WGU C213 Final Exam Accounting for Decision Makers

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WGU C213 Final Exam Accounting for Decision Makers Questions and Answers

• The financial statement that reports resources owned, the obligations

to transfer resources to other organizations, and the claims by the entity's owners is known as the

• Income statement
• Statement of retained earnings
• Balance sheet
• Statement of cash flows ANS c. Balance sheet

• Another name for the balance sheet is the
• Statement of cash flows
• Statement of earnings
• Statement of financial position
• Retained earnings statement ANS c. Statement of financial position

• Economic resources that are owned or controlled by an enterprise are called
• Assets
• Liabilities
• Revenues
• Gains ANS a. Assets 1 / 4

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• Which of the following types of accounts are NOT found on the balance

sheet?

• Revenues
• Assets
• Liabilities
• Owners' equity ANS a. Revenues

• Which of the following is generally considered to be an asset?
• Notes payable
• Mortgage payable
• Accounts receivable
• Unearned revenue ANS c. Accounts receivable

• Which of the following accounts is NOT an asset account?
• Equipment
• Accounts Receivable
• Accounts Payable
• Supplies ANS c. Accounts Payable

• Which of the following generally is NOT considered to be a liability?
• Notes payable
• Taxes payable
• Inventory
• Accounts payable ANS c. Inventory 2 / 4

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• An enterprise's obligations to pay cash or other economic resources to

others are called

• Liabilities
• Expenses
• Losses
• Assets ANS d. Assets

• Which of the following is generally considered to be a liability?
• Accounts receivable
• Capital stock
• Notes payable
• Retained earnings ANS c. Notes payable

• Which of the following types of accounts show how resources came into

a firm?

• Liabilities
• Owners' equity
• Assets
• Both liabilities and owners' equity ANS d. Both liabilities and owners' equity

• A business owned by one person is called a
• Nonprofit organization
• Partnership
• Corporation
• Sole proprietorship ANS D. Sole proprietorship 3 / 4

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• A business owned by two or more individuals or entities is called a(n)
• Nonprofit organization
• Partnership
• Institution
• Sole proprietorship ANS B. Partnership

• Owners of a corporation are referred to as
• Debtors
• Partners
• Stockholders
• Creditors ANS C. Stockholders

• Distributions by a corporation to its stockholders are called
• Dividends
• Retained earnings
• Income
• Withdrawals ANS A. Dividends

• Which of the following usually is NOT considered to be an owners' equity

account? A. Capital stock

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