WGU C213 OA Exam Questions and Verified Answers

The emphasis in financial accounting is on which external user groups? - Investors and creditors Internal reports are generally used by - Management The initials GAAP stand for - Generally Accepted Accounting Principles Which of the following is NOT a service typically provided by large public accounting firms? - Making management decisions Which of the following organizations has specific legal authority to establish accounting standards for publicly held companies? - Securities and Exchange Commission (SEC) Which of the following is NOT a reason for the integration of worldwide accounting standards? - the theoretical necessity of a common set of accounting standards Markanich Company purchased land for $90,000 in 2010. In 2013, the land is valued at $115,000. The land would appear on the company's books in 2013 at - $90,000 The idea that businesses must be accounted for as though they will exist at least for the foreseeable future is the - Going concern concept Which of the following would be included on an income statement? - Rent expense Revenues cause - An increase in net assets Which of the following is an example of a significant accounting policy that would be explained in the notes to the financial statements? - The method used to estimate depreciation on a piece of equipment Which of the following is an example of additional information about summary totals that would be explained in the notes to the financial statements? - The description of all the individual items that comprise notes payable An independent audit report is usually issued by - A certified public accountant In completing an audit of a company's financial statements, auditors - Provide some assurance that the financial statements are not misleading Which of the following are the two economic factors that enable us to trust an independent auditor despite the fact that the auditor was hired by the company being audited? - Reputation of auditor and risk of lawsuits The idea that certain figures on an operating statement help to explain changes in figures on comparative balance sheets is referred to as - Articulation The notion that when doubt exists concerning two or more reporting alternatives, users should select the alternative with the least favorable impact on reported income, assets, and liabilities is referred to as - Conservatism Which of the following generally is NOT considered to be a liability? a)Inventory b)Notes payable c)Taxes payable d)Accounts payable - A) Inventory Owners of a corporation are referred to as - Stockholders Which of the following decreases owners' equity? a)Additional investments in the company are made by the owners b)Operations generate a loss c)None of these decreases owners' equity d)Operations generate a profit that is retained in the company - B)Operations generate a loss