WGU C213 PRE ASSESSMENT PRACTICE
SOLUTION 2026 VIEW AHEAD TESTED SET
◉ In January of year 1, a company began doing business as a
corporation in order to sell technology-related accessories and
services. During its first month of operations, it focused on obtaining
the financing needed to start its operations. In February of year 1,
the company sold inventory costing $25,000 for $75,000 cash.
In February of year 1, the company provided technology-related
services worth $10,000. Customers paid a total of $4,000 in cash for
these services and promised to pay the remainder the following
month.
What will be the total impact of these services provided on the
company's balance sheet other than an increase in cash of $4,000?
Choose 2 answers Answer: Accounts receivable will increase $6,000.
Retained earnings will increase $10,000.
◉ What was the 2012 net profit amount if the 2013 pro-forma net
profit of $187,000 was based on a 22% increase? Answer: $153,279
,◉ What is a common category in a statement of cash flows? Answer:
Cash from investing activities
◉ Which cash flow category would include "cash received from
investors"? Answer: Cash from financing activities
◉ Which item is an investing activity? Answer: Cash payments for
purchase of plant assets
◉ What impact does the sale of equipment have on the statement of
cash flows? Answer: Increase in cash from investing activities
◉ What is known about the direct and indirect methods of
preparing statements of cash flow? 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? Answer: $145,000
◉ Which two examples represent financial statement errors?
Choose 2 answers Answer: The accounting department
miscalculates the payroll tax due at year-end, resulting in an
inaccurate liability. & The accountant unintentionally records
amounts as revenue that were prepaid by customers but not yet
earned.
◉ Which internal control is intended to ensure that a company does
not mistakenly pay a supplier for an invoice that includes more
items than were actually received? Answer: The inventory
department counts and inspects items as received and forwards the
receiving record to accounts payable.
SOLUTION 2026 VIEW AHEAD TESTED SET
◉ In January of year 1, a company began doing business as a
corporation in order to sell technology-related accessories and
services. During its first month of operations, it focused on obtaining
the financing needed to start its operations. In February of year 1,
the company sold inventory costing $25,000 for $75,000 cash.
In February of year 1, the company provided technology-related
services worth $10,000. Customers paid a total of $4,000 in cash for
these services and promised to pay the remainder the following
month.
What will be the total impact of these services provided on the
company's balance sheet other than an increase in cash of $4,000?
Choose 2 answers Answer: Accounts receivable will increase $6,000.
Retained earnings will increase $10,000.
◉ What was the 2012 net profit amount if the 2013 pro-forma net
profit of $187,000 was based on a 22% increase? Answer: $153,279
,◉ What is a common category in a statement of cash flows? Answer:
Cash from investing activities
◉ Which cash flow category would include "cash received from
investors"? Answer: Cash from financing activities
◉ Which item is an investing activity? Answer: Cash payments for
purchase of plant assets
◉ What impact does the sale of equipment have on the statement of
cash flows? Answer: Increase in cash from investing activities
◉ What is known about the direct and indirect methods of
preparing statements of cash flow? 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? Answer: $145,000
◉ Which two examples represent financial statement errors?
Choose 2 answers Answer: The accounting department
miscalculates the payroll tax due at year-end, resulting in an
inaccurate liability. & The accountant unintentionally records
amounts as revenue that were prepaid by customers but not yet
earned.
◉ Which internal control is intended to ensure that a company does
not mistakenly pay a supplier for an invoice that includes more
items than were actually received? Answer: The inventory
department counts and inspects items as received and forwards the
receiving record to accounts payable.
