C213 / C213 Accounting for Decision Makers 2025 PA & OA Exam Study Guide | WGU

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PA & OA Exam Study Guide - C213 / C 213 (Latest

2025) : Accounting for Decision Makers - W.G.U

What does accounting focus on? .....ANSWER.....The impact a

business's activities have on its overall financial performance

Which report summarizes cash collections and cash expenditures

from operating, investing, and financing activities over a period

of time? .....ANSWER.....Statement of cash flows

Which users would have a primary concern with an

organization's ability to provide healthcare benefits?

.....ANSWER.....Employees

Which benefit does a corporation gain by following Generally

Accepted Accounting Principles (GAPP)? .....ANSWER.....An

increase in its compatibility to other companies

Which body regulates a certified public accounting firm's audit

practices when the firm is auditing a large publicly traded

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company? .....ANSWER.....The Public Company Accounting

Oversight Board (PACOB)

What has had the most significant impact on Accounting

practices? .....ANSWER.....Information technology

What two items of information are revealed on the balance

sheet? .....ANSWER.....Ownership and Debt

Which term is defined as the residual in the net assets of a

company? .....ANSWER.....Owners equity

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? .....ANSWER.....In 2014, a company provides

services to a customer for which cash will be collected the next

year (2015).

Which category on the statement of cash flows summarizes cash

receipts and payments to owners and creditors of the company?

.....ANSWER.....Cash from financing activities

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Where would an investor find a summary of a company's

significant accounting policies? .....ANSWER.....In the notes to

financial statements

Which assurance does an external audit report provide for its

readers? .....ANSWER.....The company's financial statements fairly

reflect its financial position

Information that can be verified .....ANSWER.....Reliable

Information having to do with the matter at hand

.....ANSWER.....Relevant

Information that is important enough to make a difference

.....ANSWER.....Material

Information related to recognizing losses as they occur

.....ANSWER.....Conservatism

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What is consistent with a continual decline in gross profit if the

firm's cost of goods sold remains the same?

.....ANSWER.....Continual decrease in sales

Which form of debt should be reported in the long-term liability

category? .....ANSWER.....Notes payable expected to be paid in

18 months

Which values affect the measurement of net income?

.....ANSWER.....Operating expenses &

Ordinary gains and losses

Which items' subtotals are included in a multi-step income

statement? .....ANSWER.....Gross profit &

Income from operations

What is a common category in a statement of cash flows?

.....ANSWER.....Cash from investing activities