WGU C213 Pre-assessment and Objective Assessment Exam
with Multiple Choice Questions and Elaborated Answers
100% Verified Pass
1. What does accounting focus on?
- 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.-
: The impact a business's activities 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?
- Cash receipts and disbursements sheet
- Cash flow schedule
- Summary of cash receipts
- Statement of cash flows: Statement of cash flows
3. Which users would have a primary concern with an organization's ability to
provide healthcare benefits?
- Competitors
- Employees
- Vendors
- Suppliers: Employees
4. Which benefit does a corporation gain by following Generally Accepted
,Accounting Principles (GAAP)?
- 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
- An increase in the amount of assets it reports: An increase in its comparabilityto
other companies.
5. Which body regulates a certified public accounting firm's audit practices
when the firm is auditing a large publicly traded company?
- The Public Company Accounting Oversight Board (PCAOB)
- The Financial Accounting Standards Board (FASB)
- Another certified public accounting firm (CPA)
- The Internal Revenue Service (IRS): The Public Company Accounting Oversight
Board (PCAOB)
6. What has had the most significant impact on accounting practices?: Infor-
mation technology
7. What two items of information are revealed on the balance sheet?: Owner-
ship and Debt
8. Which term is defined as the residual interest in the net assets of a compa-
ny?: Owners' equity
, 9. A corporation has a 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?: $350 Million. Combine the liabilities with assets.
10. Which situation should result in revenue recognition on the income state-
ment for the year ending 12/31/14 if the firm is using accrual-basis account-
ing?: In 2014, a company provides services to a customer for which cash will be
collected the next year (2015).
11. Which category on the statement of cash flows summarizes cash receipts
and payments to owners and creditors of the company?: Cash flows from
financing activities
12. Where would an investor find a summary of a company's significant ac-
counting policies?: In the notes to financial statements
13. Which assurance does an external audit report provide for its readers?
- 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: The company's financial state-
ments fairly reflect its financial position
14. Order the steps in the decision cycle from first to last: Gather information,
prepare financial statements, analyze financial statements, make decision, and
implement decision.: Prepare financial statements, analyze financial state- ments,
gather information, make decision, and implement decision
15. Partial financial information for a company is as follows:
Current assets $36,543
with Multiple Choice Questions and Elaborated Answers
100% Verified Pass
1. What does accounting focus on?
- 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.-
: The impact a business's activities 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?
- Cash receipts and disbursements sheet
- Cash flow schedule
- Summary of cash receipts
- Statement of cash flows: Statement of cash flows
3. Which users would have a primary concern with an organization's ability to
provide healthcare benefits?
- Competitors
- Employees
- Vendors
- Suppliers: Employees
4. Which benefit does a corporation gain by following Generally Accepted
,Accounting Principles (GAAP)?
- 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
- An increase in the amount of assets it reports: An increase in its comparabilityto
other companies.
5. Which body regulates a certified public accounting firm's audit practices
when the firm is auditing a large publicly traded company?
- The Public Company Accounting Oversight Board (PCAOB)
- The Financial Accounting Standards Board (FASB)
- Another certified public accounting firm (CPA)
- The Internal Revenue Service (IRS): The Public Company Accounting Oversight
Board (PCAOB)
6. What has had the most significant impact on accounting practices?: Infor-
mation technology
7. What two items of information are revealed on the balance sheet?: Owner-
ship and Debt
8. Which term is defined as the residual interest in the net assets of a compa-
ny?: Owners' equity
, 9. A corporation has a 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?: $350 Million. Combine the liabilities with assets.
10. Which situation should result in revenue recognition on the income state-
ment for the year ending 12/31/14 if the firm is using accrual-basis account-
ing?: In 2014, a company provides services to a customer for which cash will be
collected the next year (2015).
11. Which category on the statement of cash flows summarizes cash receipts
and payments to owners and creditors of the company?: Cash flows from
financing activities
12. Where would an investor find a summary of a company's significant ac-
counting policies?: In the notes to financial statements
13. Which assurance does an external audit report provide for its readers?
- 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: The company's financial state-
ments fairly reflect its financial position
14. Order the steps in the decision cycle from first to last: Gather information,
prepare financial statements, analyze financial statements, make decision, and
implement decision.: Prepare financial statements, analyze financial state- ments,
gather information, make decision, and implement decision
15. Partial financial information for a company is as follows:
Current assets $36,543
