WGU C213. PRE-ASSESSMENT: ACCOUNTING FOR DECISION MAKERS PVAC 2024 STUDY GUIDE

1. What does accounting focus on? O The impact a business's activities have on its public image O The impact a business's activities have on its relationship with customers O The impact a business's activities have on the environment O The impact a business's activities have on its overall financial performance O The impact a business's activities have on its overall financial performance 2. Which report summarizes cash collections and cash expenditures from operating, investing, and financing activities over a period of time? O Statement of Cash Flows O Cash flow schedule O Summary of cash receipts O Cash receipts and disbursements O Statement of Cash Flows 3. Which users would have a primary concern with an organization's ability to provide healthcare benefits? O Suppliers O Employees O Vendors O Competitors O Employees 4. Which benefit does a corporation gain by following Generally Accepted Accounting Principals (GAAP)? O An increase in the amount of assets it reports O A decrease in its income tax obligations O A decrease in the amount of net income it reports O An increase in its comparability to other companies O An increase in its comparability to other companies We have an expert-written solution to this problem! 5. Which body regulates a certified public accounting firm's audit practices when the firm is auditing a large publicly traded company? O Another certified accounting firm (CPA) O The Public Company Accounting Oversight Board (PCAOB) O The internal revenue service (IRS) O The financial accounting standards board (FASB) O The Public Company Accounting Oversight Board (PCAOB) 6. What has had the most significant impact on accounting practices? O New product innovations O Mobile computing O Certification requirements O Information Technology O Information Technology 7. What two items of information are revealed on the balance sheet? Choose 2 answers O Costs O Revenues O Debt O Expenses O Ownership O Debt O Ownership 8. Which term is defined as the residual interest in the net assets of a company? O Owner's Equity O Revenues O Operating Income O Liabilities O Owner's Equity 9. 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? O $250 million O $350 million O $400 million O $450 million Assets = Liabilities + Equity x + 50m = 300m + 100m Solving for x = 350m O $350 million 10. 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? O In 2014, a company collects cash from a customer for services it will provide next year (2015) O In 2014, a company collects cash from a customer for services it provided in the previous year (2013) O In 2014, a company enters into a contract whereby it agrees to provide services to a customer next year in (2015) O In 2014, a company provide services to a customer for cash will be collected the next year (2015) O In 2014, a company provide services to a customer for cash will be collected the next year (2015) 11. Which category on the statement of cash flows summarizes cash receipts and payments to owners and creditors of the company? O Cash flows from business activities O Cash flows from financing activities O Cash flows from investing activities O Cash flows from operating activities O Cash flows from financing activities 12. Where would an investor find a summary of a company's significant accounting policies? O In the income statement O In the balance sheet O In the statement of cash flows O In the notes to financial statement O In the notes to financial statement 13. Which assurance does an external audit report provide for its readers? O The company will be a good credit risk O The company's financial statement fairly reflecst it financial position O The company will generate positive cash flows O The company will generate net income O The company's financial statement fairly reflects it financial position