WGU C213 Accounting for Decision Makers OA Study Guide
Exam with Questions and Correct Answers
100% Guaranteed Pass
1. The impact a business's activities have on its overall financial performance-
: What does accounting focus on?
2. Statement of cash flows: Which report summarizes cash collections and cash
expenditures from operating, investing, and financing activities over a period of time?
3. Employees: Which users would have a primary concern with an organization'sability to
provide healthcare benefits?
4. An increase in its compatibility to other companies: Which benefit does a corporation
gain by following Generally Accepted Accounting Principles (GAPP)?
5. The Public Company Accounting Oversight Board (PACOB): Which body regulates a
certified public accounting firm's audit practices when the firm is auditinga large publicly
traded company?
6. Information technology: What has had the most significant impact on Account-ing
practices?
7. Ownership and Debt: What two items of information are revealed on the balancesheet?
8. Owners equity: Which term is defined as the residual in the net assets of acompany?
9. In 2014, a company provides services to a customer for which cash will be collected
the next year (2015).: Which situation should result in revenue recogni- tion on the income
statement for the year ending 12/31/14 if the firm is using accrualaccounting?
10. Cash from financing activities: Which category on the statement of cash flows
,summarizes cash receipts and payments to owners and creditors of the company?
11. In the notes to financial statements: Where would an investor find a summary of a
company's significant accounting policies?
12. The company's financial statements fairly reflect its financial position: -
Which assurance does an external audit report provide for its readers?
13. Reliable: Information that can be verified
14. Relevant: Information having to do with the matter at hand
15. Material: Information that is important enough to make a difference
16. Conservatism: Information related to recognizing losses as they occur
17. Continual decrease in sales: What is consistent with a continual decline ingross
profit if the firm's cost of goods sold remains the same?
18. Notes payable expected to be paid in 18 months: Which form of debt shouldbe
reported in the long-term liability category?
19. Operating expenses &
Ordinary gains and losses: Which values affect the measurement of net income?
, 20. Gross profit &
Income from operations: Which items' subtotals are included in a multi-step in-come
statement?
21. Cash from investing activities: What is a common category in a statement ofcash
flows?
22. Cash from financing activities: Which cash flow category would include "cashreceived
from investors"?
23. Cash payments for purchase of plant assets: Which item is an investingactivity?
24. Increase in cash from investing activities: What impact does the sale ofequipment
have on the statement of cash flows?
25. The indirect method is more popular among large U.S. companies: What isknown
about the direct and indirect methods of preparing statements of cash flow?
26. The inventory department counts and inspects items as received and forwards the
receiving record to accounts payable.: Which internal control is intended to ensure that a
company does not mistakenly pay a supplier for an invoicethat includes more items than
were actually received?
27. Pressure to meet internal sales goals &
Preparing to qualify for a bank loan: What are common reasons for managers tomanipulate
reported earnings?
28. Firms must not provide certain non-audit services to audit clients, such as
management functions or legal services. &
Firms must report to and be retained by the audit committee rather than the CFO or other
company management.: Which requirements must accounting firmsthat audit public
companies meet under the Sarbanes-Oxley Act?
Exam with Questions and Correct Answers
100% Guaranteed Pass
1. The impact a business's activities have on its overall financial performance-
: What does accounting focus on?
2. Statement of cash flows: Which report summarizes cash collections and cash
expenditures from operating, investing, and financing activities over a period of time?
3. Employees: Which users would have a primary concern with an organization'sability to
provide healthcare benefits?
4. An increase in its compatibility to other companies: Which benefit does a corporation
gain by following Generally Accepted Accounting Principles (GAPP)?
5. The Public Company Accounting Oversight Board (PACOB): Which body regulates a
certified public accounting firm's audit practices when the firm is auditinga large publicly
traded company?
6. Information technology: What has had the most significant impact on Account-ing
practices?
7. Ownership and Debt: What two items of information are revealed on the balancesheet?
8. Owners equity: Which term is defined as the residual in the net assets of acompany?
9. In 2014, a company provides services to a customer for which cash will be collected
the next year (2015).: Which situation should result in revenue recogni- tion on the income
statement for the year ending 12/31/14 if the firm is using accrualaccounting?
10. Cash from financing activities: Which category on the statement of cash flows
,summarizes cash receipts and payments to owners and creditors of the company?
11. In the notes to financial statements: Where would an investor find a summary of a
company's significant accounting policies?
12. The company's financial statements fairly reflect its financial position: -
Which assurance does an external audit report provide for its readers?
13. Reliable: Information that can be verified
14. Relevant: Information having to do with the matter at hand
15. Material: Information that is important enough to make a difference
16. Conservatism: Information related to recognizing losses as they occur
17. Continual decrease in sales: What is consistent with a continual decline ingross
profit if the firm's cost of goods sold remains the same?
18. Notes payable expected to be paid in 18 months: Which form of debt shouldbe
reported in the long-term liability category?
19. Operating expenses &
Ordinary gains and losses: Which values affect the measurement of net income?
, 20. Gross profit &
Income from operations: Which items' subtotals are included in a multi-step in-come
statement?
21. Cash from investing activities: What is a common category in a statement ofcash
flows?
22. Cash from financing activities: Which cash flow category would include "cashreceived
from investors"?
23. Cash payments for purchase of plant assets: Which item is an investingactivity?
24. Increase in cash from investing activities: What impact does the sale ofequipment
have on the statement of cash flows?
25. The indirect method is more popular among large U.S. companies: What isknown
about the direct and indirect methods of preparing statements of cash flow?
26. The inventory department counts and inspects items as received and forwards the
receiving record to accounts payable.: Which internal control is intended to ensure that a
company does not mistakenly pay a supplier for an invoicethat includes more items than
were actually received?
27. Pressure to meet internal sales goals &
Preparing to qualify for a bank loan: What are common reasons for managers tomanipulate
reported earnings?
28. Firms must not provide certain non-audit services to audit clients, such as
management functions or legal services. &
Firms must report to and be retained by the audit committee rather than the CFO or other
company management.: Which requirements must accounting firmsthat audit public
companies meet under the Sarbanes-Oxley Act?
