WGU C213 Accounting for Decision Makers Final Exam (Latest 2023\/ 2024) | Questions and Verified Answers | 100% Correct<\/p>\n\n\n\n
WGU C213 Accounting for Decision Makers
Final Exam (Latest 2023\/ 2024) | Questions
and Verified Answers | 100% Correct
Q: Given the following information, compute operating income –
Cost of Goods Sold $2,000
Extraordinary Item -170
Income Taxes 350
Interest Expense 200
Operating Expenses 1,500
Sales 5,500
Answer:
Correct Answer $2,000
$5,500 – $2,000 – $1,500 = $2,000
Q: Given the following information, compute comprehensive income –
Extraordinary Loss -80
Income Taxes 150
Interest Expense 100
Operating Income 1,500
Unrealized Gain not included in Net Income 120
Answer:
Correct Answer $1,290
$1,500 – $150 – $100 – $80 +120 = $1,290
Q: The proper order on an income statement for the various measures of income is –
Answer:
Correct Answer<\/p>\n\n\n\n
gross profit, operating income, income from continuing operations, net in- come, comprehensive
income
Q: The following information was taken from the records of Tellers Corporation for the month
ended December 31, 2012:
Advertising expense
$20,625
Income tax expense
13,095
Accounts payable
13,450
Dividends paid
14,125
Retained earnings (12\/1\/12)
57,860
Consulting fees revenue
93,550
Rent expense
11,728
Supplies expense
16,917
Given the above information, net income?
Answer:
Correct Answer $31,185
Net income:$93,550 – $20,625 – $13,095 – $11,728 – $16,917 = $31,185
Q: When a company determines to get out of a specific line of business?
Answer:
Correct Answer
Revenues and expenses from that line of business are excluded from the company’s recurring
revenues and expenses when preparing an income state- ment.
Q: The following information was taken from the records of Tellers Corporation for the month
ended December 31, 2012:<\/p>\n\n\n\n
Advertising expense
$20,625
Income tax expense
13,095
Accounts payable
13,450
Dividends paid
14,125
Retained earnings (12\/1\/12)
57,860
Consulting fees revenue
93,550
Rent expense
11,728
Supplies expense
16,917
If Tellers has 2,100 shares of stock outstanding, earnings per share is approximate- ly?
Answer:
Correct Answer $14.85
Net income:
$93,550 – $20,625 – $13,095 – $11,728 – $16,917 = $31,185
Earnings per share:
$31,185 \/ 2,100 shares = $14.85
Q: Earnings per share is equal to Correct Answer
Answer:
Net income divided by total number of shares of stock outstanding income divided by total
number of shares of stock outstanding
Q: Which of the following is a revenue generating activity?
Answer:<\/p>\n\n\n\n
Paying rent
Borrowing money from a bank
Selling capital stock
Q: For a gain or loss to be classified as extraordinary, it must be what?
Answer:
Correct Answer
both unusual and infrequent
Q: With a multiple-step income statement all revenues are grouped together, all expenses are
grouped together, and net income is computed as the difference between the two. True\/False
Answer:
False
Q: Which of the following is NOT an acceptable basis for the recognition of expenses?
Answer:
Systematic and rational allocation
Direct matching
*Cash disbursement
Immediate recognition
Q: The revenue principle states that revenue should be recognized at a point when
Answer:
Correct Answer
an exchange transaction involving goods and services has occurred and
the earnings process is essentially complete.
Q: What is an application of the principle of systematic and rational allocation?
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