WGU C213 PRE ASSESSMENT
COMPREHENSIVE REVIEW 2026
QUESTIONS WITH ANSWERS GRADED A+
◉Which report summarizes cash collections and cash expenditures
from operating, investing, and financing activities over a period of
time?
- Cash receipts and disbursements sheet
- Cash flow schedule
- Summary of cash receipts
- Statement of cash flows. Answer: Statement of cash flows
◉Which users would have a primary concern with an organization's
ability to provide healthcare benefits?
- Competitors
- Employees
- Vendors
- Suppliers. Answer: Employees
,◉Which benefit does a corporation gain by following Generally
Accepted Accounting Principles (GAAP)?
- A decrease in its income tax obligations
- A decrease in the amount of net income it reports
- An increase in its comparability to other companies
- An increase in the amount of assets it reports. 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?
- The Public Company Accounting Oversight Board (PCAOB)
- The Financial Accounting Standards Board (FASB)
- Another certified public accounting firm (CPA)
- The Internal Revenue Service (IRS). Answer: The Public Company
Accounting Oversight Board (PCAOB)
◉What has had the most significant impact on accounting
practices?. Answer: Information technology
◉What two items of information are revealed on the balance sheet?.
Answer: Ownership and Debt
◉Which term is defined as the residual interest in the net assets of a
company?. Answer: Owners' equity
, ◉A corporation has a 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?. Answer: $350 Million. Combine
the liabilities with assets.
◉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?. 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?.
Answer: Cash flows from financing activities
◉Where would an investor find a summary of a company's
significant accounting policies?. Answer: In the notes to financial
statements
◉Which assurance does an external audit report provide for its
readers?
- The company will be a good credit risk
- The company will generate net income.
COMPREHENSIVE REVIEW 2026
QUESTIONS WITH ANSWERS GRADED A+
◉Which report summarizes cash collections and cash expenditures
from operating, investing, and financing activities over a period of
time?
- Cash receipts and disbursements sheet
- Cash flow schedule
- Summary of cash receipts
- Statement of cash flows. Answer: Statement of cash flows
◉Which users would have a primary concern with an organization's
ability to provide healthcare benefits?
- Competitors
- Employees
- Vendors
- Suppliers. Answer: Employees
,◉Which benefit does a corporation gain by following Generally
Accepted Accounting Principles (GAAP)?
- A decrease in its income tax obligations
- A decrease in the amount of net income it reports
- An increase in its comparability to other companies
- An increase in the amount of assets it reports. 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?
- The Public Company Accounting Oversight Board (PCAOB)
- The Financial Accounting Standards Board (FASB)
- Another certified public accounting firm (CPA)
- The Internal Revenue Service (IRS). Answer: The Public Company
Accounting Oversight Board (PCAOB)
◉What has had the most significant impact on accounting
practices?. Answer: Information technology
◉What two items of information are revealed on the balance sheet?.
Answer: Ownership and Debt
◉Which term is defined as the residual interest in the net assets of a
company?. Answer: Owners' equity
, ◉A corporation has a 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?. Answer: $350 Million. Combine
the liabilities with assets.
◉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?. 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?.
Answer: Cash flows from financing activities
◉Where would an investor find a summary of a company's
significant accounting policies?. Answer: In the notes to financial
statements
◉Which assurance does an external audit report provide for its
readers?
- The company will be a good credit risk
- The company will generate net income.
