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WGU C213 Accounting For Decision Makers Objective Assessment Exam
- Which report summarizes cash collections and cash expenditures from
operating, investing, and financing activities over a period of time ANS Statement of cash flows
- Which users would have a primary concern with an organization's ability to
provide healthcare benefits ANS Employees
- Which benefit does a corporation gain by following Generally Accepted Ac-
counting Principles (GAAP) ANS 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
ANS The Public Com- pany Accounting Oversight Board (PCAOB)
- What has had the most significant impact on accounting practices
ANS Infor- mation technology 1 / 3
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- What two items of information are revealed on the balance sheet
ANS Owner- ship and Debt
- Which term is defined as the residual interest in the net assets of a compa-
ny ANS Owner's equity
- Which situation should result in revenue recognition on the income state-
ment for the year ending 12/31/14 if the firm is using accrual-basis account- ing ANS 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 ANS Cash flows from financing activities
- Where would an investor find a summary of a company's significant ac-
counting policies ANS In the notes to financial statements
- Which assurance does an external audit report provide for its readers
ANS - The company's financial statements fairly reflect its financial position
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12. Reliable: Information that can be verified
13. Relevant: Information having to do with the matter at hand
14. Material: Information that is important enough to make a difference
15. Conservatism: Information related to recognizing losses as they occur
16. Decision Cycle steps: Prepare financial statements
Analyze financial statements Gather information Make decision Implement decision
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