WGU C213 PA & OA Study Guide Verified Answers.2024

WGU C213 PA & OA Study Guide Verified Answers.2024 61. Which cash flow category would include "cash received from investors"- : Cash from financing activities 62. Which item is an investing activity: Cash payments for purchase of plant assets 63. What impact does the sale of equipment have on the statement of cash flows: Increase in cash from investing activities 64. What is known about the direct and indirect methods of preparing statements of cash flow: The indirect method is more popular among large U.S. companies 65. Assuming the company uses US GAAP standards, what is the total cash flow from financing activities, given the following: Borrowing is 200,000; Payment of Dividends is -15,000; Repurchase Stock is -40,000; Interest Payment on Long-Term Debt -25,000: $145,000 66. Which two examples represent financial statement errors: The accounting department miscalculates the payroll tax due at year-end, resulting in an inaccurate liability & The accountant unintentionally records amounts as revenue that were prepaid by customers but not yet earned 67. Which internal control is intended to ensure that a company does not mistakenly pay a supplier for an invoice that includes more items than were actually received: The inventory department counts and inspects items as received and forwards the receiving record to accounts payable 68. What are two common reasons for managers to manipulate reported earnings: They are feeling pressured to meet internal sales goals; They are preparing to qualify for a bank loan