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WGU C213 - Accounting for MBA's
Exam with complete solutions latest
version
1.1 Which of the following is NOT a key component of the definition of
accounting? - CORRECT ANSWER-Qualitative
1.1 Which of the following is NOT a function of accounting - CORRECT ANSWER-
Executing sales transactions for organizations
1.1 Which of the following is the most correct definition of accounting? -
CORRECT ANSWER-A system for providing quantitative information, primarily
financial in nature, about economic entities that is intended to be useful in
making economic decisions.
1.1 Businesses use accounting systems to - CORRECT ANSWER-Analyze
transactions
Handle routine bookkeeping tasks
Evaluate the performance and health of the business
**All of these are correct
1.1 Which of the following is NOT typically true of accounting information? -
CORRECT ANSWER-The information relates to future time periods.
1.2 Which of the following is NOT one of the three primary financial statements? -
CORRECT ANSWER-Statement of retained earnings
1.2 Which of the following financial statements reports a company's resources,
obligations, and owner's equity? - CORRECT ANSWER-Balance sheet
1.2 Which of the following financial statements reports the excess of a company's
revenues over its expenses? - CORRECT ANSWER-Income statement
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1.2 Which of the following financial statements reports the amount of cash
collected and paid out by a company? - CORRECT ANSWER-Statement of cash
flows
1.3 The emphasis in financial accounting is on which of the following external
user groups? - CORRECT ANSWER-Investors and creditors
1.3 The primary internal group that uses accounting information is - CORRECT
ANSWER-Management
1.3 Internal reports are generally used by - CORRECT ANSWER-Management
1.3 Which of the following is NOT an external user of financial information -
CORRECT ANSWER-Management
1.4 Which of the following is NOT true of the Financial Accounting Standards
Board (FASB)? - CORRECT ANSWER-It is a government agency
1.4 Generally accepted accounting principles are - CORRECT ANSWER-
Developed by accounting rule makers
1.4 The initials GAAP stand for - CORRECT ANSWER-Generally Accepted
Accounting Principles
1.4 The current standard-setting board for accounting in the private sector is the -
CORRECT ANSWER-Financial Accounting Standards Board (FASB)
1.5 Which of the following organizations has specific legal authority to establish
accounting standards for publicly held companies? - CORRECT ANSWER-
Securities and Exchange Commission (SEC)
1.5 The organization that develops worldwide accounting standards is the -
CORRECT ANSWER-International Accounting Standards Board (IASB)
1.5 The initials CPA stand for - CORRECT ANSWER-Certified Public Accountant
1.5 Which of the following is NOT a service typically provided by large public
accounting firms? - CORRECT ANSWER-Making management decisions
1.5 Which of the following is the government agency that stipulates the rules and
regulations that govern the collection of taxes in the United States? - CORRECT
ANSWER-Internal Revenue Service
1.6 Which of the following is NOT a reason for the integration of worldwide
accounting standards? - CORRECT ANSWER-the theoretical necessity of a
common set of accounting standards
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1.6 The International Accounting Standards Board (IASB) is charged with
developing worldwide accounting practices - CORRECT ANSWER-True
1.6 With the current state of information technology, investors outside a company
are now allowed access to a company's internal database of financial information
and do their own customized analysis of a firm's performance. - CORRECT
ANSWER-False
While the technology may be available, companies are still not allowing outsiders
access to their internal accounting records.
1.6 Increased federal oversight of the audit process resulted from the passage of
the following act of Congress - - CORRECT ANSWER-Sarbanes-Oxley Act
2.1 A borrower benefits from providing financial information regarding income
and expenses in the form of a lower interest rate on the loan because of reduced
uncertainty for the lender with regard to repayment - CORRECT ANSWER-True
2.1 Which of the following is NOT one of the three primary financial statements? -
CORRECT ANSWER-The Statement of Retained Earnings
2.1 One reason for a company's preparing and providing financial statements is
to reduce uncertainty for an investor regarding the firm's future financial
performance. - CORRECT ANSWER-true
2.2 Which of the following types of accounts are NOT found on the balance
sheet? - CORRECT ANSWER-Revenues
2.2 Markanich Company purchased land for $90,000 in 2010.
In 2013, the land is valued at $115,000.
