C213 WGU OBJECTIVE ASSESSMENT UPDATED ACTUAL Exam
Questions and CORRECT Answers | Updated Practice Questions
and Solutions | A+ Verified
Question 1.
Which report summarizes cash collections and cash expenditures from operating,
investing, and financing activities over a period of time?
Correct Answer: Statement of Cash Flows
Question 2.
Which body regulates a certified public accounting firm's audit practices when the firm
is auditing a large publicly traded company?
Correct Answer: The Public Company Accounting Oversight Board (PCAOB)
Question 3.
What is a common category in a statement of cash flows?
Correct Answer: Cash from investing activities
Question 4.
Which cash flow category would include "cash received from investors"?
Correct Answer: Cash from financing activities
Question 5.
Which item is an investing activity?
Correct Answer: Cash payments for purchase of plant assets
Question 6.
What impact does the sale of equipment have on the statement of cash flows?
Correct Answer: Increase in cash from investing activities
Question 7.
What is known about the direct and indirect methods of preparing statements of cash
flow?
Correct Answer: The indirect method is more popular among large U.S.
companies
, Question 8.
Which two actions do internal auditors perform to assist in maintaining the integrity of
financial statements?
Correct Answer: They search for and investigate fraud and They review
financial records and internal controls.
• What is a cost that will change in the future based upon the decision made? -
✓✓Differential cost
Question 9.
Which two costs are included when calculating inventory costs?
Correct Answer: Direct labor and overhead
Question 10.
Which two examples are period costs?
Correct Answer: Admin and Selling Expenses
Question 11.
Which category of ABC activities are machine setup and material movement costs
associated with?
Correct Answer: Batch-level activities
Question 12.
A company manufactures custom-built wooden bookshelves. Which two costs would the
company classify as period costs?
Correct Answer: Salary cost of the receptionist and Advertising Costs
Question 13.
In which scenario would activity-based costing be more appropriate than traditional
costing?
Correct Answer: A company produces five different products. The products are
highly differentiated and have significantly different demands for their use of
overhead costs.
Question 14.
Which two concepts are studied in cost-volume-profit analysis?
Correct Answer: Profits and Levels of Activity
Questions and CORRECT Answers | Updated Practice Questions
and Solutions | A+ Verified
Question 1.
Which report summarizes cash collections and cash expenditures from operating,
investing, and financing activities over a period of time?
Correct Answer: Statement of Cash Flows
Question 2.
Which body regulates a certified public accounting firm's audit practices when the firm
is auditing a large publicly traded company?
Correct Answer: The Public Company Accounting Oversight Board (PCAOB)
Question 3.
What is a common category in a statement of cash flows?
Correct Answer: Cash from investing activities
Question 4.
Which cash flow category would include "cash received from investors"?
Correct Answer: Cash from financing activities
Question 5.
Which item is an investing activity?
Correct Answer: Cash payments for purchase of plant assets
Question 6.
What impact does the sale of equipment have on the statement of cash flows?
Correct Answer: Increase in cash from investing activities
Question 7.
What is known about the direct and indirect methods of preparing statements of cash
flow?
Correct Answer: The indirect method is more popular among large U.S.
companies
, Question 8.
Which two actions do internal auditors perform to assist in maintaining the integrity of
financial statements?
Correct Answer: They search for and investigate fraud and They review
financial records and internal controls.
• What is a cost that will change in the future based upon the decision made? -
✓✓Differential cost
Question 9.
Which two costs are included when calculating inventory costs?
Correct Answer: Direct labor and overhead
Question 10.
Which two examples are period costs?
Correct Answer: Admin and Selling Expenses
Question 11.
Which category of ABC activities are machine setup and material movement costs
associated with?
Correct Answer: Batch-level activities
Question 12.
A company manufactures custom-built wooden bookshelves. Which two costs would the
company classify as period costs?
Correct Answer: Salary cost of the receptionist and Advertising Costs
Question 13.
In which scenario would activity-based costing be more appropriate than traditional
costing?
Correct Answer: A company produces five different products. The products are
highly differentiated and have significantly different demands for their use of
overhead costs.
Question 14.
Which two concepts are studied in cost-volume-profit analysis?
Correct Answer: Profits and Levels of Activity
