WGU C213 PRE ASSESSMENT AND OBJECTIVE
ASSESSMENT EXAM 2026 | ACCURATE AND VERIFIED
QUESTIONS WITH DETAILED ANSWERS | LATEST UPDATE |
GUARANTEED PASS
The primary internal group that uses accounting information is? - CORRECT ANSWER
Management
Internal reports are generally used by? - CORRECT ANSWER Management
Which of the following is NOT an external user of financial information? - CORRECT
ANSWER Management
Which of the following is NOT true of the Financial Accounting Standards Board (FASB)? -
CORRECT ANSWER It is a government agency
Generally accepted accounting principles are? - CORRECT ANSWER Developed by
accounting rule makers
The current standard-setting board for accounting in the private sector is the? - CORRECT
ANSWER Financial Accounting Standards Board (FASB)
Which of the following organizations has specific legal authority to establish accounting
standards for publicly held companies? - CORRECT ANSWER Securities and Exchange
Commission (SEC)
Which of the following is NOT a service typically provided by large public accounting firms? -
CORRECT ANSWER Making management decisions
The initials CPA stand for? - CORRECT ANSWER Certified Public Accountant
,Standards established by the International Accounting Standards Board are referred to as? -
CORRECT ANSWER International Financial Accounting Standards
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
Increased federal oversight of the audit process resulted from the passage of the following act of
Congress? - CORRECT ANSWER Sarbanes-Oxley Act
What does it mean if a company has a debt ratio of 101.5%? - CORRECT ANSWER The
company has 1.5% more total liabilities than total assets.
What is consistent with a continual decline in gross profit if the firm's cost of goods sold remains
the same? - CORRECT ANSWER Continual decrease in sales
Which two cash flow adequacy ratios represent a cash cow? - CORRECT ANSWER
$6,991/$5,486 & $5,220/$1,875
What two items of information are revealed on the balance sheet? - CORRECT ANSWER
Ownership & Debt
Which term is defined as the residual interest in the net assets of a company? - CORRECT
ANSWER Owners' equity
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? - CORRECT
ANSWER $350 million
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? - CORRECT 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? - CORRECT ANSWER Cash flows from financing
activities
Cash flows from financing activities? - CORRECT ANSWER In the notes to financial
statements
Which assurance does an external audit report provide for its readers? - CORRECT ANSWER
The company's financial statements fairly reflect its financial position
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
Which form of debt should be reported in the long-term liability category? - CORRECT
ANSWER Notes payable expected to be paid in 18 months
What will be the impact of the January 5 event on the company's balance sheet on that date given
the following:
January 5 The corporation purchased equipment to be used in the business for $200,000 cash? -
CORRECT ANSWER Equipment will increase $200,000, and cash will decrease $200,000.
Which two values affect the measurement of net income? - CORRECT ANSWER Operating
expenses & Ordinary gains and losses
Which two items' subtotals are included in a multi-step income statement? - CORRECT
ANSWER Gross profit & Income from operations
, Given the following, which month should advertising costs be expensed by a company using
accrual based accounting: The furniture company paid $3,000 for advertising that ran in the local
newspaper in November 2011? - CORRECT ANSWER November 2011
What will be the total impact of services provided on the balance sheet other than an increase in
cash of $4,000 given the following:
Services were provided worth $10,000; customers paid $4,000 up front and promised the balance
next month? - CORRECT ANSWER Accounts receivable will increase $6,000 & Retained
earnings will increase $10,000
What was the 2012 net profit amount if the 2013 pro-forma net profit of $187,000 was based on
a 22% increase? - CORRECT ANSWER $153,279
What does accounting focus on? - CORRECT 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? - CORRECT ANSWER Statement of cash flows
Which users would have a primary concern with an organization's ability to provide healthcare
benefits? - CORRECT ANSWER Employees
Which benefit does a corporation gain by following Generally Accepted Accounting Principles
(GAAP) - CORRECT ANSWER An increase in its comparability to other companies
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
What is NOT typically true of accounting information? - CORRECT ANSWER The information
relates to future time periods.
