WGU C213 TEST BANK EXAMS SET
COMPLETE QUESTIONS AND ANSWERS 2026
GRADED A+.
⫸ 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
COMPLETE QUESTIONS AND ANSWERS 2026
GRADED A+.
⫸ 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
