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C213 / C 213 Pre- Assessment (Latest Update 2025 / 2026) Accounting for Decision Makers | Practice Questions and Answers | Grade A | 100% Correct - WGU
Question:
A company is experiencing an increase in their bad debt expense.
Which change in credit policy would cause this increase?
Answer:
Credit limits were increased for all customers.
Question:
Which benefit does a corporation gain by following Generally Accepted Accounting Principles (GAAP)?
Answer:
An increase in its comparability to other companies
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Question:
A company has projected the following sales for the spring quarter of 2014:
April $200,000 May $250,000 June $275,000 65% of all sales are paid for with cash. The remainder is on credit.
The pattern for credit receivables collections are:
Month of Sale 60% Month After Sale 30% Second Month After Sale 10% What are the forecasted cash collections for the month of June?
Answer:
$269,750
Question:
What does it mean if a company has a debt ratio of 101.5%?
Answer:
The company has 1.5% more total liabilities than total assets.
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Question:
A company budgeted the following purchases for raw materials:
Month January February March April May June July Budget $10,000 $20,000 $25,000 $22,000 $27,000 $30,000 $24,000 The company has a policy of paying for 40% of the purchases in the month of purchase, 35% in the month following the purchase, and 25% in the second month following the purchase.
Based on this information, what are the budgeted cash disbursements for May?
Answer:
$24,750
Question:
What has had the most significant impact on accounting practices?
Answer:
Information technology
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Question:
A company plans to purchase inventory for the second half of 2014 as follows:
July $100,000 August $75,000 September $225,000 October $125,000 November $250,000 December $30,000
They usually pay 50% of inventory purchases in the month of purchase, 35% in the following month, and 15% in the second month.
Based on this information, what are the forecasted total 2014 cash payments for inventory purchased in the second half of 2014?
Answer:
$752,500
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