WGU C213 PA & OA Study Guide 2024 with Complete Solutions

WGU C213 PA & OA Study Guide 2024 with Complete Solutions 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 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 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 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 Which cash flow category would include "cash received from investors"? - Answer- Cash from financing activitie