Which is NOT a key component of the definition of accounting? - CORRECT ANSWER
Qualitative
ASSESSMENT EXAM 2026 | ACCURATE AND VERIFIED
QUESTIONS WITH DETAILED ANSWERS | LATEST UPDATE |
GUARANTEED PASS
The primary internal group that uses accounting information is? - CORRECT ANSWER
Management
Internal reports are generally used by? - CORRECT ANSWER Management
Which of the following is NOT an external user of financial information? - CORRECT
ANSWER Management
Which of the following is NOT true of the Financial Accounting Standards Board (FASB)? -
CORRECT ANSWER It is a government agency
Generally accepted accounting principles are? - CORRECT ANSWER Developed by
accounting rule makers
The current standard-setting board for accounting in the private sector is the? - CORRECT
ANSWER Financial Accounting Standards Board (FASB)
Which of the following organizations has specific legal authority to establish accounting
standards for publicly held companies? - CORRECT ANSWER Securities and Exchange
Commission (SEC)
Which of the following is NOT a service typically provided by large public accounting firms? -
CORRECT ANSWER Making management decisions
The initials CPA stand for? - CORRECT ANSWER Certified Public Accountant
,Standards established by the International Accounting Standards Board are referred to as? -
CORRECT ANSWER International Financial Accounting Standards
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
Increased federal oversight of the audit process resulted from the passage of the following act of
Congress? - CORRECT ANSWER Sarbanes-Oxley Act
What does it mean if a company has a debt ratio of 101.5%? - CORRECT ANSWER The
company has 1.5% more total liabilities than total assets.
What is consistent with a continual decline in gross profit if the firm's cost of goods sold remains
the same? - CORRECT ANSWER Continual decrease in sales
Which two cash flow adequacy ratios represent a cash cow? - CORRECT ANSWER
$6,991/$5,486 & $5,220/$1,875
What two items of information are revealed on the balance sheet? - CORRECT ANSWER
Ownership & Debt
Which term is defined as the residual interest in the net assets of a company? - CORRECT
ANSWER Owners' equity
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? - CORRECT
ANSWER $350 million
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? - CORRECT 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? - CORRECT ANSWER Cash flows from financing
activities
Cash flows from financing activities? - CORRECT ANSWER In the notes to financial
statements
Which assurance does an external audit report provide for its readers? - CORRECT ANSWER
The company's financial statements fairly reflect its financial position
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
Which form of debt should be reported in the long-term liability category? - CORRECT
ANSWER Notes payable expected to be paid in 18 months
What will be the impact of the January 5 event on the company's balance sheet on that date given
the following:
January 5 The corporation purchased equipment to be used in the business for $200,000 cash? -
CORRECT ANSWER Equipment will increase $200,000, and cash will decrease $200,000.
Which two values affect the measurement of net income? - CORRECT ANSWER Operating
expenses & Ordinary gains and losses
Which two items' subtotals are included in a multi-step income statement? - CORRECT
ANSWER Gross profit & Income from operations
, Given the following, which month should advertising costs be expensed by a company using
accrual based accounting: The furniture company paid $3,000 for advertising that ran in the local
newspaper in November 2011? - CORRECT ANSWER November 2011
What will be the total impact of services provided on the balance sheet other than an increase in
cash of $4,000 given the following:
Services were provided worth $10,000; customers paid $4,000 up front and promised the balance
next month? - CORRECT ANSWER Accounts receivable will increase $6,000 & Retained
earnings will increase $10,000
What was the 2012 net profit amount if the 2013 pro-forma net profit of $187,000 was based on
a 22% increase? - CORRECT ANSWER $153,279
What does accounting focus on? - CORRECT 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? - CORRECT ANSWER Statement of cash flows
Which users would have a primary concern with an organization's ability to provide healthcare
benefits? - CORRECT ANSWER Employees
Which benefit does a corporation gain by following Generally Accepted Accounting Principles
(GAAP) - CORRECT ANSWER An increase in its comparability to other companies
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
What is NOT typically true of accounting information? - CORRECT ANSWER The information
relates to future time periods.
Which is NOT a key component of the definition of accounting? - CORRECT ANSWER
Qualitative
