C213 COMPREHENSIVE EXAM PREP
QUESTIONS AND SOLUTIONS VERIFIED
STUDY RESOURCE
●● What was the 2012 net profit amount if the 2013 pro-forma net profit
of $187,000 was based on a 22% increase?
$228,140
$182,975
$153,279
$145,860
Answer: $153,279
●● Which report summarizes cash collections and cash expenditures
from operating, investing, and financing activities over a period of time?
Statement of cash flows
Summary of cash receipts
Cash flow schedule
Cash receipts and disbursements sheet
Answer: Statement of cash flows
,●● Which users would have a primary concern with an organization's
ability to provide healthcare benefits?
Competitors
Vendors
Employees
Suppliers
Answer: Employees
●● Which benefit does a corporation gain by following Generally
Accepted Accounting Principles (GAAP)?
A decrease in the amount of net income it reports
An increase in its comparability to other companies
An increase in the amount of assets it reports
A decrease in its income tax obligations
Answer: An increase in its comparability to other companie
●● Which body regulates a certified public accounting firm's audit
practices when the firm is auditing a large publicly traded company?
The Financial Accounting Standards Board (FASB)
Another certified public accounting (CPA) firm
,The Internal Revenue Service (IRS)
The Public Company Accounting Oversight Board (PCAOB)
Answer: The Public Company Accounting Oversight Board (PCAOB)
●● What has had the most significant impact on accounting practices?
Certification requirements
Mobile computing
Information technology
New product innovations
Answer: Information technology
●● What two items of information are revealed on the balance sheet?
Choose 2 answers
Debt
Revenues
Ownership
Costs
Expenses
Answer: Revenues
Expenses
, ●● Which term is defined as the residual interest in the net assets of a
company?
Liabilities
Owners' equity
Revenues
Operating income
Answer: Owners' equity
●● A corporation has total liabilities of $300 million, total owners'
equity of $100 million, and current assets of $50 million.What is the
value of the firm's long-term assets?
$250 million
$350 million
$400 million
$450 million
Answer: $350 million
●● Which situation should result in revenue recognition on the income
statement for the year ending 12/31/14 if the firm is using accrual-basis
accounting?
QUESTIONS AND SOLUTIONS VERIFIED
STUDY RESOURCE
●● What was the 2012 net profit amount if the 2013 pro-forma net profit
of $187,000 was based on a 22% increase?
$228,140
$182,975
$153,279
$145,860
Answer: $153,279
●● Which report summarizes cash collections and cash expenditures
from operating, investing, and financing activities over a period of time?
Statement of cash flows
Summary of cash receipts
Cash flow schedule
Cash receipts and disbursements sheet
Answer: Statement of cash flows
,●● Which users would have a primary concern with an organization's
ability to provide healthcare benefits?
Competitors
Vendors
Employees
Suppliers
Answer: Employees
●● Which benefit does a corporation gain by following Generally
Accepted Accounting Principles (GAAP)?
A decrease in the amount of net income it reports
An increase in its comparability to other companies
An increase in the amount of assets it reports
A decrease in its income tax obligations
Answer: An increase in its comparability to other companie
●● Which body regulates a certified public accounting firm's audit
practices when the firm is auditing a large publicly traded company?
The Financial Accounting Standards Board (FASB)
Another certified public accounting (CPA) firm
,The Internal Revenue Service (IRS)
The Public Company Accounting Oversight Board (PCAOB)
Answer: The Public Company Accounting Oversight Board (PCAOB)
●● What has had the most significant impact on accounting practices?
Certification requirements
Mobile computing
Information technology
New product innovations
Answer: Information technology
●● What two items of information are revealed on the balance sheet?
Choose 2 answers
Debt
Revenues
Ownership
Costs
Expenses
Answer: Revenues
Expenses
, ●● Which term is defined as the residual interest in the net assets of a
company?
Liabilities
Owners' equity
Revenues
Operating income
Answer: Owners' equity
●● A corporation has total liabilities of $300 million, total owners'
equity of $100 million, and current assets of $50 million.What is the
value of the firm's long-term assets?
$250 million
$350 million
$400 million
$450 million
Answer: $350 million
●● Which situation should result in revenue recognition on the income
statement for the year ending 12/31/14 if the firm is using accrual-basis
accounting?
