WGU C213 PRE ASSESSMENT ACTUAL
PAPER 2026 QUESTIONS WITH SOLUTIONS
GRADED A+
◉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 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 (PCAOB)
◉What has had the most significant impact on accounting practices?
Answer: Information technology
◉What two items of information are revealed on the balance sheet?
Choose 2 answers Answer: Ownership
,Debt
◉Which term is defined as the residual interest in the net assets of a
company? 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? 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? 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 flows 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
◉Reliable Answer: Information that can be verified
◉Relevant Answer: Information having to do with the matter at
hand
◉Material Answer: Information that is important enough to make a
difference
◉Conservatism Answer: Information related to recognizing losses
as they occur
◉What are steps in the decision cycle? Answer: 1 Prepare financial
statements.
2 Analyze financial statements.
3 Gather information.
4 Make decision.
5 Implement decision.
, ◉What does it mean if a company has a debt ratio of 101.5%?
Answer: The company has 1.5% more total liabilities than total
assets.
◉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? Answer:
11.0
◉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 two cash flow adequacy ratios represent a cash cow?
Answer: $6,991/$5,486. $5,220/$1,875.
PAPER 2026 QUESTIONS WITH SOLUTIONS
GRADED A+
◉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 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 (PCAOB)
◉What has had the most significant impact on accounting practices?
Answer: Information technology
◉What two items of information are revealed on the balance sheet?
Choose 2 answers Answer: Ownership
,Debt
◉Which term is defined as the residual interest in the net assets of a
company? 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? 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? 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 flows 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
◉Reliable Answer: Information that can be verified
◉Relevant Answer: Information having to do with the matter at
hand
◉Material Answer: Information that is important enough to make a
difference
◉Conservatism Answer: Information related to recognizing losses
as they occur
◉What are steps in the decision cycle? Answer: 1 Prepare financial
statements.
2 Analyze financial statements.
3 Gather information.
4 Make decision.
5 Implement decision.
, ◉What does it mean if a company has a debt ratio of 101.5%?
Answer: The company has 1.5% more total liabilities than total
assets.
◉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? Answer:
11.0
◉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 two cash flow adequacy ratios represent a cash cow?
Answer: $6,991/$5,486. $5,220/$1,875.
