C213 WGU Objective Assessment OA Prep
(Latest Update ) Questions &
Answers 100% Correct - (Grade A)
Which of the following is NOT one of the three primary financial statements? -
correct answer The Statement of Retained Earnings
One reason for a company's preparing and providing financial statements is to
reduce uncertainty for an investor regarding the firm's future financial performance. -
correct answer True
Which of the following accounts is considered to be the most liquid? - correct answer
Cash
Which of the following types of accounts are NOT found on the balance sheet? -
correct answer Revenues
The financial statement that reports resources owned, the obligations to transfer
resources to other organizations, and the claims by the entity's owners is known as
the - correct answer Balance sheet
The idea that the activities of the entity are to be separated from those of the
individual owner is the - correct answer Separate entity concept
The basic accounting equation is - correct answer Assets = Liabilities + Owners'
Equity
,Which of the following would be included on an income statement? - correct answer
Rent expense
Costs that are incurred during the normal operations of a business to generate
revenues are called - correct answer Expenses
Another name for the income statement is - correct answer Statement of earnings
Revenues cause - correct answer An increase in net assets
The financial statement that presents a summary of the revenues and expenses of a
business for a specific period of time, such as a month or a year, is called a(n) -
correct answer Income Statement
Which of the following activities would NOT be classified as an investing activity? -
correct answer Purchase of inventory
A major source of cash from operating activities is - correct answer Receipts from sale
of goods
Which of the following classifications refers to those activities associated with buying
and selling long-term assets? - correct answer Investing
Which of the following classifications does NOT appear on the Statement of Cash
Flows? - correct answer Borrowing
, Vital information that CANNOT be captured solely by dollar amounts is reported in a
firm's - correct answer Notes to financial statements
Which of the following is NOT one of the four general types of financial statement
notes? - correct answer Supplementary information required by the Internal Revenue
Service
Which of the following is an example of a significant accounting policy that would be
explained in the notes to the financial statements? - correct answer The method used
to estimate depreciation on a piece of equipment
Which of the following is an example of a disclosure of information NOT recognized
that would be explained in the notes to the financial statements? - correct answer The
disclosure of the uncertain, potential outcome of a lawsuit
Which of the following is an example of additional information about summary totals
that would be explained in the notes to the financial statements? - correct answer The
description of all the individual items that comprise notes payable
An independent audit report is usually issued by - correct answer A certified public
accountant
In completing an audit of a company's financial statements, auditors - correct answer
Provide some assurance that the financial statements are not misleading
The accuracy of the information contained in the financial statements is the
responsibility of the - correct answer Management
(Latest Update ) Questions &
Answers 100% Correct - (Grade A)
Which of the following is NOT one of the three primary financial statements? -
correct answer The Statement of Retained Earnings
One reason for a company's preparing and providing financial statements is to
reduce uncertainty for an investor regarding the firm's future financial performance. -
correct answer True
Which of the following accounts is considered to be the most liquid? - correct answer
Cash
Which of the following types of accounts are NOT found on the balance sheet? -
correct answer Revenues
The financial statement that reports resources owned, the obligations to transfer
resources to other organizations, and the claims by the entity's owners is known as
the - correct answer Balance sheet
The idea that the activities of the entity are to be separated from those of the
individual owner is the - correct answer Separate entity concept
The basic accounting equation is - correct answer Assets = Liabilities + Owners'
Equity
,Which of the following would be included on an income statement? - correct answer
Rent expense
Costs that are incurred during the normal operations of a business to generate
revenues are called - correct answer Expenses
Another name for the income statement is - correct answer Statement of earnings
Revenues cause - correct answer An increase in net assets
The financial statement that presents a summary of the revenues and expenses of a
business for a specific period of time, such as a month or a year, is called a(n) -
correct answer Income Statement
Which of the following activities would NOT be classified as an investing activity? -
correct answer Purchase of inventory
A major source of cash from operating activities is - correct answer Receipts from sale
of goods
Which of the following classifications refers to those activities associated with buying
and selling long-term assets? - correct answer Investing
Which of the following classifications does NOT appear on the Statement of Cash
Flows? - correct answer Borrowing
, Vital information that CANNOT be captured solely by dollar amounts is reported in a
firm's - correct answer Notes to financial statements
Which of the following is NOT one of the four general types of financial statement
notes? - correct answer Supplementary information required by the Internal Revenue
Service
Which of the following is an example of a significant accounting policy that would be
explained in the notes to the financial statements? - correct answer The method used
to estimate depreciation on a piece of equipment
Which of the following is an example of a disclosure of information NOT recognized
that would be explained in the notes to the financial statements? - correct answer The
disclosure of the uncertain, potential outcome of a lawsuit
Which of the following is an example of additional information about summary totals
that would be explained in the notes to the financial statements? - correct answer The
description of all the individual items that comprise notes payable
An independent audit report is usually issued by - correct answer A certified public
accountant
In completing an audit of a company's financial statements, auditors - correct answer
Provide some assurance that the financial statements are not misleading
The accuracy of the information contained in the financial statements is the
responsibility of the - correct answer Management
