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WGU C213 Pre Assessment 2025/2026
Exam Questions and Detailed Answers |
Get it 100% Correct Answers
What does accounting focus on? - 🧠 ANSWER ✔✔The impact a business's
activities have on its overall financial performance
Which report summarizes cash collections and cash expenditures from operating,
investing, and financing activities over a period of time? - 🧠 ANSWER
✔✔Statement of cash flows
Which users would have a primary concern with an organization's ability to
provide healthcare benefits? - 🧠 ANSWER ✔✔Employees
Which body regulates a certified public accounting firm's audit practices when the
firm is auditing a large publicly traded company? - 🧠 ANSWER ✔✔The Public
Company Accounting Oversight Board (PCAOB)
What has had the most significant impact on accounting practices? - 🧠 ANSWER
✔✔Information technology
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
1
STATEMENT. ALL RIGHTS RESERVED
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What two items of information are revealed on the balance sheet?
Choose 2 answers - 🧠 ANSWER ✔✔Ownership.
Debt
Which term is defined as the residual interest in the net assets of a company? - 🧠
ANSWER ✔✔Owners' equity
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
Which situation should result in revenue recognition on the income statement for
the year ending 12/31/14 if the firm is using accrual-basis accounting? - 🧠
ANSWER ✔✔In 2014, a company provides services to a customer for which cash
will be collected the next year (2015).
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
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
,3
Where would an investor find a summary of a company's significant accounting
policies? - 🧠 ANSWER ✔✔In the notes to financial statements
Which assurance does an external audit report provide for its readers? - 🧠
ANSWER ✔✔The company's financial statements fairly reflect its financial
position
Reliable - 🧠 ANSWER ✔✔Information that can be verified
Relevant - 🧠 ANSWER ✔✔Information having to do with the matter at hand
Material - 🧠 ANSWER ✔✔Information that is important enough to make a
difference
Conservatism - 🧠 ANSWER ✔✔Information related to recognizing losses as they
occur
What are steps in the decision cycle? - 🧠 ANSWER ✔✔1 Prepare financial
statements.
2 Analyze financial statements.
3 Gather information.
4 Make decision.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
, 4
5 Implement decision.
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? - 🧠 ANSWER ✔✔11.0
What is consistent with a continual decline in gross profit if the firm's cost of
goods sold remains the same? - 🧠 ANSWER ✔✔Continual decrease in sales
Which two cash flow adequacy ratios represent a cash cow? - 🧠 ANSWER
✔✔$6,991/$5,486. $5,220/$1,875.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
4
STATEMENT. ALL RIGHTS RESERVED
WGU C213 Pre Assessment 2025/2026
Exam Questions and Detailed Answers |
Get it 100% Correct Answers
What does accounting focus on? - 🧠 ANSWER ✔✔The impact a business's
activities have on its overall financial performance
Which report summarizes cash collections and cash expenditures from operating,
investing, and financing activities over a period of time? - 🧠 ANSWER
✔✔Statement of cash flows
Which users would have a primary concern with an organization's ability to
provide healthcare benefits? - 🧠 ANSWER ✔✔Employees
Which body regulates a certified public accounting firm's audit practices when the
firm is auditing a large publicly traded company? - 🧠 ANSWER ✔✔The Public
Company Accounting Oversight Board (PCAOB)
What has had the most significant impact on accounting practices? - 🧠 ANSWER
✔✔Information technology
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
1
STATEMENT. ALL RIGHTS RESERVED
,2
What two items of information are revealed on the balance sheet?
Choose 2 answers - 🧠 ANSWER ✔✔Ownership.
Debt
Which term is defined as the residual interest in the net assets of a company? - 🧠
ANSWER ✔✔Owners' equity
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
Which situation should result in revenue recognition on the income statement for
the year ending 12/31/14 if the firm is using accrual-basis accounting? - 🧠
ANSWER ✔✔In 2014, a company provides services to a customer for which cash
will be collected the next year (2015).
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
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
,3
Where would an investor find a summary of a company's significant accounting
policies? - 🧠 ANSWER ✔✔In the notes to financial statements
Which assurance does an external audit report provide for its readers? - 🧠
ANSWER ✔✔The company's financial statements fairly reflect its financial
position
Reliable - 🧠 ANSWER ✔✔Information that can be verified
Relevant - 🧠 ANSWER ✔✔Information having to do with the matter at hand
Material - 🧠 ANSWER ✔✔Information that is important enough to make a
difference
Conservatism - 🧠 ANSWER ✔✔Information related to recognizing losses as they
occur
What are steps in the decision cycle? - 🧠 ANSWER ✔✔1 Prepare financial
statements.
2 Analyze financial statements.
3 Gather information.
4 Make decision.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
, 4
5 Implement decision.
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? - 🧠 ANSWER ✔✔11.0
What is consistent with a continual decline in gross profit if the firm's cost of
goods sold remains the same? - 🧠 ANSWER ✔✔Continual decrease in sales
Which two cash flow adequacy ratios represent a cash cow? - 🧠 ANSWER
✔✔$6,991/$5,486. $5,220/$1,875.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
4
STATEMENT. ALL RIGHTS RESERVED
