WGU C213. PRE-Assessment: Accounting For Decision Makers Pvac
1. What does accounting focus on? O The impact a business's activities have on its overall financial
performance
O The impact a business's activities have on
its public image
O The impact a business's activities have on
its relationship with customers
O The impact a business's activities have on
the environment
O The impact a business's activities have on
its overall financial performance
WGU C213. PRE-Assessment: Accounting For Decision Makers Pvac
,WGU C213. PRE-Assessment: Accounting For Decision Makers Pvac
2. Which report summarizes cash collections O Statement of Cash Flows
and cash expenditures from operating,
investing, and financing activities over a
period of time?
O Statement of Cash Flows
O Cash flow schedule
O Summary of cash receipts
O Cash receipts and disbursements
3. Which users would have a primary O Employees
concern with an organization's ability to
provide healthcare benefits?
O Suppliers
O Employees
O Vendors
O Competitors
4. Which benefit does a corporation gain by O An increase in its comparability to other companies
following Generally Accepted Accounting
Principals (GAAP)?
O An increase in the amount of assets it
reports
O A decrease in its income tax obligations
O A decrease in the amount of net income it
reports
O An increase in its comparability to other
companies
5. Which body regulates a certified public O The Public Company Accounting Oversight Board (PCAOB)
accounting firm's audit practices when the
firm is auditing a large publicly traded
company?
O Another certified accounting firm (CPA)
O The Public Company Accounting
Oversight Board (PCAOB)
O The internal revenue service (IRS)
O The financial accounting standards board
(FASB)
6. What has had the most significant impact O Information Technology
on accounting practices?
O New product innovations
O Mobile computing
O Certification requirements
O Information Technology
WGU C213. PRE-Assessment: Accounting For Decision Makers Pvac
, WGU C213. PRE-Assessment: Accounting For Decision Makers Pvac
7. What two items of information are O Debt
revealed on the balance sheet? O Ownership
Choose 2 answers
O Costs
O Revenues
O Debt
O Expenses
O Ownership
8. Which term is defined as the residual O Owner's Equity
interest in the net assets of a company?
O Owner's Equity
O Revenues
O Operating Income
O Liabilities
9. A corporation has total liabilities of $300 Assets = Liabilities + Equity
million, total owners' equity of $100 million, x + 50m = 300m + 100m
and current assets of $50 million. Solving for x = 350m
What is the value of the firm's long-term O $350 million
assets?
O $250 million
O $350 million
O $400 million
O $450 million
10. Which situation should result in revenue O In 2014, a company provide services to a customer for cash
recognition on the income statement for the will be collected the next year (2015)
year ending 12/31/14 if the firm is using
accrual-basis accounting?
O In 2014, a company collects cash from a
customer for services it will provide next
year (2015)
O In 2014, a company collects cash from a
customer for services it provided in the
previous year (2013)
O In 2014, a company enters into a contract
whereby it agrees to provide services to a
customer next year in (2015)
O In 2014, a company provide services to a
customer for cash will be collected the next
year (2015)
WGU C213. PRE-Assessment: Accounting For Decision Makers Pvac
1. What does accounting focus on? O The impact a business's activities have on its overall financial
performance
O The impact a business's activities have on
its public image
O The impact a business's activities have on
its relationship with customers
O The impact a business's activities have on
the environment
O The impact a business's activities have on
its overall financial performance
WGU C213. PRE-Assessment: Accounting For Decision Makers Pvac
,WGU C213. PRE-Assessment: Accounting For Decision Makers Pvac
2. Which report summarizes cash collections O Statement of Cash Flows
and cash expenditures from operating,
investing, and financing activities over a
period of time?
O Statement of Cash Flows
O Cash flow schedule
O Summary of cash receipts
O Cash receipts and disbursements
3. Which users would have a primary O Employees
concern with an organization's ability to
provide healthcare benefits?
O Suppliers
O Employees
O Vendors
O Competitors
4. Which benefit does a corporation gain by O An increase in its comparability to other companies
following Generally Accepted Accounting
Principals (GAAP)?
O An increase in the amount of assets it
reports
O A decrease in its income tax obligations
O A decrease in the amount of net income it
reports
O An increase in its comparability to other
companies
5. Which body regulates a certified public O The Public Company Accounting Oversight Board (PCAOB)
accounting firm's audit practices when the
firm is auditing a large publicly traded
company?
O Another certified accounting firm (CPA)
O The Public Company Accounting
Oversight Board (PCAOB)
O The internal revenue service (IRS)
O The financial accounting standards board
(FASB)
6. What has had the most significant impact O Information Technology
on accounting practices?
O New product innovations
O Mobile computing
O Certification requirements
O Information Technology
WGU C213. PRE-Assessment: Accounting For Decision Makers Pvac
, WGU C213. PRE-Assessment: Accounting For Decision Makers Pvac
7. What two items of information are O Debt
revealed on the balance sheet? O Ownership
Choose 2 answers
O Costs
O Revenues
O Debt
O Expenses
O Ownership
8. Which term is defined as the residual O Owner's Equity
interest in the net assets of a company?
O Owner's Equity
O Revenues
O Operating Income
O Liabilities
9. A corporation has total liabilities of $300 Assets = Liabilities + Equity
million, total owners' equity of $100 million, x + 50m = 300m + 100m
and current assets of $50 million. Solving for x = 350m
What is the value of the firm's long-term O $350 million
assets?
O $250 million
O $350 million
O $400 million
O $450 million
10. Which situation should result in revenue O In 2014, a company provide services to a customer for cash
recognition on the income statement for the will be collected the next year (2015)
year ending 12/31/14 if the firm is using
accrual-basis accounting?
O In 2014, a company collects cash from a
customer for services it will provide next
year (2015)
O In 2014, a company collects cash from a
customer for services it provided in the
previous year (2013)
O In 2014, a company enters into a contract
whereby it agrees to provide services to a
customer next year in (2015)
O In 2014, a company provide services to a
customer for cash will be collected the next
year (2015)
WGU C213. PRE-Assessment: Accounting For Decision Makers Pvac
