WGU C213 PA and OA Comprehensive Study
Materials with Complete Solutions
The impact a business's activities have on its overall financial performance - ANS-
What does accounting focus on?
Statement of cash flows - ANS-Which report summarizes cash collections and cash
expenditures from operating, investing, and financing activities over a period of
time?
Employees - ANS-Which users would have a primary concern with an organization's
ability to provide healthcare benefits?
An increase in its compatibility to other companies - ANS-Which benefit does a
corporation gain by following Generally Accepted Accounting Principles (GAPP)?
The Public Company Accounting Oversight Board (PACOB) - ANS-Which body
regulates a certified public accounting firm's audit practices when the firm is
auditing a large publicly traded company?
Information technology - ANS-What has had the most significant impact on
Accounting practices?
Ownership and Debt - ANS-What two items of information are revealed on the
balance sheet?
Owners equity - ANS-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). - ANS-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 - ANS-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 - ANS-Where would an investor find a summary
of a company's significant accounting policies?
The company's financial statements fairly reflect its financial position - ANS-Which
assurance does an external audit report provide for its readers?
Reliable - ANS-Information that can be verified
,Relevant - ANS-Information having to do with the matter at hand
Material - ANS-Information that is important enough to make a difference
Conservatism - ANS-Information related to recognizing losses as they occur
Continual decrease in sales - ANS-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 - ANS-Which form of debt should
be reported in the long-term liability category?
Operating expenses &
Ordinary gains and losses - ANS-Which values affect the measurement of net
income?
Gross profit &
Income from operations - ANS-Which items' subtotals are included in a multi-step
income statement?
Cash from investing activities - ANS-What is a common category in a statement of
cash flows?
Cash from financing activities - ANS-Which cash flow category would include "cash
received from investors"?
Cash payments for purchase of plant assets - ANS-Which item is an investing
activity?
Increase in cash from investing activities - ANS-What impact does the sale of
equipment have on the statement of cash flows?
The indirect method is more popular among large U.S. companies - ANS-What is
known about the direct and indirect methods of preparing statements of cash flow?
The inventory department counts and inspects items as received and forwards the
receiving record to accounts payable. - ANS-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?
Pressure to meet internal sales goals &
Preparing to qualify for a bank loan - ANS-What are common reasons for managers
to manipulate reported earnings?
Firms must not provide certain non-audit services to audit clients, such as
management functions or legal services. &
Firms must report to and be retained by the audit committee rather than the CFO
, or other company management. - ANS-Which requirements must accounting firms
that audit public companies meet under the Sarbanes-Oxley Act?
They search for and investigate fraud.
&
They review financial records and internal controls. - ANS-Which actions do internal
auditors perform to assist in maintaining the integrity of financial statements?
They ensure that financial statement users are provided with reliable information to
use in decision making - ANS-What is a significant role of the U.S. Securities and
Exchange Commission (SEC) in financial reporting?
A better insight for management so a business can perform more effectively
&
A competitive edge to a business by providing its managers with the detailed data
needed to make decisions - ANS-What does management accounting provide?
Management accounting is used primarily for internal planning, control, and
evaluation. - ANS-How does management accounting differ from financial
accounting?
Inventory - ANS-Which account is seen on the balance sheet of a manufacturing
company but not on the balance sheet of a service-oriented company?
Differential cost - ANS-What is a cost that will change in the future based upon the
decision made?
Administrative expenses &
Selling expenses - ANS-Which are examples are period costs?
Salary cost of the receptionist
Advertising cost - ANS-A company manufactures custom-built wooden bookshelves.
Which two costs would the company classify as period costs?
Answer Choices: Wood cost, Salary cost of the craftsperson, Salary cost of the
receptionist, Advertising cost
To guide the resolution to possible ethical dilemmas that the managerial accountant
may encounter - ANS-What role do ethical standards have in management
accounting?
Direct labor costs
Overhead costs - ANS-Which two costs are included when calculating inventory
costs?
