WGU C213 Pre Assessment 2022/
Strategies Questions & Detailed
Solutions.
Terms in this set (92)
What does accounting focus The impact a business's activities have on its overall financial
on? performance
Which report summarizes Statement of cash flows
cash collections and cash
expenditures from
operating, investing, and
financing activities over a
period of time?
Which users would have a Employees
primary concern with an
organization's ability to
provide healthcare benefits?
Which body regulates a The Public Company Accounting Oversight Board
certified public accounting (PCAOB)
firm's audit practices when
the firm is auditing a large
publicly traded company?
Information technology
What has had the most
significant impact on
accounting practices?
,What two items of Ownership.
information are revealed on Debt
the balance sheet? Choose 2
answers
Which term is defined as the Owners' equity
residual interest in the net
assets of a company?
A corporation has total $350 million
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?
Which situation should result In 2014, a company provides services to a customer for
in revenue recognition on the which cash will be collected the next year (2015).
income statement for the
year ending 12/31/14 if the
firm is using accrual-basis
accounting?
Which category on the Cash flows from financing activities
statement of cash flows
summarizes cash receipts
and payments to owners and
creditors of the company?
In the notes to financial statements
Where would an investor
find a summary of a
company's significant
accounting policies?
,Which assurance does an The company's financial statements fairly reflect its financial
external audit report provide position
for its readers?
Reliable Information that can be verified
Relevant Information having to do with the matter at hand
Material Information that is important enough to make a difference
Conservatism Information related to recognizing losses as they occur
What are steps in the 1 Prepare financial statements.
decision cycle? 2 Analyze financial statements.
3 Gather information.
4 Make decision.
5 Implement decision.
11.0
Partial financial
information for a company is
as follows:
Current assets $36,543
Total assets $58,719
Current liabilities $24,824
Total liabilities $48,561
Stockholders' equity
$10,158
Sales $46,997
Net Income $ 3,761
Market value of shares
$41,316
What is the price-earnings
(PE) ratio for this company?
, What is consistent with a Continual decrease in sales
continual decline in gross
profit if the firm's cost of
goods sold remains the same?
Which two cash flow $6,991/$5,486. $5,220/$1,875.
adequacy ratios represent a
cash cow?
Which formula yields a cash Cash before interest and taxes of $11,000 / cash paid for
times interest earned ratio of interest of $1,000
11?
Notes payable expected to be paid in 18 months
Which form of debt should
be reported in the long-term
liability category?
Strategies Questions & Detailed
Solutions.
Terms in this set (92)
What does accounting focus The impact a business's activities have on its overall financial
on? performance
Which report summarizes Statement of cash flows
cash collections and cash
expenditures from
operating, investing, and
financing activities over a
period of time?
Which users would have a Employees
primary concern with an
organization's ability to
provide healthcare benefits?
Which body regulates a The Public Company Accounting Oversight Board
certified public accounting (PCAOB)
firm's audit practices when
the firm is auditing a large
publicly traded company?
Information technology
What has had the most
significant impact on
accounting practices?
,What two items of Ownership.
information are revealed on Debt
the balance sheet? Choose 2
answers
Which term is defined as the Owners' equity
residual interest in the net
assets of a company?
A corporation has total $350 million
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?
Which situation should result In 2014, a company provides services to a customer for
in revenue recognition on the which cash will be collected the next year (2015).
income statement for the
year ending 12/31/14 if the
firm is using accrual-basis
accounting?
Which category on the Cash flows from financing activities
statement of cash flows
summarizes cash receipts
and payments to owners and
creditors of the company?
In the notes to financial statements
Where would an investor
find a summary of a
company's significant
accounting policies?
,Which assurance does an The company's financial statements fairly reflect its financial
external audit report provide position
for its readers?
Reliable Information that can be verified
Relevant Information having to do with the matter at hand
Material Information that is important enough to make a difference
Conservatism Information related to recognizing losses as they occur
What are steps in the 1 Prepare financial statements.
decision cycle? 2 Analyze financial statements.
3 Gather information.
4 Make decision.
5 Implement decision.
11.0
Partial financial
information for a company is
as follows:
Current assets $36,543
Total assets $58,719
Current liabilities $24,824
Total liabilities $48,561
Stockholders' equity
$10,158
Sales $46,997
Net Income $ 3,761
Market value of shares
$41,316
What is the price-earnings
(PE) ratio for this company?
, What is consistent with a Continual decrease in sales
continual decline in gross
profit if the firm's cost of
goods sold remains the same?
Which two cash flow $6,991/$5,486. $5,220/$1,875.
adequacy ratios represent a
cash cow?
Which formula yields a cash Cash before interest and taxes of $11,000 / cash paid for
times interest earned ratio of interest of $1,000
11?
Notes payable expected to be paid in 18 months
Which form of debt should
be reported in the long-term
liability category?
