cash inflows and outflows by category?

Statement of retained earnings

Balance sheet

Statement of cash flows

Income statement

13. The process of determining the dollar amount assigned to an item is called:

Valuation

Articulation

Relevance

Materiality

14. If a company buys equipment on credit, the effect is:

Equipment increases and liability increases

Equipment decreases and cash decreases

Cash increases and revenue increases

Liability decreases and equity decreases

15. Expenses generally cause:

An increase in net assets

A decrease in net assets

A decrease in liabilities only

An increase in contributed capital

16. Which statement explains changes in retained earnings during a period?

Statement of retained earnings

Statement of financial position

Trial balance

Bank reconciliation

17. The standards issued by the IASB are known as:

SOX

IFRS

GAAS

PCAOB Rules

18. The accounting equation is:

Assets = Revenues + Expenses

Assets = Liabilities + Owners’ Equity

Cash = Liabilities C Equity

Revenue = Assets C Liabilities

19. If net income is $72,000 and average owners’ equity is $360,000, return on equity is:

10%

15%

20%

25%

20. Which financial statement reports revenues and expenses for a period of time?

Balance sheet

Income statement

Cash budget

Audit report

21. Which of the following best describes net income?

Assets minus liabilities

Revenues minus expenses

Cash receipts minus cash payments

Contributed capital minus dividends

22. If net income is $50,000 and sales revenue is $500,000, return on sales is:

5%

10%

20%

50%

23. The notes to financial statements often include:

Only totals already shown on the balance sheet

Significant accounting policies

Daily employee time records

Customers’ private passwords

24. Which of the following is a liability?

Notes payable

Land

Sales revenue

Retained earnings

25. Which of the following best describes relevance?

Information can be verified

Information is useful in making decisions

Information always favors lower income

Information is only cash-based

26. Which of the following is not an external user of financial statements?

Supplier

Investor

Creditor

Operations manager

27. Which item appears on the income statement rather than the balance sheet?

Accounts receivable

Revenue

Notes payable

Retained earnings

28. Operating income is generally calculated as:

Gross profit C Operating expenses

Sales C Dividends

Net income + Taxes

Cash from operations C Investing activities

29. A major source of operating cash inflow is:

Owner investment

Borrowing

Sale of goods or services

Sale of land

30. If a company borrows cash from a bank, the effect is:

Cash increases and liability increases

Cash decreases and liability increases

Equity increases and cash increases

Expense decreases and cash increases

31. A company’s economic resources are called:

Expenses

Assets

Revenues

Liabilities

32. Which activity would be classified as a financing cash outflow?

Purchase of land

Payment of dividends

Collection of accounts receivable

Payment for inventory

33. Which item appears on the balance sheet rather than the income statement?

Depreciation expense

Sales revenue

Inventory

Cost of goods sold

34. Managerial accounting focuses primarily on the needs of:

External lenders

Potential stockholders

Internal decision makers

Regulatory agencies only

35. Dividends generally:

Increase net income

Decrease retained earnings

Increase liabilities

Increase revenues

36. Financial accounting focuses primarily on the needs of:

Internal production teams

Investors and creditors

Inventory clerks

Human resources staff

37. Which qualitative characteristic means information can be checked and trusted?

Relevance

Reliability

Timeliness

Conservatism

38. Comparability allows users to:

Ignore accounting differences

Relate information to benchmarks or other companies

Eliminate all judgment

Replace analysis with estimates

39. Conservatism suggests that when in doubt, accountants should avoid:

Understating liabilities

Overstating assets and income

Recording expenses

Preparing notes

40. If current assets are $180,000 and current liabilities are $120,000, the current ratio is:

0.67

1.20

1.50

2.00

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