1|Page
WGU C213 PRE -ASSESSMENT EXAM NEWEST 2026
ACTUAL EXAM| COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) ALREADY GRADED A+
The impact a business's activities have on its overall financial
performance ......ANSWER......What does accounting focus on?
Statement of cash flows ......ANSWER......Which report summarizes
cash collections and cash expenditures from operating, investing, and
financing activities over a period of time?
Employees ......ANSWER......Which users would have a primary concern
with an organization's ability to provide healthcare benefits?
An increase in its compatibility to other companies
......ANSWER......Which benefit does a corporation gain by following
Generally Accepted Accounting Principles (GAPP)?
The Public Company Accounting Oversight Board (PACOB)
......ANSWER......Which body regulates a certified public accounting
firm's audit practices when the firm is auditing a large publicly traded
company?
pg. 1
,2|Page
Information technology ......ANSWER......What has had the most
significant impact on Accounting practices?
Ownership and Debt ......ANSWER......What two items of information
are revealed on the balance sheet?
Owners equity ......ANSWER......Which term is defined as the residual in
the net assets of a company?
In 2014, a company provides services to a customer for which cash will
be collected the next year (2015). ......ANSWER......Which situation
should result in revenue recognition on the income statement for the
year ending 12/31/14 if the firm is using accrual accounting?
Cash from financing activities ......ANSWER......Which category on the
statement of cash flows summarizes cash receipts and payments to
owners and creditors of the company?
In the notes to financial statements ......ANSWER......Where would an
investor find a summary of a company's significant accounting
policies?
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,3|Page
The company's financial statements fairly reflect its financial position
......ANSWER......Which assurance does an external audit report
provide for its readers?
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
Continual decrease in sales ......ANSWER......What is consistent with a
continual decline in gross profit if the firm's cost of goods sold remains
the same?
Notes payable expected to be paid in 18 months ......ANSWER......Which
form of debt should be reported in the long-term liability category?
Operating expenses &
Ordinary gains and losses ......ANSWER......Which values affect the
measurement of net income?
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, 4|Page
Gross profit &
Income from operations ......ANSWER......Which items' subtotals are
included in a multi-step income statement?
Cash from investing activities ......ANSWER......What is a common
category in a statement of cash flows?
Cash from financing activities ......ANSWER......Which cash flow
category would include "cash received from investors"?
Cash payments for purchase of plant assets ......ANSWER......Which item
is an investing activity?
Increase in cash from investing activities ......ANSWER......What impact
does the sale of equipment have on the statement of cash flows?
The indirect method is more popular among large U.S. companies
......ANSWER......What is known about the direct and indirect methods
of preparing statements of cash flow?
The inventory department counts and inspects items as received and
forwards the receiving record to accounts payable.
......ANSWER......Which internal control is intended to ensure that a
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WGU C213 PRE -ASSESSMENT EXAM NEWEST 2026
ACTUAL EXAM| COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) ALREADY GRADED A+
The impact a business's activities have on its overall financial
performance ......ANSWER......What does accounting focus on?
Statement of cash flows ......ANSWER......Which report summarizes
cash collections and cash expenditures from operating, investing, and
financing activities over a period of time?
Employees ......ANSWER......Which users would have a primary concern
with an organization's ability to provide healthcare benefits?
An increase in its compatibility to other companies
......ANSWER......Which benefit does a corporation gain by following
Generally Accepted Accounting Principles (GAPP)?
The Public Company Accounting Oversight Board (PACOB)
......ANSWER......Which body regulates a certified public accounting
firm's audit practices when the firm is auditing a large publicly traded
company?
pg. 1
,2|Page
Information technology ......ANSWER......What has had the most
significant impact on Accounting practices?
Ownership and Debt ......ANSWER......What two items of information
are revealed on the balance sheet?
Owners equity ......ANSWER......Which term is defined as the residual in
the net assets of a company?
In 2014, a company provides services to a customer for which cash will
be collected the next year (2015). ......ANSWER......Which situation
should result in revenue recognition on the income statement for the
year ending 12/31/14 if the firm is using accrual accounting?
Cash from financing activities ......ANSWER......Which category on the
statement of cash flows summarizes cash receipts and payments to
owners and creditors of the company?
In the notes to financial statements ......ANSWER......Where would an
investor find a summary of a company's significant accounting
policies?
pg. 2
,3|Page
The company's financial statements fairly reflect its financial position
......ANSWER......Which assurance does an external audit report
provide for its readers?
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
Continual decrease in sales ......ANSWER......What is consistent with a
continual decline in gross profit if the firm's cost of goods sold remains
the same?
Notes payable expected to be paid in 18 months ......ANSWER......Which
form of debt should be reported in the long-term liability category?
Operating expenses &
Ordinary gains and losses ......ANSWER......Which values affect the
measurement of net income?
pg. 3
, 4|Page
Gross profit &
Income from operations ......ANSWER......Which items' subtotals are
included in a multi-step income statement?
Cash from investing activities ......ANSWER......What is a common
category in a statement of cash flows?
Cash from financing activities ......ANSWER......Which cash flow
category would include "cash received from investors"?
Cash payments for purchase of plant assets ......ANSWER......Which item
is an investing activity?
Increase in cash from investing activities ......ANSWER......What impact
does the sale of equipment have on the statement of cash flows?
The indirect method is more popular among large U.S. companies
......ANSWER......What is known about the direct and indirect methods
of preparing statements of cash flow?
The inventory department counts and inspects items as received and
forwards the receiving record to accounts payable.
......ANSWER......Which internal control is intended to ensure that a
pg. 4
