WGU C213 PRE-ASSESSMENT ACCOUNTING FOR
DECISION MAKERS PVAC 74 QUESTIONS WITH
VERIFIED ANSWERS 2025/2026
The impact a business's activities have on its overall financial performance -
CORRECT ANSWER What does accounting focus on?
Statement of cash flows - CORRECT ANSWER Which report summarizes cash
collections and cash expenditures from operating, investing, and financing
activities over a period of time?
Employees - CORRECT ANSWER Which users would have a primary concern with
an organization's ability to provide healthcare benefits?
The Public Company Accounting Oversight Board (PCAOB) - CORRECT ANSWER
Which body regulates a certified public accounting firm's audit practices when the
firm is auditing a large publicly traded company?
Information technology - CORRECT ANSWER What has had the most significant
impact on accounting practices?
Ownership.
Debt - CORRECT ANSWER What two items of information are revealed on the
balance sheet?
Choose 2 answers
,Owners' equity - CORRECT ANSWER Which term is defined as the residual interest
in the net assets of a company?
$350 million - CORRECT ANSWER 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?
In 2014, a company provides services to a customer for which cash will be
collected the next year (2015). - CORRECT ANSWER 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?
Cash flows from financing activities - CORRECT ANSWER Which category on the
statement of cash flows summarizes cash receipts and payments to owners and
creditors of the company?
In the notes to financial statements - CORRECT ANSWER Where would an investor
find a summary of a company's significant accounting policies?
The company's financial statements fairly reflect its financial position - CORRECT
ANSWER Which assurance does an external audit report provide for its readers?
Information that can be verified - CORRECT ANSWER Reliable
, Information having to do with the matter at hand - CORRECT ANSWER Relevant
Information that is important enough to make a difference - CORRECT ANSWER
Material
Information related to recognizing losses as they occur - CORRECT ANSWER
Conservatism
1 Prepare financial statements.
2 Analyze financial statements.
3 Gather information.
4 Make decision.
5 Implement decision - CORRECT ANSWER steps in the decision cycle
11.0 - CORRECT ANSWER Partial financial information for a company is as follows:
Current assets $36,543
Total assets $58,719
Current liabilities $24,824
Total liabilities $48,561
Stockholders' equity $10,158
Sales $46,997
Net Income $ 3,761
Market value of shares $41,316
DECISION MAKERS PVAC 74 QUESTIONS WITH
VERIFIED ANSWERS 2025/2026
The impact a business's activities have on its overall financial performance -
CORRECT ANSWER What does accounting focus on?
Statement of cash flows - CORRECT ANSWER Which report summarizes cash
collections and cash expenditures from operating, investing, and financing
activities over a period of time?
Employees - CORRECT ANSWER Which users would have a primary concern with
an organization's ability to provide healthcare benefits?
The Public Company Accounting Oversight Board (PCAOB) - CORRECT ANSWER
Which body regulates a certified public accounting firm's audit practices when the
firm is auditing a large publicly traded company?
Information technology - CORRECT ANSWER What has had the most significant
impact on accounting practices?
Ownership.
Debt - CORRECT ANSWER What two items of information are revealed on the
balance sheet?
Choose 2 answers
,Owners' equity - CORRECT ANSWER Which term is defined as the residual interest
in the net assets of a company?
$350 million - CORRECT ANSWER 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?
In 2014, a company provides services to a customer for which cash will be
collected the next year (2015). - CORRECT ANSWER 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?
Cash flows from financing activities - CORRECT ANSWER Which category on the
statement of cash flows summarizes cash receipts and payments to owners and
creditors of the company?
In the notes to financial statements - CORRECT ANSWER Where would an investor
find a summary of a company's significant accounting policies?
The company's financial statements fairly reflect its financial position - CORRECT
ANSWER Which assurance does an external audit report provide for its readers?
Information that can be verified - CORRECT ANSWER Reliable
, Information having to do with the matter at hand - CORRECT ANSWER Relevant
Information that is important enough to make a difference - CORRECT ANSWER
Material
Information related to recognizing losses as they occur - CORRECT ANSWER
Conservatism
1 Prepare financial statements.
2 Analyze financial statements.
3 Gather information.
4 Make decision.
5 Implement decision - CORRECT ANSWER steps in the decision cycle
11.0 - CORRECT ANSWER Partial financial information for a company is as follows:
Current assets $36,543
Total assets $58,719
Current liabilities $24,824
Total liabilities $48,561
Stockholders' equity $10,158
Sales $46,997
Net Income $ 3,761
Market value of shares $41,316
