WGU C213 Accounting for Decision Makers PVAC
What does accounting focus on? Correct Answer: The impact a business's activities have on it's
overall financial performance
Which report summarizes cash collections and cash expenditures from operating, investing, and
financing activities over a period of time? Correct Answer: Statement of cash flows
Which users would have a primary concern with an organization's ability to provide healthcare
benefits? Correct Answer: Employees
Which benefit does a corporation gain by following Generally Accepted Accounting Principals
(GAAP)? 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? Correct Answer: The FASB
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: Debt,
Ownership
Which term is defined as the residual interest in the net assets of a company? Correct Answer:
Owner's equity
A corporation has total liabilities of $300 million, total owner's 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
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 the financial statements
What does it mean if a company has a debt ratio of 101.5%? Correct Answer: The company has
1.5% more total liabilities that total assets
Which assurances does an external audit report provide for its readers? Correct Answer: The
company's financial statements fairly reflects its financial position
What does accounting focus on? Correct Answer: The impact a business's activities have on it's
overall financial performance
Which report summarizes cash collections and cash expenditures from operating, investing, and
financing activities over a period of time? Correct Answer: Statement of cash flows
Which users would have a primary concern with an organization's ability to provide healthcare
benefits? Correct Answer: Employees
Which benefit does a corporation gain by following Generally Accepted Accounting Principals
(GAAP)? 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? Correct Answer: The FASB
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: Debt,
Ownership
Which term is defined as the residual interest in the net assets of a company? Correct Answer:
Owner's equity
A corporation has total liabilities of $300 million, total owner's 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
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 the financial statements
What does it mean if a company has a debt ratio of 101.5%? Correct Answer: The company has
1.5% more total liabilities that total assets
Which assurances does an external audit report provide for its readers? Correct Answer: The
company's financial statements fairly reflects its financial position
