WGU C213: ACCOUNTING FOR DECISION MAKERS: PRE-ASSESSMENT Questions & Answers (2022/2023) Verified

WGU C213: ACCOUNTING FOR DECISION MAKERS: PRE-ASSESSMENT Questions & Answers (2022/2023) Verified PRE-ASSESSMENT: ACCOUNTING FOR DECISION MAKERS PVAC Attempt #2 Status: Passed 1. What does accounting focus on? Which report summarizes cash collections and cash expenditures from operating, investing, and financing activities over a period of time? YOUR ANSWER CORRECT ANSWER Cash receipts and disbursements sheet Cash flow schedule Summary of cash receipts Statement of cash flows 3. Which users would have a primary concern with an organization’s ability to provide healthcare benefits? Which benefit does a corporation gain by following Generally Accepted Accounting Principles (GAAP)? YOUR CORRECT ANSWER ANSWER Which body regulates a certified public accounting firm’s audit practices when the firm is auditing a large publicly traded company? YOUR ANSWER CORRECT ANSWER The Public Company Accounting Oversight Board (PCAOB) The Financial Accounting Standards Board (FASB) Another certified public accounting (CPA) firm The Internal Revenue Service (IRS) 6. What has had the most significant impact on accounting practices? Choose 2 answers Which term is defined as the residual interest in the net assets of a company? YOUR CORRECT ANSWER ANSWER 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? Which situation should result in revenue recognition on the income statement for the year ending 12/31/14 if the firm is using accrualbasis accounting? Which category on the statement of cash flows summarizes cash receipts and payments to owners and creditors of the company? Where would an investor find a summary of a company’s significant accounting policies? YOUR ANSWER CORRECT ANSWER In the balance sheet In the income statement In the statement of cash flows In the notes to financial statements 13. Which assurance does an external audit report provide for its readers? Answer options may be used more than once or not at all. YOUR ANSWER CORRECT ANSWER Reliable Information that can be verified Information that can be verified Relevant Information having to do with the matter at hand Information having to do with the matter at hand Material Information that is important enough to make a difference Information that is important enough to make a difference Conservatism Information related to recognizing losses as they occur Information related to recognizing losses as they occur 15. Order the steps in the decision cycle from first (1) to last (5). Select your answers from the pull-down list. YOUR ANSWER CORRECT ANSWER 1 Prepare financial statements Prepare financial statements 2 Analyze financial statements Analyze financial statements 3 Gather information Gather information YOUR ANSWER CORRECT ANSWER 4 Make decision Make decision 5 Implement decision Implement decision 16. Partial financial information for a company is as follows: Current assets $36,543 Total assets $58,719 Current liabilities $24,824 Total liabilities $48,561 Stockholders' equity $10,158 Sales $46,997 Net Income $ 3,761 Market value of shares$41,316 What is the price-earnings (PE) ratio for this company? What is consistent with a continual decline in gross profit if the firm's cost of goods sold remains the same? 19.