A company produces five different products. The products are highly differentiated
and have significantly different demands for their use of overhead costs. - ANS-In
which scenario would activity-based costing be more appropriate than traditional
Materials with Complete Solutions
The impact a business's activities have on its overall financial performance - ANS-
What does accounting focus on?
Statement of cash flows - ANS-Which report summarizes cash collections and cash
expenditures from operating, investing, and financing activities over a period of
time?
Employees - ANS-Which users would have a primary concern with an organization's
ability to provide healthcare benefits?
An increase in its compatibility to other companies - ANS-Which benefit does a
corporation gain by following Generally Accepted Accounting Principles (GAPP)?
The Public Company Accounting Oversight Board (PACOB) - ANS-Which body
regulates a certified public accounting firm's audit practices when the firm is
auditing a large publicly traded company?
Information technology - ANS-What has had the most significant impact on
Accounting practices?
Ownership and Debt - ANS-What two items of information are revealed on the
balance sheet?
Owners equity - ANS-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). - ANS-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 - ANS-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 - ANS-Where would an investor find a summary
of a company's significant accounting policies?
The company's financial statements fairly reflect its financial position - ANS-Which
assurance does an external audit report provide for its readers?
Reliable - ANS-Information that can be verified
,Relevant - ANS-Information having to do with the matter at hand
Material - ANS-Information that is important enough to make a difference
Conservatism - ANS-Information related to recognizing losses as they occur
Continual decrease in sales - ANS-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 - ANS-Which form of debt should
be reported in the long-term liability category?
Operating expenses &
Ordinary gains and losses - ANS-Which values affect the measurement of net
income?
Gross profit &
Income from operations - ANS-Which items' subtotals are included in a multi-step
income statement?
Cash from investing activities - ANS-What is a common category in a statement of
cash flows?
Cash from financing activities - ANS-Which cash flow category would include "cash
received from investors"?
Cash payments for purchase of plant assets - ANS-Which item is an investing
activity?
Increase in cash from investing activities - ANS-What impact does the sale of
equipment have on the statement of cash flows?
The indirect method is more popular among large U.S. companies - ANS-What is
known about the direct and indirect methods of preparing statements of cash flow?
The inventory department counts and inspects items as received and forwards the
receiving record to accounts payable. - ANS-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?
Pressure to meet internal sales goals &
Preparing to qualify for a bank loan - ANS-What are common reasons for managers
to manipulate reported earnings?
Firms must not provide certain non-audit services to audit clients, such as
management functions or legal services. &
Firms must report to and be retained by the audit committee rather than the CFO
, or other company management. - ANS-Which requirements must accounting firms
that audit public companies meet under the Sarbanes-Oxley Act?
They search for and investigate fraud.
&
They review financial records and internal controls. - ANS-Which actions do internal
auditors perform to assist in maintaining the integrity of financial statements?
They ensure that financial statement users are provided with reliable information to
use in decision making - ANS-What is a significant role of the U.S. Securities and
Exchange Commission (SEC) in financial reporting?
A better insight for management so a business can perform more effectively
&
A competitive edge to a business by providing its managers with the detailed data
needed to make decisions - ANS-What does management accounting provide?
Management accounting is used primarily for internal planning, control, and
evaluation. - ANS-How does management accounting differ from financial
accounting?
Inventory - ANS-Which account is seen on the balance sheet of a manufacturing
company but not on the balance sheet of a service-oriented company?
Differential cost - ANS-What is a cost that will change in the future based upon the
decision made?
Administrative expenses &
Selling expenses - ANS-Which are examples are period costs?
Salary cost of the receptionist
Advertising cost - ANS-A company manufactures custom-built wooden bookshelves.
Which two costs would the company classify as period costs?
Answer Choices: Wood cost, Salary cost of the craftsperson, Salary cost of the
receptionist, Advertising cost
To guide the resolution to possible ethical dilemmas that the managerial accountant
may encounter - ANS-What role do ethical standards have in management
accounting?
Direct labor costs
Overhead costs - ANS-Which two costs are included when calculating inventory
costs?
A company produces five different products. The products are highly differentiated
and have significantly different demands for their use of overhead costs. - ANS-In
which scenario would activity-based costing be more appropriate than traditional
