WGU C213. PRE-ASSESSMENT:
ACCOUNTING FOR DECISION MAKERS
PVAC 2024/2025
What does accounting focus on? - Precise Answer ✔✔The impact a
business's activities have on its overall financial performance
Which report summarizes cash collections and cash expenditures from
operating, investing, and financing activities over a period of time? -
Precise Answer ✔✔Statement of cash flows
Which users would have a primary concern with an organization's ability
to provide healthcare benefits? - Precise Answer ✔✔Employees
Which body regulates a certified public accounting firm's audit practices
when the firm is auditing a large publicly traded company? - Precise
Answer ✔✔The Public Company Accounting Oversight Board
(PCAOB)
What has had the most significant impact on accounting practices? -
Precise Answer ✔✔Information technology
What two items of information are revealed on the balance sheet?
,Choose 2 answers - Precise Answer ✔✔Ownership.
Debt
Which term is defined as the residual interest in the net assets of a
company? - Precise Answer ✔✔Owners' equity
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? - Precise 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? - Precise 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? - Precise Answer
✔✔Cash flows from financing activities
Where would an investor find a summary of a company's significant
accounting policies? - Precise Answer ✔✔In the notes to financial
statements
, Which assurance does an external audit report provide for its readers? -
Precise Answer ✔✔The company's financial statements fairly reflect its
financial position
Reliable - Precise Answer ✔✔Information that can be verified
Relevant - Precise Answer ✔✔Information having to do with the matter
at hand
Material - Precise Answer ✔✔Information that is important enough to
make a difference
Conservatism - Precise Answer ✔✔Information related to recognizing
losses as they occur
steps in the decision cycle - Precise Answer ✔✔1 Prepare financial
statements.
2 Analyze financial statements.
3 Gather information.
4 Make decision.
5 Implement decision
Partial financial information for a company is as follows:
Current assets $36,543
ACCOUNTING FOR DECISION MAKERS
PVAC 2024/2025
What does accounting focus on? - Precise Answer ✔✔The impact a
business's activities have on its overall financial performance
Which report summarizes cash collections and cash expenditures from
operating, investing, and financing activities over a period of time? -
Precise Answer ✔✔Statement of cash flows
Which users would have a primary concern with an organization's ability
to provide healthcare benefits? - Precise Answer ✔✔Employees
Which body regulates a certified public accounting firm's audit practices
when the firm is auditing a large publicly traded company? - Precise
Answer ✔✔The Public Company Accounting Oversight Board
(PCAOB)
What has had the most significant impact on accounting practices? -
Precise Answer ✔✔Information technology
What two items of information are revealed on the balance sheet?
,Choose 2 answers - Precise Answer ✔✔Ownership.
Debt
Which term is defined as the residual interest in the net assets of a
company? - Precise Answer ✔✔Owners' equity
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? - Precise 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? - Precise 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? - Precise Answer
✔✔Cash flows from financing activities
Where would an investor find a summary of a company's significant
accounting policies? - Precise Answer ✔✔In the notes to financial
statements
, Which assurance does an external audit report provide for its readers? -
Precise Answer ✔✔The company's financial statements fairly reflect its
financial position
Reliable - Precise Answer ✔✔Information that can be verified
Relevant - Precise Answer ✔✔Information having to do with the matter
at hand
Material - Precise Answer ✔✔Information that is important enough to
make a difference
Conservatism - Precise Answer ✔✔Information related to recognizing
losses as they occur
steps in the decision cycle - Precise Answer ✔✔1 Prepare financial
statements.
2 Analyze financial statements.
3 Gather information.
4 Make decision.
5 Implement decision
Partial financial information for a company is as follows:
Current assets $36,543
