WGU C213 PA 2026 STUDY SHEET MASTER
QUESTIONS WITH ACCURATE ANSWERS
◉Which two values affect the measurement of net income Answer:
Operating expenses & Ordinary gains and losses
◉Which two items' subtotals are included in a multi-step income
statement Answer: Gross profit & Income from operations
◉Given the following, which month should advertising costs be
expensed by a company using accural based accounting: The
furniture company paid $3,000 for advertising that ran in the local
newspaper in November 2011. Answer: November 2011
◉How much insurance expense should a company using accrual
based accounting have recognized for the year ending in 2011 given
the following:
Purchased equipment costing $500,000; useful life five year;
purchased a one-year insurance policy on this equipment, which
cost $6,000. Answer: $4000
,◉What will be the total impact of services provided on the balance
sheet other than an increase in cash of $4,000 given the following:
Services were provided worth $10,000; customers paid $4,000 up
front and promised the balance next month. Answer: Accounts
receivable will increase $6,000 & Retained earnings will increase
$10,000
◉What was the 2012 net profit amount if the 2013 pro-forma net
profit of $187,000 was based on a 22% increase Answer: $153,279
◉What does accounting focus on 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 Answer: Statement of cash flows
◉Which users would have a primary concern with an organization's
ability to provide healthcare benefits Answer: Employees
◉Which benefit does a corporation gain by following Generally
Accepted Accounting Principles (GAAP) Answer: Employees
, ◉Which benefit does a corporation gain by following Generally
Accepted Accounting Principles (GAAP) Answer: An increase in its
comparability to other companies
◉Which body regulates a certified public accounting firm's audit
practices when the firm is auditing a large publicly traded company
Answer: The Public Company Accounting Oversight Board (PCAOB)
◉What has had the most significant impact on accounting practices
Answer: Information technology
◉What is a common category in a statement of cash flows Answer:
Cash from investing activities
◉Which cash flow category would include "cash received from
investors" Answer: Cash from financing activities
◉Which item is an investing activity Answer: Cash payments for
purchase of plant assets
◉What impact does the sale of equipment have on the statement of
cash flows Answer: Increase in cash from investing activities
QUESTIONS WITH ACCURATE ANSWERS
◉Which two values affect the measurement of net income Answer:
Operating expenses & Ordinary gains and losses
◉Which two items' subtotals are included in a multi-step income
statement Answer: Gross profit & Income from operations
◉Given the following, which month should advertising costs be
expensed by a company using accural based accounting: The
furniture company paid $3,000 for advertising that ran in the local
newspaper in November 2011. Answer: November 2011
◉How much insurance expense should a company using accrual
based accounting have recognized for the year ending in 2011 given
the following:
Purchased equipment costing $500,000; useful life five year;
purchased a one-year insurance policy on this equipment, which
cost $6,000. Answer: $4000
,◉What will be the total impact of services provided on the balance
sheet other than an increase in cash of $4,000 given the following:
Services were provided worth $10,000; customers paid $4,000 up
front and promised the balance next month. Answer: Accounts
receivable will increase $6,000 & Retained earnings will increase
$10,000
◉What was the 2012 net profit amount if the 2013 pro-forma net
profit of $187,000 was based on a 22% increase Answer: $153,279
◉What does accounting focus on 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 Answer: Statement of cash flows
◉Which users would have a primary concern with an organization's
ability to provide healthcare benefits Answer: Employees
◉Which benefit does a corporation gain by following Generally
Accepted Accounting Principles (GAAP) Answer: Employees
, ◉Which benefit does a corporation gain by following Generally
Accepted Accounting Principles (GAAP) Answer: An increase in its
comparability to other companies
◉Which body regulates a certified public accounting firm's audit
practices when the firm is auditing a large publicly traded company
Answer: The Public Company Accounting Oversight Board (PCAOB)
◉What has had the most significant impact on accounting practices
Answer: Information technology
◉What is a common category in a statement of cash flows Answer:
Cash from investing activities
◉Which cash flow category would include "cash received from
investors" Answer: Cash from financing activities
◉Which item is an investing activity Answer: Cash payments for
purchase of plant assets
◉What impact does the sale of equipment have on the statement of
cash flows Answer: Increase in cash from investing activities
