WGU C213 PREASSESSMENT ACCOUNTING FOR
DECISION MAKERS PVAC 69 QUESTIONS WITH
VERIFIED ANSWERS
O The impact a business's activities have on its overall financial performance -
CORRECT ANSWER 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
O Statement of Cash Flows - CORRECT ANSWER 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
O Employees - CORRECT ANSWER 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
O An increase in its comparability to other companies - CORRECT ANSWER 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
O The Public Company Accounting Oversight Board (PCAOB) - CORRECT ANSWER
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)
O Information Technology - CORRECT ANSWER 6. What has had the most
significant impact on accounting practices?
,O New product innovations
O Mobile computing
O Certification requirements
O Information Technology
O Debt
O Ownership - CORRECT ANSWER 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
O Owner's Equity - CORRECT ANSWER 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
, Assets = Liabilities + Equity
x + 50m = 300m + 100m
Solving for x = 350m
O $350 million - CORRECT ANSWER 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
O In 2014, a company provide services to a customer for cash will be collected the
next year (2015) - CORRECT ANSWER 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)
O In 2014, a company collects cash from a customer for services it provided in the
previous year (2013)
DECISION MAKERS PVAC 69 QUESTIONS WITH
VERIFIED ANSWERS
O The impact a business's activities have on its overall financial performance -
CORRECT ANSWER 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
O Statement of Cash Flows - CORRECT ANSWER 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
O Employees - CORRECT ANSWER 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
O An increase in its comparability to other companies - CORRECT ANSWER 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
O The Public Company Accounting Oversight Board (PCAOB) - CORRECT ANSWER
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)
O Information Technology - CORRECT ANSWER 6. What has had the most
significant impact on accounting practices?
,O New product innovations
O Mobile computing
O Certification requirements
O Information Technology
O Debt
O Ownership - CORRECT ANSWER 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
O Owner's Equity - CORRECT ANSWER 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
, Assets = Liabilities + Equity
x + 50m = 300m + 100m
Solving for x = 350m
O $350 million - CORRECT ANSWER 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
O In 2014, a company provide services to a customer for cash will be collected the
next year (2015) - CORRECT ANSWER 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)
O In 2014, a company collects cash from a customer for services it provided in the
previous year (2013)
