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WGU C201 OA / WGU C201 BUSINESS ACUMEN
OBJECTIVE ASSESSMENT FINAL EXAM
NEWEST 2025 ACTUAL EXAM COMPLETE 300
QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+(EVERYTHING YOU NEED TO PASS
OA EXAM)
Which two financial statements would be reviewed by potential buyers? - ANSWER-Statement of owner's equity and balance sheet
Depreciation is a non-cash expense on which statement? - ANSWER-statement of cash flows (depreciations)
Which ratio is considered satisfactory liquidity using the
liquidity ratio? - ANSWER-2:1
Which ratio is considered adequate liquidity using the quick
ratio? - ANSWER-1:1
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What does a calculated liquidity ratio of 2.5 indicate? - ANSWER-$2.50 in assets for every $1.00 in liability
Which indicates better performance in inventory turnover? - ANSWER-high inventory turnover ratio
Why do we avoid an over-reliance on borrowing? - ANSWER-to gain leverage
How often do firm's prepare a cash budget? - ANSWER- monthly
What does the income statement examine? - ANSWER-revenue, expense, and profit
This ratio explains the leverage of a firm. - ANSWER-debt ratio
An accounting method that measures the performance and position of a company by recognizing economic events regardless of when cash transactions occur. - ANSWER-accural
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what is used to build the statement of owner's equity. - ANSWER-income statement
what is also used to build the statement of owner's equity - ANSWER-balance sheet ( as part of owner's equity) Frank, chief financial officer for a company, wants to take a look at the summary of expenses, revenues, and profits of the firm for the most recent quarter. He can best find this information by consulting the _____. - ANSWER-income statement
The _____ was created by the Sarbanes-Oxley Act of 2002. - ANSWER-Public Accounting Oversight Board
Which of the following financial statements shows a company's financial position on a particular date? - ANSWER-Balance sheet
Expenses that have been incurred (such as wages) but have yet to be paid are reported on the balance sheet as _____. - ANSWER-accruals
What are some examples of non-cash expenses? - ANSWER- Income taxes, operating costs, cost of goods sold 3 / 4
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Which of the following current assets is NOT included when calculating the acid-test ratio? - ANSWER-inventory
If a firm has a current ratio of 2.5, it means that for every $2.50 in _____ it has $1.00 in _____. - ANSWER-current assets; current liabilities
_____ ratios are designed to evaluate a firm's ability to generate revenues in excess of operating costs and other expenses. - ANSWER-Profitability
All of the following are profitability ratios - ANSWER-net profit margin
gross profit margin
return on equity
What was established in 1973 to promote worldwide consistency in financial reporting practices? - ANSWER-The International Accounting Standards Committee (IASC)
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