WGU C213. PRE-ASSESSMENT: ACCOUNTING FOR DECISION
MAKERS PVAC| 70 ACTUAL QUESTIONS & CORRECT DETAILED
ANSWERS 2025|| GRADED A+
1. 1. What does accounting focus on?
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-
ANS O The impact a business's activities have on its overall financial performance
2. 2. Which report summarizes cash collections 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 ANS O Statement of Cash Flows
3. 3. Which users would have a primary concern with an organization's ability
to provide healthcare benefits?
O Suppliers
O Employees
O Vendors
,O Competitors ANS O Employees
4. 4. Which benefit does a corporation gain by 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 ANS O An increase in it
comparability to other companies
5. 5. Which body regulates a certified public 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) ANS O The Public Compan
Accounting Oversight Board (PCAOB)
6. 6. What has had the most significant impact on accounting practices?
O New product innovations
,O Mobile computing
O Certification requirements
O Information Technology ANS O Information Technology
7. 7. What two items of information are revealed on the balance sheet?
Choose 2 answers
O Costs
O Revenues
O Debt
O Expenses
O Ownership ANS O
Debt O Ownership
8. 8. Which term is defined as the residual interest in the net assets of a
company?
O Owner's Equity
O Revenues
O Operating Income
O Liabilities ANS O Owner's Equity
9. 9. 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?
O $250 million
O $350 million
O $400 million
O $450 million ANS Assets = Liabilities +
3 B/ B
49
, Equity x + 50m = 300m + 100m
Solving for x = 350m
O $350 million
10. 10. 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?
O In 2014, a company collects cash from a customer for services it will provide
next year (2015)
4 B/ B
49
MAKERS PVAC| 70 ACTUAL QUESTIONS & CORRECT DETAILED
ANSWERS 2025|| GRADED A+
1. 1. What does accounting focus on?
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-
ANS O The impact a business's activities have on its overall financial performance
2. 2. Which report summarizes cash collections 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 ANS O Statement of Cash Flows
3. 3. Which users would have a primary concern with an organization's ability
to provide healthcare benefits?
O Suppliers
O Employees
O Vendors
,O Competitors ANS O Employees
4. 4. Which benefit does a corporation gain by 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 ANS O An increase in it
comparability to other companies
5. 5. Which body regulates a certified public 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) ANS O The Public Compan
Accounting Oversight Board (PCAOB)
6. 6. What has had the most significant impact on accounting practices?
O New product innovations
,O Mobile computing
O Certification requirements
O Information Technology ANS O Information Technology
7. 7. What two items of information are revealed on the balance sheet?
Choose 2 answers
O Costs
O Revenues
O Debt
O Expenses
O Ownership ANS O
Debt O Ownership
8. 8. Which term is defined as the residual interest in the net assets of a
company?
O Owner's Equity
O Revenues
O Operating Income
O Liabilities ANS O Owner's Equity
9. 9. 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?
O $250 million
O $350 million
O $400 million
O $450 million ANS Assets = Liabilities +
3 B/ B
49
, Equity x + 50m = 300m + 100m
Solving for x = 350m
O $350 million
10. 10. 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?
O In 2014, a company collects cash from a customer for services it will provide
next year (2015)
4 B/ B
49
