WGU C213 Pre-Assessment Accounting for Decision
Makers Exam 144 Questions with Verified Answers
The impact a business's activities have on its overall financial performance -
CORRECT ANSWER What does accounting focus on?
Statement of cash flows - CORRECT ANSWER Which report summarizes cash
collections and cash expenditures from operating, investing, and financing
activities over a period of time?
Employees - CORRECT ANSWER Which users would have a primary concern with
an organization's ability to provide healthcare benefits?
The Public Company Accounting Oversight Board (PCAOB) - CORRECT ANSWER
Which body regulates a certified public accounting firm's audit practices when the
firm is auditing a large publicly traded company?
Information technology - CORRECT ANSWER What has had the most significant
impact on accounting practices?
Ownership.
Debt - CORRECT ANSWER What two items of information are revealed on the
balance sheet?
Choose 2 answers
,Owners' equity - CORRECT ANSWER Which term is defined as the residual interest
in the net assets of a company?
$350 million
A= L+E
x $50 = $300 + $100
x = $300 + $100 - $ 50 = $350 - CORRECT 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?
In 2014, a company provides services to a customer for which cash will be
collected the next year (2015). - CORRECT 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-basis accounting?
Cash flows from financing activities - CORRECT 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 - CORRECT 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 - CORRECT
ANSWER Which assurance does an external audit report provide for its readers?
,Information that can be verified - CORRECT ANSWER Reliable
Information having to do with the matter at hand - CORRECT ANSWER Relevant
Information that is important enough to make a difference - CORRECT ANSWER
Material
Information related to recognizing losses as they occur - CORRECT ANSWER
Conservatism
1 Prepare financial statements.
2 Analyze financial statements.
3 Gather information.
4 Make decision.
5 Implement decision - CORRECT ANSWER steps in the decision cycle
11.0
PE ratio = Net Income/share value
$ 3,761 ÷ $41,316 = 10.99 - CORRECT ANSWER 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?
Continual decrease in sales - CORRECT ANSWER What is consistent with a
continual decline in gross profit if the firm's cost of goods sold remains the same?
$6,991/$5,486. $5,220/$1,875. - CORRECT ANSWER Which two cash flow
adequacy ratios represent a cash cow?
Cash before interest and taxes of $11,000 / cash paid for interest of $1,000 -
CORRECT ANSWER Which formula yields a cash times interest earned ratio of 11?
Notes payable expected to be paid in 18 months - CORRECT ANSWER Which form
of debt should be reported in the long-term liability category?
Equipment will increase $200,000, and cash will decrease $200,000. - CORRECT
ANSWER In January of year 1, a company began doing business as a corporation in
order to sell technology-related accessories and services. During its first month of
operations, the following events occurred:
January 1
The corporation received $1,000,000 in cash in exchange for stock issued to
stockholders.
Makers Exam 144 Questions with Verified Answers
The impact a business's activities have on its overall financial performance -
CORRECT ANSWER What does accounting focus on?
Statement of cash flows - CORRECT ANSWER Which report summarizes cash
collections and cash expenditures from operating, investing, and financing
activities over a period of time?
Employees - CORRECT ANSWER Which users would have a primary concern with
an organization's ability to provide healthcare benefits?
The Public Company Accounting Oversight Board (PCAOB) - CORRECT ANSWER
Which body regulates a certified public accounting firm's audit practices when the
firm is auditing a large publicly traded company?
Information technology - CORRECT ANSWER What has had the most significant
impact on accounting practices?
Ownership.
Debt - CORRECT ANSWER What two items of information are revealed on the
balance sheet?
Choose 2 answers
,Owners' equity - CORRECT ANSWER Which term is defined as the residual interest
in the net assets of a company?
$350 million
A= L+E
x $50 = $300 + $100
x = $300 + $100 - $ 50 = $350 - CORRECT 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?
In 2014, a company provides services to a customer for which cash will be
collected the next year (2015). - CORRECT 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-basis accounting?
Cash flows from financing activities - CORRECT 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 - CORRECT 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 - CORRECT
ANSWER Which assurance does an external audit report provide for its readers?
,Information that can be verified - CORRECT ANSWER Reliable
Information having to do with the matter at hand - CORRECT ANSWER Relevant
Information that is important enough to make a difference - CORRECT ANSWER
Material
Information related to recognizing losses as they occur - CORRECT ANSWER
Conservatism
1 Prepare financial statements.
2 Analyze financial statements.
3 Gather information.
4 Make decision.
5 Implement decision - CORRECT ANSWER steps in the decision cycle
11.0
PE ratio = Net Income/share value
$ 3,761 ÷ $41,316 = 10.99 - CORRECT ANSWER 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?
Continual decrease in sales - CORRECT ANSWER What is consistent with a
continual decline in gross profit if the firm's cost of goods sold remains the same?
$6,991/$5,486. $5,220/$1,875. - CORRECT ANSWER Which two cash flow
adequacy ratios represent a cash cow?
Cash before interest and taxes of $11,000 / cash paid for interest of $1,000 -
CORRECT ANSWER Which formula yields a cash times interest earned ratio of 11?
Notes payable expected to be paid in 18 months - CORRECT ANSWER Which form
of debt should be reported in the long-term liability category?
Equipment will increase $200,000, and cash will decrease $200,000. - CORRECT
ANSWER In January of year 1, a company began doing business as a corporation in
order to sell technology-related accessories and services. During its first month of
operations, the following events occurred:
January 1
The corporation received $1,000,000 in cash in exchange for stock issued to
stockholders.
