WGU C213 Accounting for Decision Makers Assessment /Pre-
Assessment Exam with Questions and well elaborated Answers
Graded A+
1. What does accounting focus on?: The impact a business's activities have on it's overall
financial performance
2. Which report summarizes cash collections and cash expenditures from operating,
investing, and financing activities over a period of time?: Statement of cash flows
3. Which users would have a primary concern with an organization's ability to provide
healthcare benefits?: Employees
4. Which benefit does a corporation gain by following Generally Accepted Ac- counting
Principals (GAAP)?: An increase in its comparability to 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 FASB
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?: Debt, Ownership
8. Which term is defined as the residual interest in the net assets of a compa- ny?:
1/
10
, Owner's equity
9. A corporation has total liabilities of $300 million, total owner's equity of
$100 million, and current assets of $50 million. What is the value of the firm's long-term
assets?: $350 million
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 the financial statements
13. What does it mean if a company has a debt ratio of 101.5%?: The company has 1.5%
more total liabilities that total assets
14. Which assurances does an external audit report provide for its readers?: -
The company's financial statements fairly reflects its financial position
15. What is consistent with a continual decline in gross profit if the firm's cost of goods
sold remains the same?: Continual decrease in sales
2/
10
Assessment Exam with Questions and well elaborated Answers
Graded A+
1. What does accounting focus on?: The impact a business's activities have on it's overall
financial performance
2. Which report summarizes cash collections and cash expenditures from operating,
investing, and financing activities over a period of time?: Statement of cash flows
3. Which users would have a primary concern with an organization's ability to provide
healthcare benefits?: Employees
4. Which benefit does a corporation gain by following Generally Accepted Ac- counting
Principals (GAAP)?: An increase in its comparability to 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 FASB
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?: Debt, Ownership
8. Which term is defined as the residual interest in the net assets of a compa- ny?:
1/
10
, Owner's equity
9. A corporation has total liabilities of $300 million, total owner's equity of
$100 million, and current assets of $50 million. What is the value of the firm's long-term
assets?: $350 million
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 the financial statements
13. What does it mean if a company has a debt ratio of 101.5%?: The company has 1.5%
more total liabilities that total assets
14. Which assurances does an external audit report provide for its readers?: -
The company's financial statements fairly reflects its financial position
15. What is consistent with a continual decline in gross profit if the firm's cost of goods
sold remains the same?: Continual decrease in sales
2/
10
