C213 WGU OBJECTIVE ASSESSMENT UPDATED ACTUAL Exam
Questions and CORRECT Answers | Ultimate Exam Preparation
Bundle | Grade A+
Question 1.
Accounting
Correct Answer: A system of providing "quantitative information, primarily
financial in nature, about economic entities that is intended to be useful in
making economic decisions."
Question 2.
Balance Sheet
Correct Answer: Document which reports the resources of a company (the
assets), the company's obligations (the liabilities), and the owners' equity,
which represents how much money has been invested in the company by its
owners.
Question 3.
American Institute of Certified Public Accountants (AICPA)
Correct Answer: The professional organization of certified public accountants
in the United States.
Question 4.
Bookkeeping
Correct Answer: The preservation of a systematic, quantitative record of an
activity.
Question 5.
Certified Public Accountant
Correct Answer: A person who has taken a minimum number of college-level
accounting classes, has passed the dreaded CPA exam, and has met other
requirements set by his or her state.
Question 6.
Financial Accounting
Correct Answer: The name given to accounting information provided for and
used by external users.
,Question 7.
Financial Accounting Standards Board (FASB)
Correct Answer: Private, non-profit body that sets accounting standards in the
United States.
Question 8.
Financial Statements
Correct Answer: The three primary financial information documents: the
balance sheet, income statement, and statement of cash flows.
Question 9.
Income Statement
Correct Answer: This document reports the amount of net income earned by a
company during a period, with annual and quarterly income statements being
the most common.
• Internal Revenue Service (IRS) -✓✓The government agency responsible for
tax collection and tax law enforcement.
Question 10.
International Accounting Standards Board (IASB)
Correct Answer: An independent, international body formed to develop
worldwide accounting standards.
Question 11.
International Financial Reporting Standards (IFRS)
Correct Answer: The accounting standards produced by the IASB.
Question 12.
Managerial Accounting
Correct Answer: The name given to accounting systems designed for internal
users.
Question 13.
Public Company Accounting Oversight Board (PCAOB)
Correct Answer: A private, non-profit organization that effectively serves as
an arm of the SEC in registering, inspecting, and disciplining the auditors of
all publicly traded companies.
,Question 14.
Statement of Cash Flows
Correct Answer: This document reports the amount of cash collected and paid
out by a company in the following three types of activities: operating,
investing, and financing.
Question 15.
Accounting Equation
Correct Answer: Assets = Liabilities + Owners' Equity
Question 16.
Accumulated Other Comprehensive Income
Correct Answer: The source of these increased assets
Question 17.
Assets
Correct Answer: Assets are the firm's economic resources, formally defined as
"probable future economic benefits obtained or controlled by a particular
entity as a result of past transactions or events
Question 18.
What does accounting focus on?
Correct Answer: The impact a business's activities have on its overall financial
performance
Question 19.
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? -✓✓Employees
Question 20.
Which benefit does a corporation gain by following Generally Accepted Accounting
Principles (GAAP)?
Correct Answer: An increase in its comparability to other companies
, Question 21.
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 (PCAOB)
Question 22.
What has had the most significant impact on accounting practices?
Correct Answer: Information technology
Question 23.
What two items of information are revealed on the balance sheet?
Correct Answer: Ownership, Debt
Question 24.
Which term is defined as the residual interest in the net assets of a company?
Correct Answer: Owners' equity
Question 25.
A corporation has total liabilities of $300 million, total owners' equity of $100 million,
and current assets of $50 million.
What is the value of the firm's long-term assets?
Correct Answer: $350 million
Question 26.
Which situation should result in revenue recognition on the income statement for the
year ending 12/31/14 if the firm is using accrual-basis accounting?
Correct Answer: In 2014, a company provides services to a customer for which
cash will be collected the next year (2015).
Question 27.
Which category on the statement of cash flows summarizes cash receipts and payments
to owners and creditors of the company?
Correct Answer: Cash flows from financing activities
Question 28.
