1/27/26, 8:17 AM WGU C213 PA & OA Study Guide Exam comprehensive questions | FREQUENTLY MOST TESTED QUESTIONS AND VERIFIED …
WGU C213 PA & OA Study Guide Exam
comprehensive questions | FREQUENTLY MOST
TESTED QUESTIONS AND VERIFIED SOLUTIONS
@ 2026
Save
Terms in this set (246)
What does accounting focus on? The impact a business's activities have on its overall
financial performance
Which report summarizes cash Statement of cash flows
collections and cash expenditures
from operating, investing, and
financing activities over a period of
time?
Which users would have a primary Employees
concern with an organization's ability
to provide healthcare benefits?
Which benefit does a corporation An increase in its compatibility to other companies
gain by following Generally
Accepted Accounting Principles
(GAPP)?
https://quizlet.com/1135799605/wgu-c213-pa-oa-study-guide-exam-comprehensive-questions-frequently-most-tested-questions-and-verified-solutions… 1/32
,1/27/26, 8:17 AM WGU C213 PA & OA Study Guide Exam comprehensive questions | FREQUENTLY MOST TESTED QUESTIONS AND VERIFIED …
Which body regulates a certified The Public Company Accounting Oversight Board
public accounting firm's audit (PACOB)
practices when the firm is auditing a
large publicly traded company?
What has had the most significant Information technology
impact on Accounting practices?
What two items of information are Ownership and Debt
revealed on the balance sheet?
Which term is defined as the residual Owners equity
in the net assets of a company?
Which situation should result in In 2014, a company provides services to a customer
revenue recognition on the income for which cash will be collected the next year
statement for the year ending (2015).
12/31/14 if the firm is using accrual
accounting?
Which category on the statement of Cash from financing activities
cash flows summarizes cash receipts
and payments to owners and
creditors of the company?
Where would an investor find a In the notes to financial statements
summary of a company's significant
accounting policies?
Which assurance does an external The company's financial statements fairly reflect its
audit report provide for its readers? financial position
Information that can be verified Reliable
https://quizlet.com/1135799605/wgu-c213-pa-oa-study-guide-exam-comprehensive-questions-frequently-most-tested-questions-and-verified-solutions… 2/32
,1/27/26, 8:17 AM WGU C213 PA & OA Study Guide Exam comprehensive questions | FREQUENTLY MOST TESTED QUESTIONS AND VERIFIED …
Information having to do with the Relevant
matter at hand
Information that is important enough Material
to make a difference
Information related to recognizing Conservatism
losses as they occur
What is consistent with a continual Continual decrease in sales
decline in gross profit if the firm's
cost of goods sold remains the
same?
Which form of debt should be Notes payable expected to be paid in 18 months
reported in the long-term liability
category?
Which values affect the Operating expenses &
measurement of net income? Ordinary gains and losses
Which items' subtotals are included Gross profit &
in a multi-step income statement? Income from operations
What is a common category in a Cash from investing activities
statement of cash flows?
Which cash flow category would Cash from financing activities
include "cash received from
investors"?
Which item is an investing activity? Cash payments for purchase of plant assets
https://quizlet.com/1135799605/wgu-c213-pa-oa-study-guide-exam-comprehensive-questions-frequently-most-tested-questions-and-verified-solutions… 3/32
, 1/27/26, 8:17 AM WGU C213 PA & OA Study Guide Exam comprehensive questions | FREQUENTLY MOST TESTED QUESTIONS AND VERIFIED …
What impact does the sale of Increase in cash from investing activities
equipment have on the statement of
cash flows?
What is known about the direct and The indirect method is more popular among large
indirect methods of preparing U.S. companies
statements of cash flow?
Which internal control is intended to The inventory department counts and inspects
ensure that a company does not items as received and forwards the receiving
mistakenly pay a supplier for an record to accounts payable.
invoice that includes more items than
were actually received?
What are common reasons for Pressure to meet internal sales goals &
managers to manipulate reported Preparing to qualify for a bank loan
earnings?
Which requirements must accounting Firms must not provide certain non-audit services
firms that audit public companies to audit clients, such as management functions or
meet under the Sarbanes-Oxley Act? legal services. &
Firms must report to and be retained by the audit
committee rather than the CFO or other company
management.
Which actions do internal auditors They search for and investigate fraud.
perform to assist in maintaining the &
integrity of financial statements? They review financial records and internal controls.
