WGU C213 PA & OA Study Guide
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?
\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 costing?
\A decrease in dividends payable - ANS - Which of the following would be
subtracted from net income on a statement of cash flows prepared with the
indirect method?
\A decrease in net assets - ANS - Expenses generally cause
\A period cost - ANS - A non-manufacturing cost is classified as
\A system of providing quantitative information, primarily financial in nature,
about economic entities that is intended to be useful in making economic
decisions - ANS - Which is the most correct definition of accounting?
\Accountants must audit all 10-Q reports - ANS - Which of the following is NOT
one of the effects that the Securities and Exchange Act of 1934 had on
Accountants?
\accounts payable - ANS - If a company anticipates a 40% increase in sales
volume, than it is most likely that the company will need a 40% increase in
\Accounts payable - ANS - Which of the following accounts is NOT an asset
account?
\Accounts receivable turnover - ANS - Which ratio represents how many times
during the year a company is collecting it's receivables?
\Administrative costs - ANS - Which of the following types of costs are most likely
to be classified as period costs?
\Administrative expenses &
Selling expenses - ANS - Which are examples are period costs?
\Advertising - ANS - Which of the following would NOT usually be considered a
product cost of a manufacturing company?
\Amounts borrowed - ANS - Which of the following would NOT be reported as an
investing activity on the statement of cash flows?
, \An exchange transaction involving goods and services has occurred and the
earnings process is essentially complete - ANS - The revenue principal states that
revenue should be recognized at a point when
\An increase in its compatibility to other companies - ANS - Which benefit does a
corporation gain by following Generally Accepted Accounting Principles (GAPP)?
\Analytical procedures - ANS - Which of the following audit processes attempts to
identify areas that may deserve attention by using techniques such as
comparative ratio analysis?
\Analyzing results - ANS - Control operations does NOT involve
\Analyzing results - ANS - The control of operations involves all of the following
procedures EXCEPT:
\Articulation - ANS - The idea that certain figures on a operating statement help
explain changes in figures on comparative balance sheets is referred to as
\Audit committee - ANS - According to Sarbanes-Oxley who are auditors required
to report to and be retained by?
\Auditing system - ANS - Which of the following is NOT one of the five basic
categories of internal control?
\Balance Sheet - ANS - The financial statement that reports resources owned, the
obligations to transfer resources to other organizations, and the claims by the
entity's owners is known as the
\Balance sheet - ANS - Which of the following financial statements provides a
picture of the enterprise at a particular point in time?
\Balance sheet - ANS - Which of the following financial statements reports a
company's resources, obligations, and owners equity
\Batch-level activities - ANS - Which category of ABC activities are machine setup
and material movement costs associated with?
\Borrowing - ANS - Which of the following classifications does NOT appear on the
Statement of Cash Flows?
\Both diagnosis and prognosis - ANS - Which of the following is one of the
purposes of financial statement analysis
\Both liabilities and owners equity - ANS - Which of the following types of
accounts show how resources came into a firm?
\Both past values and values for other firms in the same industry - ANS -
Financial statement analysis is greatly enhanced when financial ratios are
compared with
\Both unusual and infrequent - ANS - For a gain or loss to be classified as
extraordinary, it must be
\Cash - ANS - Which of the following accounts is considered to be the most
liquid?
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?
\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 costing?
\A decrease in dividends payable - ANS - Which of the following would be
subtracted from net income on a statement of cash flows prepared with the
indirect method?
\A decrease in net assets - ANS - Expenses generally cause
\A period cost - ANS - A non-manufacturing cost is classified as
\A system of providing quantitative information, primarily financial in nature,
about economic entities that is intended to be useful in making economic
decisions - ANS - Which is the most correct definition of accounting?
\Accountants must audit all 10-Q reports - ANS - Which of the following is NOT
one of the effects that the Securities and Exchange Act of 1934 had on
Accountants?
\accounts payable - ANS - If a company anticipates a 40% increase in sales
volume, than it is most likely that the company will need a 40% increase in
\Accounts payable - ANS - Which of the following accounts is NOT an asset
account?
\Accounts receivable turnover - ANS - Which ratio represents how many times
during the year a company is collecting it's receivables?
\Administrative costs - ANS - Which of the following types of costs are most likely
to be classified as period costs?
\Administrative expenses &
Selling expenses - ANS - Which are examples are period costs?
\Advertising - ANS - Which of the following would NOT usually be considered a
product cost of a manufacturing company?
\Amounts borrowed - ANS - Which of the following would NOT be reported as an
investing activity on the statement of cash flows?
, \An exchange transaction involving goods and services has occurred and the
earnings process is essentially complete - ANS - The revenue principal states that
revenue should be recognized at a point when
\An increase in its compatibility to other companies - ANS - Which benefit does a
corporation gain by following Generally Accepted Accounting Principles (GAPP)?
\Analytical procedures - ANS - Which of the following audit processes attempts to
identify areas that may deserve attention by using techniques such as
comparative ratio analysis?
\Analyzing results - ANS - Control operations does NOT involve
\Analyzing results - ANS - The control of operations involves all of the following
procedures EXCEPT:
\Articulation - ANS - The idea that certain figures on a operating statement help
explain changes in figures on comparative balance sheets is referred to as
\Audit committee - ANS - According to Sarbanes-Oxley who are auditors required
to report to and be retained by?
\Auditing system - ANS - Which of the following is NOT one of the five basic
categories of internal control?
\Balance Sheet - ANS - The financial statement that reports resources owned, the
obligations to transfer resources to other organizations, and the claims by the
entity's owners is known as the
\Balance sheet - ANS - Which of the following financial statements provides a
picture of the enterprise at a particular point in time?
\Balance sheet - ANS - Which of the following financial statements reports a
company's resources, obligations, and owners equity
\Batch-level activities - ANS - Which category of ABC activities are machine setup
and material movement costs associated with?
\Borrowing - ANS - Which of the following classifications does NOT appear on the
Statement of Cash Flows?
\Both diagnosis and prognosis - ANS - Which of the following is one of the
purposes of financial statement analysis
\Both liabilities and owners equity - ANS - Which of the following types of
accounts show how resources came into a firm?
\Both past values and values for other firms in the same industry - ANS -
Financial statement analysis is greatly enhanced when financial ratios are
compared with
\Both unusual and infrequent - ANS - For a gain or loss to be classified as
extraordinary, it must be
\Cash - ANS - Which of the following accounts is considered to be the most
liquid?