Where would an investor find a summary of a company's significant accounting policies?
Questions and CORRECT Answers | Ultimate Exam Preparation
Bundle | Grade A+
Question 1.
Accounting
Correct Answer: A system of providing "quantitative information, primarily
financial in nature, about economic entities that is intended to be useful in
making economic decisions."
Question 2.
Balance Sheet
Correct Answer: Document which reports the resources of a company (the
assets), the company's obligations (the liabilities), and the owners' equity,
which represents how much money has been invested in the company by its
owners.
Question 3.
American Institute of Certified Public Accountants (AICPA)
Correct Answer: The professional organization of certified public accountants
in the United States.
Question 4.
Bookkeeping
Correct Answer: The preservation of a systematic, quantitative record of an
activity.
Question 5.
Certified Public Accountant
Correct Answer: A person who has taken a minimum number of college-level
accounting classes, has passed the dreaded CPA exam, and has met other
requirements set by his or her state.
Question 6.
Financial Accounting
Correct Answer: The name given to accounting information provided for and
used by external users.
,Question 7.
Financial Accounting Standards Board (FASB)
Correct Answer: Private, non-profit body that sets accounting standards in the
United States.
Question 8.
Financial Statements
Correct Answer: The three primary financial information documents: the
balance sheet, income statement, and statement of cash flows.
Question 9.
Income Statement
Correct Answer: This document reports the amount of net income earned by a
company during a period, with annual and quarterly income statements being
the most common.
• Internal Revenue Service (IRS) -✓✓The government agency responsible for
tax collection and tax law enforcement.
Question 10.
International Accounting Standards Board (IASB)
Correct Answer: An independent, international body formed to develop
worldwide accounting standards.
Question 11.
International Financial Reporting Standards (IFRS)
Correct Answer: The accounting standards produced by the IASB.
Question 12.
Managerial Accounting
Correct Answer: The name given to accounting systems designed for internal
users.
Question 13.
Public Company Accounting Oversight Board (PCAOB)
Correct Answer: A private, non-profit organization that effectively serves as
an arm of the SEC in registering, inspecting, and disciplining the auditors of
all publicly traded companies.
,Question 14.
Statement of Cash Flows
Correct Answer: This document reports the amount of cash collected and paid
out by a company in the following three types of activities: operating,
investing, and financing.
Question 15.
Accounting Equation
Correct Answer: Assets = Liabilities + Owners' Equity
Question 16.
Accumulated Other Comprehensive Income
Correct Answer: The source of these increased assets
Question 17.
Assets
Correct Answer: Assets are the firm's economic resources, formally defined as
"probable future economic benefits obtained or controlled by a particular
entity as a result of past transactions or events
Question 18.
What does accounting focus on?
Correct Answer: The impact a business's activities have on its overall financial
performance
Question 19.
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? -✓✓Employees
Question 20.
Which benefit does a corporation gain by following Generally Accepted Accounting
Principles (GAAP)?
Correct Answer: An increase in its comparability to other companies
, Question 21.
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 (PCAOB)
Question 22.
What has had the most significant impact on accounting practices?
Correct Answer: Information technology
Question 23.
What two items of information are revealed on the balance sheet?
Correct Answer: Ownership, Debt
Question 24.
Which term is defined as the residual interest in the net assets of a company?
Correct Answer: Owners' equity
Question 25.
A corporation has total liabilities of $300 million, total owners' equity of $100 million,
and current assets of $50 million.
What is the value of the firm's long-term assets?
Correct Answer: $350 million
Question 26.
Which situation should result in revenue recognition on the income statement for the
year ending 12/31/14 if the firm is using accrual-basis accounting?
Correct Answer: In 2014, a company provides services to a customer for which
cash will be collected the next year (2015).
Question 27.
Which category on the statement of cash flows summarizes cash receipts and payments
to owners and creditors of the company?
Correct Answer: Cash flows from financing activities
Question 28.
Where would an investor find a summary of a company's significant accounting policies?