What is a significant role of the U.S. They ensure that financial statement users are
Securities and Exchange Commission provided with reliable information to use in
(SEC) in financial reporting? decision making
https://quizlet.com/1135799605/wgu-c213-pa-oa-study-guide-exam-comprehensive-questions-frequently-most-tested-questions-and-verified-solutions… 4/32
WGU C213 PA & OA Study Guide Exam
comprehensive questions | FREQUENTLY MOST
TESTED QUESTIONS AND VERIFIED SOLUTIONS
@ 2026
Save
Terms in this set (246)
What does accounting focus on? The impact a business's activities have on its overall
financial performance
Which report summarizes cash Statement of cash flows
collections and cash expenditures
from operating, investing, and
financing activities over a period of
time?
Which users would have a primary Employees
concern with an organization's ability
to provide healthcare benefits?
Which benefit does a corporation An increase in its compatibility to other companies
gain by following Generally
Accepted Accounting Principles
(GAPP)?
https://quizlet.com/1135799605/wgu-c213-pa-oa-study-guide-exam-comprehensive-questions-frequently-most-tested-questions-and-verified-solutions… 1/32
,1/27/26, 8:17 AM WGU C213 PA & OA Study Guide Exam comprehensive questions | FREQUENTLY MOST TESTED QUESTIONS AND VERIFIED …
Which body regulates a certified The Public Company Accounting Oversight Board
public accounting firm's audit (PACOB)
practices when the firm is auditing a
large publicly traded company?
What has had the most significant Information technology
impact on Accounting practices?
What two items of information are Ownership and Debt
revealed on the balance sheet?
Which term is defined as the residual Owners equity
in the net assets of a company?
Which situation should result in In 2014, a company provides services to a customer
revenue recognition on the income for which cash will be collected the next year
statement for the year ending (2015).
12/31/14 if the firm is using accrual
accounting?
Which category on the statement of Cash from financing activities
cash flows summarizes cash receipts
and payments to owners and
creditors of the company?
Where would an investor find a In the notes to financial statements
summary of a company's significant
accounting policies?
Which assurance does an external The company's financial statements fairly reflect its
audit report provide for its readers? financial position
Information that can be verified Reliable
https://quizlet.com/1135799605/wgu-c213-pa-oa-study-guide-exam-comprehensive-questions-frequently-most-tested-questions-and-verified-solutions… 2/32
,1/27/26, 8:17 AM WGU C213 PA & OA Study Guide Exam comprehensive questions | FREQUENTLY MOST TESTED QUESTIONS AND VERIFIED …
Information having to do with the Relevant
matter at hand
Information that is important enough Material
to make a difference
Information related to recognizing Conservatism
losses as they occur
What is consistent with a continual Continual decrease in sales
decline in gross profit if the firm's
cost of goods sold remains the
same?
Which form of debt should be Notes payable expected to be paid in 18 months
reported in the long-term liability
category?
Which values affect the Operating expenses &
measurement of net income? Ordinary gains and losses
Which items' subtotals are included Gross profit &
in a multi-step income statement? Income from operations
What is a common category in a Cash from investing activities
statement of cash flows?
Which cash flow category would Cash from financing activities
include "cash received from
investors"?
Which item is an investing activity? Cash payments for purchase of plant assets
https://quizlet.com/1135799605/wgu-c213-pa-oa-study-guide-exam-comprehensive-questions-frequently-most-tested-questions-and-verified-solutions… 3/32
, 1/27/26, 8:17 AM WGU C213 PA & OA Study Guide Exam comprehensive questions | FREQUENTLY MOST TESTED QUESTIONS AND VERIFIED …
What impact does the sale of Increase in cash from investing activities
equipment have on the statement of
cash flows?
What is known about the direct and The indirect method is more popular among large
indirect methods of preparing U.S. companies
statements of cash flow?
Which internal control is intended to The inventory department counts and inspects
ensure that a company does not items as received and forwards the receiving
mistakenly pay a supplier for an record to accounts payable.
invoice that includes more items than
were actually received?
What are common reasons for Pressure to meet internal sales goals &
managers to manipulate reported Preparing to qualify for a bank loan
earnings?
Which requirements must accounting Firms must not provide certain non-audit services
firms that audit public companies to audit clients, such as management functions or
meet under the Sarbanes-Oxley Act? legal services. &
Firms must report to and be retained by the audit
committee rather than the CFO or other company
management.
Which actions do internal auditors They search for and investigate fraud.
perform to assist in maintaining the &
integrity of financial statements? They review financial records and internal controls.
What is a significant role of the U.S. They ensure that financial statement users are
Securities and Exchange Commission provided with reliable information to use in
(SEC) in financial reporting? decision making
https://quizlet.com/1135799605/wgu-c213-pa-oa-study-guide-exam-comprehensive-questions-frequently-most-tested-questions-and-verified-solutions… 4/32