The land would appear on the company's books in 2013 at - CORRECT ANSWER-
$90,000
2.2 Which of the following would be considered a long-term liability? - CORRECT
ANSWER-Mortgage payable
2.2 Which of the following accounts is considered to be the most liquid? -
CORRECT ANSWER-Cash
2.2 The basic accounting equation is - CORRECT ANSWER-Assets = Liabilities +
Owners' Equity
2.3 Which of the following would be included on an income statement? -
CORRECT ANSWER-Rent expense
2.3 Resource increases from the sale of goods or services are called - CORRECT
ANSWER-Revenues
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2.3 Revenues cause - CORRECT ANSWER-An increase in net assets
2.3 Expenses generally cause - CORRECT ANSWER-A decrease in net assets
2.3 Expense and revenue accounts appear on the - CORRECT ANSWER-Income
statement
2.4 A major source of cash from operating activities is - CORRECT ANSWER-
Receipts from sale of goods
2.4 Which of the following is a primary use of cash? - CORRECT ANSWER-
Operating expenses
2.4 Which of the following classifications refers to those activities associated
with buying and selling long-term assets? - CORRECT ANSWER-Investing
2.4 During the month, Meridian Company had the following cash transactions:
Cash collected from customers
$ 12,500
Cash received from a loan
8,000
Cash paid for wages payable
(5,750)
Cash paid for the purchase of a building
(15,000)
Cash received for the issuance of new shares of stock
2,600
Cash received from sale of land
6,400
Cash paid for rent
(2,500)
Cash paid for dividends
BRAINSCAPE1
WGU C213 - Accounting for MBA's
Exam with complete solutions latest
version
1.1 Which of the following is NOT a key component of the definition of
accounting? - CORRECT ANSWER-Qualitative
1.1 Which of the following is NOT a function of accounting - CORRECT ANSWER-
Executing sales transactions for organizations
1.1 Which of the following is the most correct definition of accounting? -
CORRECT ANSWER-A system for providing quantitative information, primarily
financial in nature, about economic entities that is intended to be useful in
making economic decisions.
1.1 Businesses use accounting systems to - CORRECT ANSWER-Analyze
transactions
Handle routine bookkeeping tasks
Evaluate the performance and health of the business
**All of these are correct
1.1 Which of the following is NOT typically true of accounting information? -
CORRECT ANSWER-The information relates to future time periods.
