WGU C213 Pre-assessment
(Accounting) 2026 Test
What does accounting focus on?
- The impact a business's activities have on its relationships with customers
- The impact a business's activities have on the environment.
- The impact a business's activities have on its public image.
- The impact a business's activities have on its overall financial performance. -
ANSWER-The impact a business's activities on its overall financial performance.
Which report summarizes cash collections and cash expenditures from operating,
investing, and financing activities over a period of time?
- Cash receipts and disbursements sheet
- Cash flow schedule
- Summary of cash receipts
- Statement of cash flows - ANSWER-Statement of cash flows
Which users would have a primary concern with an organization's ability to provide
healthcare benefits?
- Competitors
- Employees
- Vendors
- Suppliers - ANSWER-Employees
Which benefit does a corporation gain by following Generally Accepted Accounting
Principles (GAAP)?
- A decrease in its income tax obligations
- 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 - ANSWER-An increase in its
comparability to other companies.
Which body regulates a certified public accounting firm's audit practices when the firm is
auditing a large publicly traded company?
- The Public Company Accounting Oversight Board (PCAOB)
- The Financial Accounting Standards Board (FASB)
- Another certified public accounting firm (CPA)
- The Internal Revenue Service (IRS) - ANSWER-The Public Company Accounting
Oversight Board (PCAOB)
, 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 interest in the net assets of a company? -
ANSWER-Owners' equity
A corporation has a 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? -
ANSWER-$350 Million. Combine the liabilities with assets.
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? - ANSWER-In 2014,
a company provides services to a customer for which cash will be collected the next
year (2015).
What is known about the direct and indirect methods of preparing statements of cash
flows?
- The direct method is more popular among large US companies
- The indirect method is more popular among large US companies
- Both methods have the same popularity among large US companies
- Neither method is very popular among large US companies - ANSWER-The indirect
method is more popular among large U.S. companies.
A company's statement of cash flows includes the following cash transactions:
Sales 1,250,000
Inventory Purchase -750,000
Property and Equipment Purchase -270,000
Interest Payment on Long-Term Debt -25,000
Payment of Wages -315,000
Payment of Rent -40,000
Borrowing Long-Term Debt
200,000
Payment of Cash Dividends -15,000
Repurchase of Treasury Stock -40,000
Total Cash Flows -5,000
Assuming the company uses US GAAP standards, what is the total cash flow from
financing activities?
$175,000
$160,000
$145,000
$120,000 - ANSWER-145,000. 200,000 - 15,000 - 40,000 = 145,000.
(Accounting) 2026 Test
What does accounting focus on?
- The impact a business's activities have on its relationships with customers
- The impact a business's activities have on the environment.
- The impact a business's activities have on its public image.
- The impact a business's activities have on its overall financial performance. -
ANSWER-The impact a business's activities on its overall financial performance.
Which report summarizes cash collections and cash expenditures from operating,
investing, and financing activities over a period of time?
- Cash receipts and disbursements sheet
- Cash flow schedule
- Summary of cash receipts
- Statement of cash flows - ANSWER-Statement of cash flows
Which users would have a primary concern with an organization's ability to provide
healthcare benefits?
- Competitors
- Employees
- Vendors
- Suppliers - ANSWER-Employees
Which benefit does a corporation gain by following Generally Accepted Accounting
Principles (GAAP)?
- A decrease in its income tax obligations
- 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 - ANSWER-An increase in its
comparability to other companies.
Which body regulates a certified public accounting firm's audit practices when the firm is
auditing a large publicly traded company?
- The Public Company Accounting Oversight Board (PCAOB)
- The Financial Accounting Standards Board (FASB)
- Another certified public accounting firm (CPA)
- The Internal Revenue Service (IRS) - ANSWER-The Public Company Accounting
Oversight Board (PCAOB)
, 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 interest in the net assets of a company? -
ANSWER-Owners' equity
A corporation has a 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? -
ANSWER-$350 Million. Combine the liabilities with assets.
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? - ANSWER-In 2014,
a company provides services to a customer for which cash will be collected the next
year (2015).
What is known about the direct and indirect methods of preparing statements of cash
flows?
- The direct method is more popular among large US companies
- The indirect method is more popular among large US companies
- Both methods have the same popularity among large US companies
- Neither method is very popular among large US companies - ANSWER-The indirect
method is more popular among large U.S. companies.
A company's statement of cash flows includes the following cash transactions:
Sales 1,250,000
Inventory Purchase -750,000
Property and Equipment Purchase -270,000
Interest Payment on Long-Term Debt -25,000
Payment of Wages -315,000
Payment of Rent -40,000
Borrowing Long-Term Debt
200,000
Payment of Cash Dividends -15,000
Repurchase of Treasury Stock -40,000
Total Cash Flows -5,000
Assuming the company uses US GAAP standards, what is the total cash flow from
financing activities?
$175,000
$160,000
$145,000
$120,000 - ANSWER-145,000. 200,000 - 15,000 - 40,000 = 145,000.
