C213 ACCOUNTING FOR DECISION
MAKERS-3 WGU EXAM QUESTIONS &
ANSWERS WITH CORRECT
SOLUTIONS
Question : 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
Correct answer: O The impact a business's activities have on
its overall financial performance
Question : 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
Correct answer: O Statement of Cash Flows
Question : Which users would have a primary concern with
an organization's ability to provide healthcare benefits?
O Suppliers O Employees O Vendors O Competitors
Correct answer: O Employees
Question : 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
Correct answer: O An increase in its comparability to other
companies
Question : 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)
Correct answer: O The Public Company Accounting
Oversight Board (PCAOB)
Question : What has had the most significant impact on
accounting practices?
O New product innovations O Mobile computing O Certification requirements O Information Technology
Correct answer: O Information Technology
Question : What two items of information are revealed on the
balance sheet?
Choose 2 answers
O Costs O Revenues O Debt O Expenses O Ownership
Correct answer: O Debt
O Ownership
Question : 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
Correct answer: O Owner's Equity
Question : 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