WGU C213 PA AND OA UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
COMPREHENSIVE STUDY GUIDE
●● Statement of cash flows
Answer: Which report summarizes cash collections and cash
expenditures from operating, investing, and financing activities over a
period of time?
●● Employees
Answer: Which users would have a primary concern with an
organization's ability to provide healthcare benefits?
●● An increase in its compatibility to other companies
Answer: Which benefit does a corporation gain by following Generally
Accepted Accounting Principles (GAPP)?
●● The Public Company Accounting Oversight Board (PACOB)
Answer: Which body regulates a certified public accounting firm's audit
practices when the firm is auditing a large publicly traded company?
●● Information technology
,Answer: What has had the most significant impact on Accounting
practices?
●● Ownership and Debt
Answer: What two items of information are revealed on the balance
sheet?
●● Owners equity
Answer: Which term is defined as the residual in the net assets of a
company?
●● In 2014, a company provides services to a customer for which cash
will be collected the next year (2015).
Answer: Which situation should result in revenue recognition on the
income statement for the year ending 12/31/14 if the firm is using
accrual accounting?
●● Cash from financing activities
Answer: Which category on the statement of cash flows summarizes
cash receipts and payments to owners and creditors of the company?
●● In the notes to financial statements
Answer: Where would an investor find a summary of a company's
significant accounting policies?
,●● The company's financial statements fairly reflect its financial
position
Answer: Which assurance does an external audit report provide for its
readers?
●● Reliable
Answer: Information that can be verified
●● Relevant
Answer: Information having to do with the matter at hand
●● Material
Answer: Information that is important enough to make a difference
●● Conservatism
Answer: Information related to recognizing losses as they occur
●● Continual decrease in sales
Answer: What is consistent with a continual decline in gross profit if the
firm's cost of goods sold remains the same?
●● Notes payable expected to be paid in 18 months
, Answer: Which form of debt should be reported in the long-term
liability category?
●● Operating expenses &
Ordinary gains and losses
Answer: Which values affect the measurement of net income?
●● Gross profit &
Income from operations
Answer: Which items' subtotals are included in a multi-step income
statement?
●● Cash from investing activities
Answer: What is a common category in a statement of cash flows?
●● Cash from financing activities
Answer: Which cash flow category would include "cash received from
investors"?
●● Cash payments for purchase of plant assets
Answer: Which item is an investing activity?
●● Increase in cash from investing activities
QUESTIONS AND CORRECT ANSWERS
COMPREHENSIVE STUDY GUIDE
●● Statement of cash flows
Answer: Which report summarizes cash collections and cash
expenditures from operating, investing, and financing activities over a
period of time?
●● Employees
Answer: Which users would have a primary concern with an
organization's ability to provide healthcare benefits?
●● An increase in its compatibility to other companies
Answer: Which benefit does a corporation gain by following Generally
Accepted Accounting Principles (GAPP)?
●● The Public Company Accounting Oversight Board (PACOB)
Answer: Which body regulates a certified public accounting firm's audit
practices when the firm is auditing a large publicly traded company?
●● Information technology
,Answer: What has had the most significant impact on Accounting
practices?
●● Ownership and Debt
Answer: What two items of information are revealed on the balance
sheet?
●● Owners equity
Answer: Which term is defined as the residual in the net assets of a
company?
●● In 2014, a company provides services to a customer for which cash
will be collected the next year (2015).
Answer: Which situation should result in revenue recognition on the
income statement for the year ending 12/31/14 if the firm is using
accrual accounting?
●● Cash from financing activities
Answer: Which category on the statement of cash flows summarizes
cash receipts and payments to owners and creditors of the company?
●● In the notes to financial statements
Answer: Where would an investor find a summary of a company's
significant accounting policies?
,●● The company's financial statements fairly reflect its financial
position
Answer: Which assurance does an external audit report provide for its
readers?
●● Reliable
Answer: Information that can be verified
●● Relevant
Answer: Information having to do with the matter at hand
●● Material
Answer: Information that is important enough to make a difference
●● Conservatism
Answer: Information related to recognizing losses as they occur
●● Continual decrease in sales
Answer: What is consistent with a continual decline in gross profit if the
firm's cost of goods sold remains the same?
●● Notes payable expected to be paid in 18 months
, Answer: Which form of debt should be reported in the long-term
liability category?
●● Operating expenses &
Ordinary gains and losses
Answer: Which values affect the measurement of net income?
●● Gross profit &
Income from operations
Answer: Which items' subtotals are included in a multi-step income
statement?
●● Cash from investing activities
Answer: What is a common category in a statement of cash flows?
●● Cash from financing activities
Answer: Which cash flow category would include "cash received from
investors"?
●● Cash payments for purchase of plant assets
Answer: Which item is an investing activity?
●● Increase in cash from investing activities
