HOSMERIT
WGU C213 PRE ASSESSMENT EXAM |
QUESTIONS & CORRECT ANSWERS
(VERIFIED) | LATEST UPDATE | GRADE A+
What does accounting focus on?
Correct Answer: The impact a business's activities have on its overall financial performance
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
Which users would have a primary concern with an organization's ability to provide healthcare
benefits?
Correct Answer: Employees
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)
What has had the most significant impact on accounting practices?
Correct Answer: Information technology
What two items of information are revealed on the balance sheet?
,Choose 2 answers
Correct Answer: Ownership. Debt
Which term is defined as the residual interest in the net assets of a company?
Correct Answer: Owners' equity
A corporation has 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?
Correct Answer: $350 million
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?
Correct Answer: In 2014, a company provides services to a customer for which cash will be
collected the next year (2015).
Which category on the statement of cash flows summarizes cash receipts and payments to owners
and creditors of the company?
Correct Answer: Cash flows from financing activities
Where would an investor find a summary of a company's significant accounting policies?
, Correct Answer: In the notes to financial statements
Which assurance does an external audit report provide for its readers?
Correct Answer: The company's financial statements fairly reflect its financial position
Reliable
Correct Answer: Information that can be verified
Relevant
Correct Answer: Information having to do with the matter at hand
Material
Correct Answer: Information that is important enough to make a difference
Conservatism
Correct Answer: Information related to recognizing losses as they occur
What are steps in the decision cycle?
Correct Answer: 1 Prepare financial statements.
2 Analyze financial statements.
3 Gather information.
4 Make decision.
5 Implement decision.
WGU C213 PRE ASSESSMENT EXAM |
QUESTIONS & CORRECT ANSWERS
(VERIFIED) | LATEST UPDATE | GRADE A+
What does accounting focus on?
Correct Answer: The impact a business's activities have on its overall financial performance
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
Which users would have a primary concern with an organization's ability to provide healthcare
benefits?
Correct Answer: Employees
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)
What has had the most significant impact on accounting practices?
Correct Answer: Information technology
What two items of information are revealed on the balance sheet?
,Choose 2 answers
Correct Answer: Ownership. Debt
Which term is defined as the residual interest in the net assets of a company?
Correct Answer: Owners' equity
A corporation has 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?
Correct Answer: $350 million
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?
Correct Answer: In 2014, a company provides services to a customer for which cash will be
collected the next year (2015).
Which category on the statement of cash flows summarizes cash receipts and payments to owners
and creditors of the company?
Correct Answer: Cash flows from financing activities
Where would an investor find a summary of a company's significant accounting policies?
, Correct Answer: In the notes to financial statements
Which assurance does an external audit report provide for its readers?
Correct Answer: The company's financial statements fairly reflect its financial position
Reliable
Correct Answer: Information that can be verified
Relevant
Correct Answer: Information having to do with the matter at hand
Material
Correct Answer: Information that is important enough to make a difference
Conservatism
Correct Answer: Information related to recognizing losses as they occur
What are steps in the decision cycle?
Correct Answer: 1 Prepare financial statements.
2 Analyze financial statements.
3 Gather information.
4 Make decision.
5 Implement decision.
