C213 WGU OA Questions With Correct Solutions

C213 WGU OA Prep The ability a company has to pay its debts in the short run is its - Answer-Liquidity Which of the following is a measure of the liquid position of a corporation? - Answer-Debt ratio Which of the following ratios is used to measure a firm's leverage? - Answer-Debt Ratio Which of the following ratios is used to measure the profit earned on each dollar invested in a firm? - Answer-Return on Equity The emphasis in financial accounting is on which of the following external user groups? - Answer-Investors and creditors The primary internal group that uses accounting information is - Answer-Management Internal reports are generally used by - Answer-Management Which of the following is NOT an external user of financial information? - Answer-Management Which of the following is NOT true of the Financial Accounting Standards Board (FASB)? - Answer-It is a government agency Generally accepted accounting principles are - Answer-Developed by accounting rule makers The initials GAAP stand for - Answer-Generally Accepted Accounting Principles The current standard-setting board for accounting in the private sector is the - Answer-Financial Accounting Standards Board (FASB) The organization that develops worldwide accounting standards is the - Answer-International Accounting Standards Board (IASB) The initials CPA stand for - Answer-Certified Public Accountant Which of the following is NOT a service typically provided by large public accounting firms? - Answer-Making management decisions Standards established by the International Accounting Standards Board are referred to as - Answer-International Financial Reporting Standards