1
WGU- C213 Pre- Assessment (Latest Update
) Accounting for Decision Makers |
Questions with Answers | Grade A | 100%
Correct Verified Answers.
1. **Which of the following is an overall measure of the performance of a
business entity’s activities?**
A) Gross profit
B) Net income (or net loss)
C) Total assets
D) Revenue
ANS B) Net income (or net loss)
2. **What is known about the direct and indirect methods of preparing
statements of cash flow?**
A) The direct method is more popular among large U.S. companies
B) The indirect method is more popular among large U.S. companies
, 2
C) Both methods yield different cash flow totals
D) The indirect method excludes non-cash expenses
ANS B) The indirect method is more popular among large U.S. companies
3. **Revenue:**
A) The value of the goods and services provided by a company in its business
operations
B) The total expenses incurred
C) The net income after taxes
D) The cash reserves of the company
ANS A) The value of the goods and services provided by a company in its
business operations
4. **Which item is an investing activity?**
A) Cash payments for purchase of plant assets
B) Cash received from customers
C) Cash paid for dividends
D) Cash from financing activities
, 3
ANS A) Cash payments for purchase of plant assets
5. **Which cash flow category would include “cash received from
investors”?**
A) Cash from operating activities
B) Cash from financing activities
C) Cash from investing activities
D) Cash from non-operating activities
ANS B) Cash from financing activities
6. **What is a common category in a statement of cash flows?**
A) Cash from operating activities
B) Cash from revenue activities
C) Cash from expense activities
D) Cash from equity activities
ANS A) Cash from operating activities
7. **Historical Cost Convention:**
, 4
A) An accounting technique that values an asset for balance sheet purposes at
the price paid for the asset at the time of its acquisition
B) A method for recognizing revenue
C) A technique for calculating depreciation
D) A budgeting method
ANS A) An accounting technique that values an asset for balance sheet
purposes at the price paid for the asset at the time of its acquisition
8. **Liquidity:**
A) The ease with which an item can be turned into cash
B) The total value of assets
C) The company’s profitability
D) The debt-to-equity ratio
ANS A) The ease with which an item can be turned into cash
9. **Net Assets:**
A) Total assets minus total liabilities
B) Total revenue minus expenses
WGU- C213 Pre- Assessment (Latest Update
) Accounting for Decision Makers |
Questions with Answers | Grade A | 100%
Correct Verified Answers.
1. **Which of the following is an overall measure of the performance of a
business entity’s activities?**
A) Gross profit
B) Net income (or net loss)
C) Total assets
D) Revenue
ANS B) Net income (or net loss)
2. **What is known about the direct and indirect methods of preparing
statements of cash flow?**
A) The direct method is more popular among large U.S. companies
B) The indirect method is more popular among large U.S. companies
, 2
C) Both methods yield different cash flow totals
D) The indirect method excludes non-cash expenses
ANS B) The indirect method is more popular among large U.S. companies
3. **Revenue:**
A) The value of the goods and services provided by a company in its business
operations
B) The total expenses incurred
C) The net income after taxes
D) The cash reserves of the company
ANS A) The value of the goods and services provided by a company in its
business operations
4. **Which item is an investing activity?**
A) Cash payments for purchase of plant assets
B) Cash received from customers
C) Cash paid for dividends
D) Cash from financing activities
, 3
ANS A) Cash payments for purchase of plant assets
5. **Which cash flow category would include “cash received from
investors”?**
A) Cash from operating activities
B) Cash from financing activities
C) Cash from investing activities
D) Cash from non-operating activities
ANS B) Cash from financing activities
6. **What is a common category in a statement of cash flows?**
A) Cash from operating activities
B) Cash from revenue activities
C) Cash from expense activities
D) Cash from equity activities
ANS A) Cash from operating activities
7. **Historical Cost Convention:**
, 4
A) An accounting technique that values an asset for balance sheet purposes at
the price paid for the asset at the time of its acquisition
B) A method for recognizing revenue
C) A technique for calculating depreciation
D) A budgeting method
ANS A) An accounting technique that values an asset for balance sheet
purposes at the price paid for the asset at the time of its acquisition
8. **Liquidity:**
A) The ease with which an item can be turned into cash
B) The total value of assets
C) The company’s profitability
D) The debt-to-equity ratio
ANS A) The ease with which an item can be turned into cash
9. **Net Assets:**
A) Total assets minus total liabilities
B) Total revenue minus expenses
