WGU C213 Final Exam Accounting for Decision
Makers Questions and Answers ()
(Verified Answers)J,
1. What does accounting focus on?
O The impact a business's activities have on its public image
O The impact a business's activities have on its relationship with customers
O The impact a business's activities have on the environment
O The impact a business's activities have on its overall financial performance
O The impact a business's activities have on its overall financial performance
2. Which report summarizes cash collections and cash expenditures from operating, investing,
and financing activities over a period of time?
O Statement of Cash Flows
O Cash flow schedule
O Summary of cash receipts
O Cash receipts and disbursements
O Statement of Cash Flows
3. Which users would have a primary concern with an organization's ability to provide
healthcare benefits?
O Suppliers
O Employees
O Vendors
O Competitors
O Employees
4. Which benefit does a corporation gain by following Generally Accepted Accounting
Principals (GAAP)?
O An increase in the amount of assets it reports
O A decrease in its income tax obligations
,O A decrease in the amount of net income it reports
O An increase in its comparability to other companies
O An increase in its comparability to other companies
5. Which body regulates a certified public accounting firm's audit practices when the firm is
auditing a large publicly traded company?
O Another certified accounting firm (CPA)
O The Public Company Accounting Oversight Board (PCAOB)
O The internal revenue service (IRS)
O The financial accounting standards board (FASB)
O The Public Company Accounting Oversight Board (PCAOB)
6. What has had the most significant impact on accounting practices?
O New product innovations
O Mobile computing
O Certification requirements
O Information Technology
O Information Technology
7. What two items of information are revealed on the balance sheet?
Choose 2 answers
O Costs
O Revenues
O Debt
O Expenses
O Ownership
O Debt
O Ownership
8. Which term is defined as the residual interest in the net assets of a company?
O Owner's Equity
O Revenues
, O Operating Income
O Liabilities
O Owner's Equity
9. A corporation has 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?
O $250 million
O $350 million
O $400 million
O $450 million
Assets = Liabilities + Equity
x + 50m = 300m + 100m
Solving for x = 350m
O $350 million
10. 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?
O In 2014, a company collects cash from a customer for services it will provide next year
(2015)
O In 2014, a company collects cash from a customer for services it provided in the previous
year (2013)
O In 2014, a company enters into a contract whereby it agrees to provide services to a
customer next year in (2015)
O In 2014, a company provide services to a customer for cash will be collected the next year
(2015)
O In 2014, a company provide services to a customer for cash will be collected the next year
(2015)
11. Which category on the statement of cash flows summarizes cash receipts and payments to
owners and creditors of the company?
O Cash flows from business activities
O Cash flows from financing activities
Makers Questions and Answers ()
(Verified Answers)J,
1. What does accounting focus on?
O The impact a business's activities have on its public image
O The impact a business's activities have on its relationship with customers
O The impact a business's activities have on the environment
O The impact a business's activities have on its overall financial performance
O The impact a business's activities have on its overall financial performance
2. Which report summarizes cash collections and cash expenditures from operating, investing,
and financing activities over a period of time?
O Statement of Cash Flows
O Cash flow schedule
O Summary of cash receipts
O Cash receipts and disbursements
O Statement of Cash Flows
3. Which users would have a primary concern with an organization's ability to provide
healthcare benefits?
O Suppliers
O Employees
O Vendors
O Competitors
O Employees
4. Which benefit does a corporation gain by following Generally Accepted Accounting
Principals (GAAP)?
O An increase in the amount of assets it reports
O A decrease in its income tax obligations
,O A decrease in the amount of net income it reports
O An increase in its comparability to other companies
O An increase in its comparability to other companies
5. Which body regulates a certified public accounting firm's audit practices when the firm is
auditing a large publicly traded company?
O Another certified accounting firm (CPA)
O The Public Company Accounting Oversight Board (PCAOB)
O The internal revenue service (IRS)
O The financial accounting standards board (FASB)
O The Public Company Accounting Oversight Board (PCAOB)
6. What has had the most significant impact on accounting practices?
O New product innovations
O Mobile computing
O Certification requirements
O Information Technology
O Information Technology
7. What two items of information are revealed on the balance sheet?
Choose 2 answers
O Costs
O Revenues
O Debt
O Expenses
O Ownership
O Debt
O Ownership
8. Which term is defined as the residual interest in the net assets of a company?
O Owner's Equity
O Revenues
, O Operating Income
O Liabilities
O Owner's Equity
9. A corporation has 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?
O $250 million
O $350 million
O $400 million
O $450 million
Assets = Liabilities + Equity
x + 50m = 300m + 100m
Solving for x = 350m
O $350 million
10. 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?
O In 2014, a company collects cash from a customer for services it will provide next year
(2015)
O In 2014, a company collects cash from a customer for services it provided in the previous
year (2013)
O In 2014, a company enters into a contract whereby it agrees to provide services to a
customer next year in (2015)
O In 2014, a company provide services to a customer for cash will be collected the next year
(2015)
O In 2014, a company provide services to a customer for cash will be collected the next year
(2015)
11. Which category on the statement of cash flows summarizes cash receipts and payments to
owners and creditors of the company?
O Cash flows from business activities
O Cash flows from financing activities
