WGU C213 Pre-assessment (Accounting)
2025 questions and answers 2025\2026 A+
Grade
What does accounting focus on?
- The impact a business's activities have on its relationships with customers
- The impact a business's activities have on the environment.
- The impact a business's activities have on its public image.
- The impact a business's activities have on its overall financial performance.
- correct answer The impact a business's activities on its overall financial performance.
Which report summarizes cash collections and cash expenditures from operating, investing, and
financing activities over a period of time?
- Cash receipts and disbursements sheet
- Cash flow schedule
- Summary of cash receipts
- Statement of cash flows
- correct answer Statement of cash flows
Which users would have a primary concern with an organization's ability to provide healthcare benefits?
- Competitors
- Employees
- Vendors
- Suppliers
- correct answer Employees
Which benefit does a corporation gain by following Generally Accepted Accounting Principles (GAAP)?
,- A decrease in its income tax obligations
- A decrease in the amount of net income it reports
- An increase in its comparability to other companies
- An increase in the amount of assets it reports
- correct answer An increase in its comparability to other companies.
Which body regulates a certified public accounting firm's audit practices when the firm is auditing a
large publicly traded company?
- The Public Company Accounting Oversight Board (PCAOB)
- The Financial Accounting Standards Board (FASB)
- Another certified public accounting firm (CPA)
- The Internal Revenue Service (IRS)
- correct answer The Public Company Accounting Oversight Board (PCAOB)
What has had the most significant impact on accounting practices?
- correct answer Information technology
What two items of information are revealed on the balance sheet?
- correct answer Ownership and Debt
Which term is defined as the residual interest in the net assets of a company?
- correct answer Owners' equity
A corporation has a 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. Combine the liabilities with assets.
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
Where would an investor find a summary of a company's significant accounting policies?
- correct answer In the notes to financial statements
Which assurance does an external audit report provide for its readers?
- The company will be a good credit risk
- The company will generate net income.
- The company's financial statements fairly reflect its financial position.
- The company will generate positive cash flows
- correct answer The company's financial statements fairly reflect its financial position
Order the steps in the decision cycle from first to last: Gather information, prepare financial statements,
analyze financial statements, make decision, and implement decision.
- correct answer Prepare financial statements, analyze financial statements, gather information, make
decision, and implement decision
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?
- correct answer 11.0 Market value of shares/net income
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.
2025 questions and answers 2025\2026 A+
Grade
What does accounting focus on?
- The impact a business's activities have on its relationships with customers
- The impact a business's activities have on the environment.
- The impact a business's activities have on its public image.
- The impact a business's activities have on its overall financial performance.
- correct answer The impact a business's activities on its overall financial performance.
Which report summarizes cash collections and cash expenditures from operating, investing, and
financing activities over a period of time?
- Cash receipts and disbursements sheet
- Cash flow schedule
- Summary of cash receipts
- Statement of cash flows
- correct answer Statement of cash flows
Which users would have a primary concern with an organization's ability to provide healthcare benefits?
- Competitors
- Employees
- Vendors
- Suppliers
- correct answer Employees
Which benefit does a corporation gain by following Generally Accepted Accounting Principles (GAAP)?
,- A decrease in its income tax obligations
- A decrease in the amount of net income it reports
- An increase in its comparability to other companies
- An increase in the amount of assets it reports
- correct answer An increase in its comparability to other companies.
Which body regulates a certified public accounting firm's audit practices when the firm is auditing a
large publicly traded company?
- The Public Company Accounting Oversight Board (PCAOB)
- The Financial Accounting Standards Board (FASB)
- Another certified public accounting firm (CPA)
- The Internal Revenue Service (IRS)
- correct answer The Public Company Accounting Oversight Board (PCAOB)
What has had the most significant impact on accounting practices?
- correct answer Information technology
What two items of information are revealed on the balance sheet?
- correct answer Ownership and Debt
Which term is defined as the residual interest in the net assets of a company?
- correct answer Owners' equity
A corporation has a 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. Combine the liabilities with assets.
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
Where would an investor find a summary of a company's significant accounting policies?
- correct answer In the notes to financial statements
Which assurance does an external audit report provide for its readers?
- The company will be a good credit risk
- The company will generate net income.
- The company's financial statements fairly reflect its financial position.
- The company will generate positive cash flows
- correct answer The company's financial statements fairly reflect its financial position
Order the steps in the decision cycle from first to last: Gather information, prepare financial statements,
analyze financial statements, make decision, and implement decision.
- correct answer Prepare financial statements, analyze financial statements, gather information, make
decision, and implement decision
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?
- correct answer 11.0 Market value of shares/net income
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.
