WGU C213 PRE ASSESSMENT CERTIFICATION
TEST 2026 COMPREHENSIVE STUDY GUIDE
◉ Which cash flow category would include "cash received from
investors"?
- Cash from financing activities
- Cash from charitable activities
- Cash from investing activities
- Cash from sponsoring activities Answer: Cash from financing
activities
◉ Which item is an investing activity
- Cash receipts from dividend revenue
- Cash receipts from issuance of stock
- Cash payments for dividends
- Cash payments for purchase of plant assets Answer: Cash
payments for purchase of plant assets
◉ What impact does the sale of equipment have on the statement of
cash flows?
- Increase in cash from investing activities
- Increase in cash from operating activities
,- Increase in cash from financing activities
- Decrease in cash from operating activities Answer: An increase in
cash from investing activities
◉ What is known about the direct and indirect methods of
preparing statements of cash flows?
- The direct method is more popular among large US companies
- The indirect method is more popular among large US companies
- Both methods have the same popularity among large US companies
- Neither method is very popular among large US companies
Answer: The indirect method is more popular among large U.S.
companies.
◉ A company's statement of cash flows includes the following cash
transactions:
Sales 1,250,000
Inventory Purchase -750,000
Property and Equipment Purchase -270,000
Interest Payment on Long-Term Debt -25,000
Payment of Wages -315,000
Payment of Rent -40,000
Borrowing Long-Term Debt
200,000
, Payment of Cash Dividends -15,000
Repurchase of Treasury Stock -40,000
Total Cash Flows -5,000
Assuming the company uses US GAAP standards, what is the total
cash flow from financing activities?
$175,000
$160,000
$145,000
$120,000 Answer: 145,000. 200,000 - 15,000 - 40,000 = 145,000.
◉ Which two examples represent financial statement errors?
Choose 2 answers
- An accounting employee overpays a supplier and receives a portion
of the excess as a kickback
- The accounting department miscalculates the payroll tax due at
year-end, resulting in an inaccurate liability
- The outside auditor disagrees with the amount reported as an
allowance for uncollectible accounts receivable
- The accountant unintentionally records amounts as revenue that
were prepaid by customers but not yet earned Answer: The
accounting department miscalculates the payroll tax due at year-
end, resulting in an inaccurate liability. The accountant
TEST 2026 COMPREHENSIVE STUDY GUIDE
◉ Which cash flow category would include "cash received from
investors"?
- Cash from financing activities
- Cash from charitable activities
- Cash from investing activities
- Cash from sponsoring activities Answer: Cash from financing
activities
◉ Which item is an investing activity
- Cash receipts from dividend revenue
- Cash receipts from issuance of stock
- Cash payments for dividends
- Cash payments for purchase of plant assets Answer: Cash
payments for purchase of plant assets
◉ What impact does the sale of equipment have on the statement of
cash flows?
- Increase in cash from investing activities
- Increase in cash from operating activities
,- Increase in cash from financing activities
- Decrease in cash from operating activities Answer: An increase in
cash from investing activities
◉ What is known about the direct and indirect methods of
preparing statements of cash flows?
- The direct method is more popular among large US companies
- The indirect method is more popular among large US companies
- Both methods have the same popularity among large US companies
- Neither method is very popular among large US companies
Answer: The indirect method is more popular among large U.S.
companies.
◉ A company's statement of cash flows includes the following cash
transactions:
Sales 1,250,000
Inventory Purchase -750,000
Property and Equipment Purchase -270,000
Interest Payment on Long-Term Debt -25,000
Payment of Wages -315,000
Payment of Rent -40,000
Borrowing Long-Term Debt
200,000
, Payment of Cash Dividends -15,000
Repurchase of Treasury Stock -40,000
Total Cash Flows -5,000
Assuming the company uses US GAAP standards, what is the total
cash flow from financing activities?
$175,000
$160,000
$145,000
$120,000 Answer: 145,000. 200,000 - 15,000 - 40,000 = 145,000.
◉ Which two examples represent financial statement errors?
Choose 2 answers
- An accounting employee overpays a supplier and receives a portion
of the excess as a kickback
- The accounting department miscalculates the payroll tax due at
year-end, resulting in an inaccurate liability
- The outside auditor disagrees with the amount reported as an
allowance for uncollectible accounts receivable
- The accountant unintentionally records amounts as revenue that
were prepaid by customers but not yet earned Answer: The
accounting department miscalculates the payroll tax due at year-
end, resulting in an inaccurate liability. The accountant
