PRE-ASSESSMENT ACCOUNTING WGU C213 ACCOUNTING
FOR DECISION MAKERS FINAL EXAM
What does accounting focus on?
- The impact a business's activities have on its
relationships with customers
- The impact a business's activities have on the
environment.
- The impact a business's activities have on its public
image.
- The impact a business's activities have on its overall
financial performance. - ANSWER ->The impact a
business's activities on its overall financial performance.
Which report summarizes cash collections and cash
expenditures from operating, investing, and financing
activities over a period of time?
- Cash receipts and disbursements sheet
- Cash flow schedule
- Summary of cash receipts
- Statement of cash flows - ANSWER ->Statement of cash
flows
Which users would have a primary concern with an
organization's ability to provide healthcare benefits?
,- Competitors
- Employees
- Vendors
- Suppliers - ANSWER ->Employees
Which benefit does a corporation gain by following
Generally Accepted Accounting Principles (GAAP)?
- A decrease in its income tax obligations
- A decrease in the amount of net income it reports
- An increase in its comparability to other companies
- An increase in the amount of assets it reports - 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?
- The Public Company Accounting Oversight Board
(PCAOB)
- The Financial Accounting Standards Board (FASB)
- Another certified public accounting firm (CPA)
- The Internal Revenue Service (IRS) - ANSWER ->The
Public Company Accounting Oversight Board (PCAOB)
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 ->Ownership and Debt
Which term is defined as the residual interest in the net
assets of a company? - ANSWER ->Owners' equity
A corporation has a 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. Combine the liabilities with
assets.
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 financial statements
FOR DECISION MAKERS FINAL EXAM
What does accounting focus on?
- The impact a business's activities have on its
relationships with customers
- The impact a business's activities have on the
environment.
- The impact a business's activities have on its public
image.
- The impact a business's activities have on its overall
financial performance. - ANSWER ->The impact a
business's activities on its overall financial performance.
Which report summarizes cash collections and cash
expenditures from operating, investing, and financing
activities over a period of time?
- Cash receipts and disbursements sheet
- Cash flow schedule
- Summary of cash receipts
- Statement of cash flows - ANSWER ->Statement of cash
flows
Which users would have a primary concern with an
organization's ability to provide healthcare benefits?
,- Competitors
- Employees
- Vendors
- Suppliers - ANSWER ->Employees
Which benefit does a corporation gain by following
Generally Accepted Accounting Principles (GAAP)?
- A decrease in its income tax obligations
- A decrease in the amount of net income it reports
- An increase in its comparability to other companies
- An increase in the amount of assets it reports - 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?
- The Public Company Accounting Oversight Board
(PCAOB)
- The Financial Accounting Standards Board (FASB)
- Another certified public accounting firm (CPA)
- The Internal Revenue Service (IRS) - ANSWER ->The
Public Company Accounting Oversight Board (PCAOB)
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 ->Ownership and Debt
Which term is defined as the residual interest in the net
assets of a company? - ANSWER ->Owners' equity
A corporation has a 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. Combine the liabilities with
assets.
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 financial statements
