C213: ACCOUNTING FOR DECISION MAKERS: PRE-ASSESSMENT Questions And Answers (2022/2023)

C213: ACCOUNTING FOR DECISION MAKERS: PRE-ASSESSMENT Questions And Answers (2022/2023) What does accounting focus on? YOUR ANSWER CORRECT ANSWER The impact a business's activities have on its relationships with customers The impact a business's activities have on the environment The impact a business's activities have on its public image The impact a business's activities have on its overall financial performance 2. Which report summarizes cash collections and cash expenditures from operating, investing, and financing activities over a period of time? YOUR ANSWER CORRECT ANSWER Cash receipts and disbursements sheet Cash flow schedule Summary of cash receipts Statement of cash flows 3. Which users would have a primary concern with an organization’s ability to provide healthcare benefits? YOUR ANSWER CORRECT ANSWER Competitors Employees Vendors Suppliers 4. Which benefit does a corporation gain by following Generally Accepted Accounting Principles (GAAP)? YOUR ANSWER CORRECT ANSWER A decrease in its income tax obligations A decrease in the amount of net income it reports An increase in its comparability to other companies YOUR ANSWER CORRECT ANSWER An increase in the amount of assets it reports 5. Which body regulates a certified public accounting firm’s audit practices when the firm is auditing a large publicly traded company? YOUR ANSWER CORRECT ANSWER The Public Company Accounting Oversight Board (PCAOB) The Financial Accounting Standards Board (FASB) Another certified public accounting (CPA) firm The Internal Revenue Service (IRS) 6. What has had the most significant impact on accounting practices? YOUR ANSWER CORRECT ANSWER Certification requirements New product innovations Information technology Mobile computing 7. What two items of information are revealed on the balance sheet? Choose 2 answers YOUR ANSWER CORRECT ANSWER Ownership Debt Expenses Revenues Costs 8. Which term is defined as the residual interest in the net assets of a company? YOUR ANSWER CORRECT ANSWER YOUR ANSWER CORRECT ANSWER Operating income Liabilities Revenues Owners’ equity 9. 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? YOUR ANSWER CORRECT ANSWER $250 million $350 million $400 million $450 million 10. Which situation should result in revenue recognition on the income statement for the year ending 12/31/14 if the firm is using accrualbasis accounting? YOUR ANSWER CORRECT ANSWER In 2014, a company enters into a contract whereby it agrees to provide services to a customer next year (2015). In 2014, a company collects cash from a customer for services it will provide next year (2015). In 2014, a company provides services to a customer for which cash will be collected the next year (2015). In 2014, a company collects cash from a customer for services it provided in the previous year (2013). 11. Which category on the statement of cash flows summarizes cash receipts and payments to owners and creditors of the company? YOUR ANSWER CORRECT ANSWER Cash flows from investing activities Cash flows from operating activities Cash flows from business activities Cash flows from financing activities 12. Where would an investor find a summary of a company’s significant accounting policies? YOUR ANSWER CORRECT ANSWER In the balance sheet In the income statement In the statement of cash flows In the notes to financial statements 13. Which assurance does an external audit report provide for its readers? YOUR ANSWER CORRECT ANSWER The company will be a good credit risk The company will generate net income The company’s financial statements fairly reflect its financial position The company will generate positive cash flows 14. Match each accounting term with its definition. Answer options may be used more than once or not at all. YOUR ANSWER CORRECT ANSWER Reliable Information that can be verified Information that can be verified Relevant Information having to do with the matter at hand Information having to do with the matter at hand Material Information that is important enough to make a difference Information that is important enough to make a difference Conservatism Information related to recognizing losses as they occur Information related to recognizing losses as they occur 15. Order the steps in the decision cycle from first (1) to last (5). Select your answers from the pull-down list. We offer online tutoring and solutions to assignments for all modules. Reach out: