1|Page
WGU C213 PA & OA Study Guide Exam | MOST
RECENT EXAM 2026/2027 ACTUAL COMPREHENSIVE
FREQUENTLY MOST TESTED REAL VERIFIED EXAM
QUESTIONS AND VERIFIED SOLUTIONS | ALREADY
GRADED A+ | GUARANTEED SUCCESS!! NEWEST
EXAM!!!
Which category on the statement of cash flows
summarizes cash receipts and payments to owners and
creditors of the company? - Answer-Cash from financing
activities
Where would an investor find a summary of a company's
significant accounting policies? - Answer-In the notes to
financial statements
Which assurance does an external audit report provide for
its readers? - Answer-The company's financial statements
fairly reflect its financial position
Information that can be verified - Answer-Reliable
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Information having to do with the matter at hand - Answer-
Relevant
Information that is important enough to make a difference -
Answer-Material
Information related to recognizing losses as they occur -
Answer-Conservatism
What is consistent with a continual decline in gross profit if
the firm's cost of goods sold remains the same? - Answer-
Continual decrease in sales
Which form of debt should be reported in the long-term
liability category? - Answer-Notes payable expected to be
paid in 18 months
Which values affect the measurement of net income? -
Answer-Operating expenses &
Ordinary gains and losses
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Which items' subtotals are included in a multi-step income
statement? - Answer-Gross profit &
Income from operations
What does accounting focus on? - Answer-The impact a
business's activities have on its overall financial
performance
Which report summarizes cash collections and cash
expenditures from operating, investing, and financing
activities over a period of time? - Answer-Statement of
cash flows
Which users would have a primary concern with an
organization's ability to provide healthcare benefits? -
Answer-Employees
Which benefit does a corporation gain by following
Generally Accepted Accounting Principles (GAPP)? -
Answer-An increase in its compatibility to other companies
Which body regulates a certified public accounting firm's
audit practices when the firm is auditing a large publicly
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traded company? - Answer-The Public Company
Accounting Oversight Board (PACOB)
What has had the most significant impact on Accounting
practices? - Answer-Information technology
What two items of information are revealed on the balance
sheet? - Answer-Ownership and Debt
Which term is defined as the residual in the net assets of a
company? - Answer-Owners equity
Which situation should result in revenue recognition on the
income statement for the year ending 12/31/14 if the firm
is using accrual accounting? - Answer-In 2014, a company
provides services to a customer for which cash will be
collected the next year (2015).
What is a common category in a statement of cash flows?
- Answer-Cash from investing activities
Which cash flow category would include "cash received
from investors"? - Answer-Cash from financing activities
WGU C213 PA & OA Study Guide Exam | MOST
RECENT EXAM 2026/2027 ACTUAL COMPREHENSIVE
FREQUENTLY MOST TESTED REAL VERIFIED EXAM
QUESTIONS AND VERIFIED SOLUTIONS | ALREADY
GRADED A+ | GUARANTEED SUCCESS!! NEWEST
EXAM!!!
Which category on the statement of cash flows
summarizes cash receipts and payments to owners and
creditors of the company? - Answer-Cash from financing
activities
Where would an investor find a summary of a company's
significant accounting policies? - Answer-In the notes to
financial statements
Which assurance does an external audit report provide for
its readers? - Answer-The company's financial statements
fairly reflect its financial position
Information that can be verified - Answer-Reliable
,2|Page
Information having to do with the matter at hand - Answer-
Relevant
Information that is important enough to make a difference -
Answer-Material
Information related to recognizing losses as they occur -
Answer-Conservatism
What is consistent with a continual decline in gross profit if
the firm's cost of goods sold remains the same? - Answer-
Continual decrease in sales
Which form of debt should be reported in the long-term
liability category? - Answer-Notes payable expected to be
paid in 18 months
Which values affect the measurement of net income? -
Answer-Operating expenses &
Ordinary gains and losses
,3|Page
Which items' subtotals are included in a multi-step income
statement? - Answer-Gross profit &
Income from operations
What does accounting focus on? - Answer-The impact a
business's activities have on its overall financial
performance
Which report summarizes cash collections and cash
expenditures from operating, investing, and financing
activities over a period of time? - Answer-Statement of
cash flows
Which users would have a primary concern with an
organization's ability to provide healthcare benefits? -
Answer-Employees
Which benefit does a corporation gain by following
Generally Accepted Accounting Principles (GAPP)? -
Answer-An increase in its compatibility to other companies
Which body regulates a certified public accounting firm's
audit practices when the firm is auditing a large publicly
, 4|Page
traded company? - Answer-The Public Company
Accounting Oversight Board (PACOB)
What has had the most significant impact on Accounting
practices? - Answer-Information technology
What two items of information are revealed on the balance
sheet? - Answer-Ownership and Debt
Which term is defined as the residual in the net assets of a
company? - Answer-Owners equity
Which situation should result in revenue recognition on the
income statement for the year ending 12/31/14 if the firm
is using accrual accounting? - Answer-In 2014, a company
provides services to a customer for which cash will be
collected the next year (2015).
What is a common category in a statement of cash flows?
- Answer-Cash from investing activities
Which cash flow category would include "cash received
from investors"? - Answer-Cash from financing activities
