WGU C213 PA & OA Study Guide Exam Newest
2026 Questions and Correct Detailed Answers
Already Graded A+
Which internal control is intended to ensure that a company does not mistakenly
pay a supplier for an invoice that includes more items than were actually
received? - CORRECT ANSWER-The inventory department counts and inspects
items as received and forwards the receiving record to accounts payable.
What are common reasons for managers to manipulate reported earnings? -
CORRECT ANSWER-Pressure to meet internal sales goals &
Preparing to qualify for a bank loan
Which requirements must accounting firms that audit public companies meet
under the Sarbanes-Oxley Act? - CORRECT ANSWER-Firms must not provide
certain non-audit services to audit clients, such as management functions or legal
services. &
Firms must report to and be retained by the audit committee rather than the CFO
or other company management.
,Which actions do internal auditors perform to assist in maintaining the integrity of
financial statements? - CORRECT ANSWER-They search for and investigate
fraud.
&
They review financial records and internal controls.
What is a significant role of the U.S. Securities and Exchange Commission (SEC) in
financial reporting? - CORRECT ANSWER-They ensure that financial statement
users are provided with reliable information to use in decision making
What does management accounting provide? - CORRECT ANSWER-A better
insight for management so a business can perform more effectively
&
A competitive edge to a business by providing its managers with the detailed data
needed to make decisions
How does management accounting differ from financial accounting? - CORRECT
ANSWER-Management accounting is used primarily for internal planning,
control, and evaluation.
,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 benefit does a corporation gain by following Generally Accepted
Accounting Principles (GAPP)? - CORRECT ANSWER-An increase in its
compatibility to other companies
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 (PACOB)
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? - CORRECT
ANSWER-Ownership and Debt
Which term is defined as the residual in the net assets of a company? -
CORRECT ANSWER-Owners equity
Which situation should result in revenue recognition on the income statement for
the year ending 12/31/14 if the firm is using accrual 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
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
2026 Questions and Correct Detailed Answers
Already Graded A+
Which internal control is intended to ensure that a company does not mistakenly
pay a supplier for an invoice that includes more items than were actually
received? - CORRECT ANSWER-The inventory department counts and inspects
items as received and forwards the receiving record to accounts payable.
What are common reasons for managers to manipulate reported earnings? -
CORRECT ANSWER-Pressure to meet internal sales goals &
Preparing to qualify for a bank loan
Which requirements must accounting firms that audit public companies meet
under the Sarbanes-Oxley Act? - CORRECT ANSWER-Firms must not provide
certain non-audit services to audit clients, such as management functions or legal
services. &
Firms must report to and be retained by the audit committee rather than the CFO
or other company management.
,Which actions do internal auditors perform to assist in maintaining the integrity of
financial statements? - CORRECT ANSWER-They search for and investigate
fraud.
&
They review financial records and internal controls.
What is a significant role of the U.S. Securities and Exchange Commission (SEC) in
financial reporting? - CORRECT ANSWER-They ensure that financial statement
users are provided with reliable information to use in decision making
What does management accounting provide? - CORRECT ANSWER-A better
insight for management so a business can perform more effectively
&
A competitive edge to a business by providing its managers with the detailed data
needed to make decisions
How does management accounting differ from financial accounting? - CORRECT
ANSWER-Management accounting is used primarily for internal planning,
control, and evaluation.
,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 benefit does a corporation gain by following Generally Accepted
Accounting Principles (GAPP)? - CORRECT ANSWER-An increase in its
compatibility to other companies
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 (PACOB)
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? - CORRECT
ANSWER-Ownership and Debt
Which term is defined as the residual in the net assets of a company? -
CORRECT ANSWER-Owners equity
Which situation should result in revenue recognition on the income statement for
the year ending 12/31/14 if the firm is using accrual 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
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
