WGU C213 Missed Pre-Assessment Questions with 100% Complete Solutions

WGU C213 Missed Pre-Assessment Questions with 100% Complete Solutions Two items on a balance sheet? - Answer- ownership and debt 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? - Answer- 350 million (take out owners equity) Which category on the statement of cash flows summarizes cash receipts and payments to owners and creditors of the company? - Answer- Cash flows from financing activities Which category on the statement of cash flows summarizes cash receipts and payments to owners and creditors of the company? - Answer- in the notes to the financial statement Material (accouting term a la relevant and reliable) - Answer- Information that is important enough to make a difference Conservatism (accounting term a la relevant and reliable) - Answer- Information related to recognizing losses as they occur Order the steps in the decision cycle from first (1) to last (5). - Answer- Prepare financial statements, Analyze financial statements, Gather information, Make decisions, Implement decision Which two values affect the measurement of net income?Choose 2 answers - Answer- operating expenses, ordinary gains and losses On May 1, 2011, a company using accrual accounting purchased equipment costing $500,000. It expects the equipment to have a useful life of five years. At the time of purchase, the company also purchased a one-year insurance policy on this equipment, which cost $6,000. How much insurance expense should the company have recognized for the year ending in 2011? - Answer- $4,000 Divide the cost $6,000 by 12 months. count the months May-Dec = 8 months x $6,000 = $4,000. In January of year 1, a company began doing business as a corporation in order to sell technology-related accessories and services. During its first month of operations, it focused on obtaining the financing needed to start its operations. In February of year 1, the company sold inventory costing $25,000 for $75,000 cash.In February of year 1, the company provided technology-related services worth $10,000. Customers paid a total of $4,000 in cash for these services and promised to pay the remainder the following month.What will be the total impact of these services provided on the company's balance sheet other than an increase in cash of $4,000?Choose 2 answers - Answer- Accounts receivable will increase $6,000 (you originally thought decrease), 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- $145,860 ($187k X .22 = $41,140 - ($187,000) = $145,860) What has had the most significant impact on accounting practices? - Answer- information technology 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 What is known about the direct and indirect methods of preparing statements of cash flow? - Answer- The indirect method is more popular among large U.S. companies (you thought it was direct) A company's statement of cash flows includes the following cash transactions: Sales1,250,000Inventory Purchase-750,000Property and Equipment Purchase- 270,000Interest Payment on Long-Term Debt -25,000Payment of Wages- 315,000Payment of Rent-40,000Borrowing Long-Term Debt200,000Payment of Cash Dividends-15,000Repurchase of Treasury Stock-40,000 Total Cash Flows-5,000 Assuming the company uses US GAAP standards, what is the total cash flow from financing activities? - Answer- 145,000 (you guessed $120,000) Which two requirements must accounting firms that audit public companies meet under the Sarbanes-Oxley Act? - Answer- Firms must not provide certain nonaudit services to audit clients, such as management functions or legal services and Firms must report to and be retained by the audit committee rather than the CFO or other company management. you said they need to make and maintain a code of ethics... idk why Which two requirements must management of public companies meet under the Sarbanes-Oxley Act? - Answer- They must provide an assessment of the effectiveness of internal controls with each annual report, They must support a stronger board and audit committee. (you said rotate every f