WGC C213 FINAL PAPER UPDATED
COMPLETE QUESTIONS AND CORRECT
ANSWERS BUNDLED REVIEW GUIDE
●● Income Statement
Answer: A financial statement that reports a company's revenues and
expenses and resulting net income or net loss for a specific period of
time.
●● Statement of Cash Flows
Answer: Financial statement that reports cash receipts and
disbursements related to a firm's three major activities: operations,
investments, and financing.
●● Notes to the financial statements
Answer: Notes that clarify information presented in the financial
statements and provide additional detail.
●● The company needs to demonstrate its financial position to potential
investors by showing what resources, the organization controls and what
obligation it owes to creditors at a specific point in time which financial
document would best accomplish this objective
Answer: Balance sheet
,●● Balance sheet
Answer: The balance sheet reports the resources of a company which are
its assets. The companies obligation which are its liabilities and the
owners equity at a specific point in time.
●● Income Statement
Answer: The income statement reports net income earned by a company
during a period by showing revenues minus expenses, not the companies
financial position at the point in time
●● Statement of cash flow
Answer: The statement of cash flow reports, cash collected and paid out
through operating investing and financial activities during a period not a
financial position
●● Notes to financial statement
Answer: Notes to financial statements, provide additional information
and discloses about accounting policies, but they do not report assets,
liabilities, and equity directly
●● Auditor Report
Answer: A report prepared by an independent outside auditor stating the
auditor's opinion as to the fairness of the presentation of the financial
position and results of operations and their conformance with generally
accepted accounting principles.
, ●● During an annual board meeting executives want to evaluate how
well the organization performs over the past 12 months by comparing
revenues generated against all expenses and cured during that specific
timeframe which financial report directly addresses this performance
measurement need
Answer: Income statement
●● Income statement
Answer: Income statement reports the amount of net income earned by a
company during a period by showing revenue minus expenses, directly
measuring financial performance overtime
●● Balance sheet
Answer: The balance sheet shows financial position at a specific point in
time with assets, liabilities and equity, but does not measure
performance over a period
●● Statement of cash flow
Answer: The statement of cash flows shows cash movement through
operating investing and financial activities, but does not directly
compare revenues to expenses for performance measurement
●● Auditor report
COMPLETE QUESTIONS AND CORRECT
ANSWERS BUNDLED REVIEW GUIDE
●● Income Statement
Answer: A financial statement that reports a company's revenues and
expenses and resulting net income or net loss for a specific period of
time.
●● Statement of Cash Flows
Answer: Financial statement that reports cash receipts and
disbursements related to a firm's three major activities: operations,
investments, and financing.
●● Notes to the financial statements
Answer: Notes that clarify information presented in the financial
statements and provide additional detail.
●● The company needs to demonstrate its financial position to potential
investors by showing what resources, the organization controls and what
obligation it owes to creditors at a specific point in time which financial
document would best accomplish this objective
Answer: Balance sheet
,●● Balance sheet
Answer: The balance sheet reports the resources of a company which are
its assets. The companies obligation which are its liabilities and the
owners equity at a specific point in time.
●● Income Statement
Answer: The income statement reports net income earned by a company
during a period by showing revenues minus expenses, not the companies
financial position at the point in time
●● Statement of cash flow
Answer: The statement of cash flow reports, cash collected and paid out
through operating investing and financial activities during a period not a
financial position
●● Notes to financial statement
Answer: Notes to financial statements, provide additional information
and discloses about accounting policies, but they do not report assets,
liabilities, and equity directly
●● Auditor Report
Answer: A report prepared by an independent outside auditor stating the
auditor's opinion as to the fairness of the presentation of the financial
position and results of operations and their conformance with generally
accepted accounting principles.
, ●● During an annual board meeting executives want to evaluate how
well the organization performs over the past 12 months by comparing
revenues generated against all expenses and cured during that specific
timeframe which financial report directly addresses this performance
measurement need
Answer: Income statement
●● Income statement
Answer: Income statement reports the amount of net income earned by a
company during a period by showing revenue minus expenses, directly
measuring financial performance overtime
●● Balance sheet
Answer: The balance sheet shows financial position at a specific point in
time with assets, liabilities and equity, but does not measure
performance over a period
●● Statement of cash flow
Answer: The statement of cash flows shows cash movement through
operating investing and financial activities, but does not directly
compare revenues to expenses for performance measurement
●● Auditor report
