WGU C213 PA & OA STUDY GUIDE EXAM COMPREHENSIVE
QUESTIONS | FREQUENTLY MOST TESTED QUESTIONS
AND VERIFIED SOLUTIONS @ 2026 | TRUSTED BY
STUDENTS ACROSS MULTIPLE DISCIPLINES! | QUALITY
CONTENT YOU CAN RELY ON!!
Course Code:
Course Title:
Programme:
Academic Year: 2026/2027.
Duration: 2 Hours.
Total Marks: 100.
Candidate Instructions:
1) Write your Registration Number on every answer booklet used.
2) Answer ALL questions in Section A and ANY TWO (2) questions in Section B.
3) Read each question carefully before answering.
4) Begin each question on a new page.
5) The marks for each question are indicated in brackets.
6) This paper consists of several printed pages, including this page.
7) Ensure your copy is complete before the examination begins.
8) Unauthorized materials and communication with other candidates are not permitted.
Turn Over.
APPHIA – Crafted with Care and Precision for Academic Excellence.
1
, 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
(GAPP)? 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? Answer: The Public Company Accounting Oversight
Board (PACOB)
What has had the most significant impact on Accounting practices? Answer: Information
technology
What two items of information are revealed on the balance sheet? Answer: Ownership and Debt
Which term is defined as the residual in the net assets of a company? 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? 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? Answer: Cash from financing activities
Where would an investor find a summary of a company's significant accounting policies?
Answer: In the notes to financial statements
Which assurance does an external audit report provide for its readers? Answer: The company's
financial statements fairly reflect its financial position
Information that can be verified Answer: Reliable
Information having to do with the matter at hand Answer: Relevant
Information that is important enough to make a difference Answer: Material
Information related to recognizing losses as they occur Answer: Conservatism
What is consistent with a continual decline in gross profit if the firm's cost of goods sold
remains the same? Answer: Continual decrease in sales
Which form of debt should be reported in the long-term liability category? Answer: Notes
payable expected to be paid in 18 months
APPHIA – Crafted with Care and Precision for Academic Excellence.
2
QUESTIONS | FREQUENTLY MOST TESTED QUESTIONS
AND VERIFIED SOLUTIONS @ 2026 | TRUSTED BY
STUDENTS ACROSS MULTIPLE DISCIPLINES! | QUALITY
CONTENT YOU CAN RELY ON!!
Course Code:
Course Title:
Programme:
Academic Year: 2026/2027.
Duration: 2 Hours.
Total Marks: 100.
Candidate Instructions:
1) Write your Registration Number on every answer booklet used.
2) Answer ALL questions in Section A and ANY TWO (2) questions in Section B.
3) Read each question carefully before answering.
4) Begin each question on a new page.
5) The marks for each question are indicated in brackets.
6) This paper consists of several printed pages, including this page.
7) Ensure your copy is complete before the examination begins.
8) Unauthorized materials and communication with other candidates are not permitted.
Turn Over.
APPHIA – Crafted with Care and Precision for Academic Excellence.
1
, 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
(GAPP)? 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? Answer: The Public Company Accounting Oversight
Board (PACOB)
What has had the most significant impact on Accounting practices? Answer: Information
technology
What two items of information are revealed on the balance sheet? Answer: Ownership and Debt
Which term is defined as the residual in the net assets of a company? 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? 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? Answer: Cash from financing activities
Where would an investor find a summary of a company's significant accounting policies?
Answer: In the notes to financial statements
Which assurance does an external audit report provide for its readers? Answer: The company's
financial statements fairly reflect its financial position
Information that can be verified Answer: Reliable
Information having to do with the matter at hand Answer: Relevant
Information that is important enough to make a difference Answer: Material
Information related to recognizing losses as they occur Answer: Conservatism
What is consistent with a continual decline in gross profit if the firm's cost of goods sold
remains the same? Answer: Continual decrease in sales
Which form of debt should be reported in the long-term liability category? Answer: Notes
payable expected to be paid in 18 months
APPHIA – Crafted with Care and Precision for Academic Excellence.
2