1.2 Which of the following is NOT one of the three primary financial statements? -
CORRECT ANSWER-Statement of retained earnings
1.2 Which of the following financial statements reports a company's resources,
obligations, and owner's equity? - CORRECT ANSWER-Balance sheet
1.2 Which of the following financial statements reports the excess of a company's
revenues over its expenses? - CORRECT ANSWER-Income statement
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1.2 Which of the following financial statements reports the amount of cash
collected and paid out by a company? - CORRECT ANSWER-Statement of cash
flows
1.3 The emphasis in financial accounting is on which of the following external
user groups? - CORRECT ANSWER-Investors and creditors
1.3 The primary internal group that uses accounting information is - CORRECT
ANSWER-Management
1.3 Internal reports are generally used by - CORRECT ANSWER-Management
1.3 Which of the following is NOT an external user of financial information -
CORRECT ANSWER-Management
1.4 Which of the following is NOT true of the Financial Accounting Standards
Board (FASB)? - CORRECT ANSWER-It is a government agency
1.4 Generally accepted accounting principles are - CORRECT ANSWER-
Developed by accounting rule makers
1.4 The initials GAAP stand for - CORRECT ANSWER-Generally Accepted
Accounting Principles
1.4 The current standard-setting board for accounting in the private sector is the -
CORRECT ANSWER-Financial Accounting Standards Board (FASB)
1.5 Which of the following organizations has specific legal authority to establish
accounting standards for publicly held companies? - CORRECT ANSWER-
Securities and Exchange Commission (SEC)
1.5 The organization that develops worldwide accounting standards is the -
CORRECT ANSWER-International Accounting Standards Board (IASB)
1.5 The initials CPA stand for - CORRECT ANSWER-Certified Public Accountant
1.5 Which of the following is NOT a service typically provided by large public
accounting firms? - CORRECT ANSWER-Making management decisions
1.5 Which of the following is the government agency that stipulates the rules and
regulations that govern the collection of taxes in the United States? - CORRECT
ANSWER-Internal Revenue Service
1.6 Which of the following is NOT a reason for the integration of worldwide
accounting standards? - CORRECT ANSWER-the theoretical necessity of a
common set of accounting standards
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, BRAINSCAPE1
1.6 The International Accounting Standards Board (IASB) is charged with
developing worldwide accounting practices - CORRECT ANSWER-True
1.6 With the current state of information technology, investors outside a company
are now allowed access to a company's internal database of financial information
and do their own customized analysis of a firm's performance. - CORRECT
ANSWER-False
While the technology may be available, companies are still not allowing outsiders
access to their internal accounting records.
1.6 Increased federal oversight of the audit process resulted from the passage of
the following act of Congress - - CORRECT ANSWER-Sarbanes-Oxley Act
2.1 A borrower benefits from providing financial information regarding income
and expenses in the form of a lower interest rate on the loan because of reduced
uncertainty for the lender with regard to repayment - CORRECT ANSWER-True
2.1 Which of the following is NOT one of the three primary financial statements? -
CORRECT ANSWER-The Statement of Retained Earnings
2.1 One reason for a company's preparing and providing financial statements is
to reduce uncertainty for an investor regarding the firm's future financial
performance. - CORRECT ANSWER-true
2.2 Which of the following types of accounts are NOT found on the balance
sheet? - CORRECT ANSWER-Revenues
2.2 Markanich Company purchased land for $90,000 in 2010.
In 2013, the land is valued at $115,000.
The land would appear on the company's books in 2013 at - CORRECT ANSWER-
$90,000
2.2 Which of the following would be considered a long-term liability? - CORRECT
ANSWER-Mortgage payable
2.2 Which of the following accounts is considered to be the most liquid? -
CORRECT ANSWER-Cash
2.2 The basic accounting equation is - CORRECT ANSWER-Assets = Liabilities +
Owners' Equity
2.3 Which of the following would be included on an income statement? -
CORRECT ANSWER-Rent expense
2.3 Resource increases from the sale of goods or services are called - CORRECT
ANSWER-Revenues
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, BRAINSCAPE1
2.3 Revenues cause - CORRECT ANSWER-An increase in net assets
2.3 Expenses generally cause - CORRECT ANSWER-A decrease in net assets
2.3 Expense and revenue accounts appear on the - CORRECT ANSWER-Income
statement
2.4 A major source of cash from operating activities is - CORRECT ANSWER-
Receipts from sale of goods
2.4 Which of the following is a primary use of cash? - CORRECT ANSWER-
Operating expenses
2.4 Which of the following classifications refers to those activities associated
with buying and selling long-term assets? - CORRECT ANSWER-Investing
2.4 During the month, Meridian Company had the following cash transactions:
Cash collected from customers
$ 12,500
Cash received from a loan
8,000
Cash paid for wages payable
(5,750)
Cash paid for the purchase of a building
(15,000)
Cash received for the issuance of new shares of stock
2,600
Cash received from sale of land
6,400
Cash paid for rent
(2,500)
Cash paid for dividends
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