WGU C213 PA & OA Study Guide EXAM MOST TESTED QUESTIONS
AND VERIFIED SOLUTIONS/GET IT 100% ACCURATE!! 2026!!
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?
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?
,WGU C213 PA & OA Study Guide EXAM MOST TESTED QUESTIONS
AND VERIFIED SOLUTIONS/GET IT 100% ACCURATE!! 2026!!
In the notes to financial statements - (ANSWER)Where would an investor find a summary of a company's
significant accounting policies?
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?
Gross profit &
Income from operations - (ANSWER)Which items' subtotals are included in a multi-step income
statement?
, WGU C213 PA & OA Study Guide EXAM MOST TESTED QUESTIONS
AND VERIFIED SOLUTIONS/GET IT 100% ACCURATE!! 2026!!
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 company does not
mistakenly pay a supplier for an invoice that includes more items than were actually received?
Pressure to meet internal sales goals &
Preparing to qualify for a bank loan - (ANSWER)What are common reasons for managers to manipulate
reported earnings?
Firms must not provide certain non-audit services to audit clients, such as management functions or
legal services. &
Firms must report to and be retained by the audit committee rather than the CFO or other company
management. - (ANSWER)Which requirements must accounting firms that audit public companies meet
under the Sarbanes-Oxley Act?
They search for and investigate fraud.
&
AND VERIFIED SOLUTIONS/GET IT 100% ACCURATE!! 2026!!
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?
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?
,WGU C213 PA & OA Study Guide EXAM MOST TESTED QUESTIONS
AND VERIFIED SOLUTIONS/GET IT 100% ACCURATE!! 2026!!
In the notes to financial statements - (ANSWER)Where would an investor find a summary of a company's
significant accounting policies?
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?
Gross profit &
Income from operations - (ANSWER)Which items' subtotals are included in a multi-step income
statement?
, WGU C213 PA & OA Study Guide EXAM MOST TESTED QUESTIONS
AND VERIFIED SOLUTIONS/GET IT 100% ACCURATE!! 2026!!
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 company does not
mistakenly pay a supplier for an invoice that includes more items than were actually received?
Pressure to meet internal sales goals &
Preparing to qualify for a bank loan - (ANSWER)What are common reasons for managers to manipulate
reported earnings?
Firms must not provide certain non-audit services to audit clients, such as management functions or
legal services. &
Firms must report to and be retained by the audit committee rather than the CFO or other company
management. - (ANSWER)Which requirements must accounting firms that audit public companies meet
under the Sarbanes-Oxley Act?
They search for and investigate fraud.
&
