WGU C213 PA 2026 EXAMINATION TEST
COMPLETE QUESTIONS AND SOLUTIONS
◉Statement of cash flows. Answer: Which report summarizes cash
collections and cash expenditures from operating, investing, and
financing activities over a period of time?
◉Employees. Answer: Which users would have a primary concern
with an organization's ability to provide healthcare benefits?
◉An increase in its compatibility to other companies. Answer:
Which benefit does a corporation gain by following Generally
Accepted Accounting Principles (GAPP)?
◉The Public Company Accounting Oversight Board (PACOB).
Answer: Which body regulates a certified public accounting firm's
audit practices when the firm is auditing a large publicly traded
company?
◉Information technology. Answer: What has had the most
significant impact on Accounting practices?
◉Ownership and Debt. Answer: What two items of information are
revealed on the balance sheet?
,◉Owners equity. Answer: Which term is defined as the residual in
the net assets of a company?
◉In 2014, a company provides services to a customer for which cash
will be collected the next year (2015).. 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 accounting?
◉Cash from financing activities. 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. 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. Answer: Which assurance does an external audit report
provide for its readers?
◉Reliable. Answer: Information that can be verified
◉Relevant. Answer: Information having to do with the matter at
hand
,◉Material. Answer: Information that is important enough to make a
difference
◉Conservatism. Answer: Information related to recognizing losses
as they occur
◉Continual decrease in sales. Answer: What is consistent with a
continual decline in gross profit if the firm's cost of goods sold
remains the same?
◉Notes payable expected to be paid in 18 months. Answer: Which
form of debt should be reported in the long-term liability category?
◉Operating expenses &
Ordinary gains and losses. Answer: Which values affect the
measurement of net income?
◉Gross profit &
Income from operations. Answer: Which items' subtotals are
included in a multi-step income statement?
◉Cash from investing activities. Answer: What is a common
category in a statement of cash flows?
, ◉Cash from financing activities. Answer: Which cash flow category
would include "cash received from investors"?
◉Cash payments for purchase of plant assets. Answer: Which item is
an investing activity?
◉Increase in cash from investing activities. Answer: What impact
does the sale of equipment have on the statement of cash flows?
◉The indirect method is more popular among large U.S. companies.
Answer: What is known about the direct and indirect methods of
preparing statements of cash flow?
◉The inventory department counts and inspects items as received
and forwards the receiving record to accounts payable.. Answer:
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?
◉Pressure to meet internal sales goals &
Preparing to qualify for a bank loan. Answer: What are common
reasons for managers to manipulate reported earnings?
COMPLETE QUESTIONS AND SOLUTIONS
◉Statement of cash flows. Answer: Which report summarizes cash
collections and cash expenditures from operating, investing, and
financing activities over a period of time?
◉Employees. Answer: Which users would have a primary concern
with an organization's ability to provide healthcare benefits?
◉An increase in its compatibility to other companies. Answer:
Which benefit does a corporation gain by following Generally
Accepted Accounting Principles (GAPP)?
◉The Public Company Accounting Oversight Board (PACOB).
Answer: Which body regulates a certified public accounting firm's
audit practices when the firm is auditing a large publicly traded
company?
◉Information technology. Answer: What has had the most
significant impact on Accounting practices?
◉Ownership and Debt. Answer: What two items of information are
revealed on the balance sheet?
,◉Owners equity. Answer: Which term is defined as the residual in
the net assets of a company?
◉In 2014, a company provides services to a customer for which cash
will be collected the next year (2015).. 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 accounting?
◉Cash from financing activities. 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. 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. Answer: Which assurance does an external audit report
provide for its readers?
◉Reliable. Answer: Information that can be verified
◉Relevant. Answer: Information having to do with the matter at
hand
,◉Material. Answer: Information that is important enough to make a
difference
◉Conservatism. Answer: Information related to recognizing losses
as they occur
◉Continual decrease in sales. Answer: What is consistent with a
continual decline in gross profit if the firm's cost of goods sold
remains the same?
◉Notes payable expected to be paid in 18 months. Answer: Which
form of debt should be reported in the long-term liability category?
◉Operating expenses &
Ordinary gains and losses. Answer: Which values affect the
measurement of net income?
◉Gross profit &
Income from operations. Answer: Which items' subtotals are
included in a multi-step income statement?
◉Cash from investing activities. Answer: What is a common
category in a statement of cash flows?
, ◉Cash from financing activities. Answer: Which cash flow category
would include "cash received from investors"?
◉Cash payments for purchase of plant assets. Answer: Which item is
an investing activity?
◉Increase in cash from investing activities. Answer: What impact
does the sale of equipment have on the statement of cash flows?
◉The indirect method is more popular among large U.S. companies.
Answer: What is known about the direct and indirect methods of
preparing statements of cash flow?
◉The inventory department counts and inspects items as received
and forwards the receiving record to accounts payable.. Answer:
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?
◉Pressure to meet internal sales goals &
Preparing to qualify for a bank loan. Answer: What are common
reasons for managers to manipulate reported earnings?
