WGU C213 ACCOUNTING FOR
DECISION MAKERS PVAC QUIZZES
WITH ACCURATE ANSWERS.
What does accounting focus on? ANSWER :-The impact a business's activities have on it's 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 benefit does a corporation gain by following Generally Accepted Accounting Principals (GAAP)?
ANSWER :-An increase in its comparability to other companies
Which body regulates a certified public accounting firm's audit practices when the firm is auditing a
large publicly traded company? ANSWER :-The FASB
What has had the most significant impact on accounting practices? ANSWER :-Information Technology
What two items of information are revealed on the balance sheet? ANSWER :-Debt, Ownership
Which term is defined as the residual interest in the net assets of a company? ANSWER :-Owner's
equity
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? 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
Where would an investor find a summary of a company's significant accounting policies? ANSWER :-In
the notes to the financial statements
What does it mean if a company has a debt ratio of 101.5%? ANSWER :-The company has 1.5% more
total liabilities that total assets
Which assurances does an external audit report provide for its readers? ANSWER :-The company's
financial statements fairly reflects its financial position
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 formula yields a cash time interest earned ratio of 11? ANSWER :-Cash before interest and taxes
of $11,000/cash paid for interest of $1,000
Which form of debt should be reported in the long-term liability category? ANSWER :-Notes payable
expected to be paid in 18 months
Which two values affect the measurement of net income? ANSWER :-Dividend paid, operating
expenses
Which two items subtotals are included in a multi-step income statement? ANSWER :-gross profit,
income from operations
DECISION MAKERS PVAC QUIZZES
WITH ACCURATE ANSWERS.
What does accounting focus on? ANSWER :-The impact a business's activities have on it's 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 benefit does a corporation gain by following Generally Accepted Accounting Principals (GAAP)?
ANSWER :-An increase in its comparability to other companies
Which body regulates a certified public accounting firm's audit practices when the firm is auditing a
large publicly traded company? ANSWER :-The FASB
What has had the most significant impact on accounting practices? ANSWER :-Information Technology
What two items of information are revealed on the balance sheet? ANSWER :-Debt, Ownership
Which term is defined as the residual interest in the net assets of a company? ANSWER :-Owner's
equity
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? 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
Where would an investor find a summary of a company's significant accounting policies? ANSWER :-In
the notes to the financial statements
What does it mean if a company has a debt ratio of 101.5%? ANSWER :-The company has 1.5% more
total liabilities that total assets
Which assurances does an external audit report provide for its readers? ANSWER :-The company's
financial statements fairly reflects its financial position
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 formula yields a cash time interest earned ratio of 11? ANSWER :-Cash before interest and taxes
of $11,000/cash paid for interest of $1,000
Which form of debt should be reported in the long-term liability category? ANSWER :-Notes payable
expected to be paid in 18 months
Which two values affect the measurement of net income? ANSWER :-Dividend paid, operating
expenses
Which two items subtotals are included in a multi-step income statement? ANSWER :-gross profit,
income from operations
