WGU C213 PA AND OA COMPREHENSIVE
EXAM PREP QUESTIONS AND SOLUTIONS
VERIFIED STUDY RESOURCE
●● Which report summarizes cash collections and expenditures?
Answer: Statement of cash flows.
●● Who is concerned with healthcare benefits?
Answer: Employees.
●● What benefit does GAAP provide?
Answer: Increased comparability to other companies.
●● Who regulates audits of public companies?
Answer: Public Company Accounting Oversight Board (PCAOB).
●● What has had the most significant impact on accounting practices?
Answer: Information technology.
●● What two items appear on the balance sheet?
Answer: Debt and ownership.
, ●● What is the residual interest in net assets?
Answer: Owners' equity.
●● What is the value of long-term assets?
Answer: $350 million.
●● When is revenue recognized under accrual accounting?
Answer: When services are provided, even if cash is collected later.
●● Which cash flow category involves owners and creditors?
Answer: Financing activities.
●● Where are accounting policies disclosed?
Answer: Notes to financial statements.
●● What assurance does an external audit provide?
Answer: Financial statements fairly reflect financial position.
●● What does conservatism mean?
Answer: Recognizing losses as they occur.
EXAM PREP QUESTIONS AND SOLUTIONS
VERIFIED STUDY RESOURCE
●● Which report summarizes cash collections and expenditures?
Answer: Statement of cash flows.
●● Who is concerned with healthcare benefits?
Answer: Employees.
●● What benefit does GAAP provide?
Answer: Increased comparability to other companies.
●● Who regulates audits of public companies?
Answer: Public Company Accounting Oversight Board (PCAOB).
●● What has had the most significant impact on accounting practices?
Answer: Information technology.
●● What two items appear on the balance sheet?
Answer: Debt and ownership.
, ●● What is the residual interest in net assets?
Answer: Owners' equity.
●● What is the value of long-term assets?
Answer: $350 million.
●● When is revenue recognized under accrual accounting?
Answer: When services are provided, even if cash is collected later.
●● Which cash flow category involves owners and creditors?
Answer: Financing activities.
●● Where are accounting policies disclosed?
Answer: Notes to financial statements.
●● What assurance does an external audit provide?
Answer: Financial statements fairly reflect financial position.
●● What does conservatism mean?
Answer: Recognizing losses as they occur.
