WGU C213 PRE-ASSESSMENT
(ACCOUNTING) 2026 QUESTIONS &
ACCURATE COMPLETE SOLUTIONS
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
(ACCOUNTING) 2026 QUESTIONS &
ACCURATE COMPLETE SOLUTIONS
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
