WGU C213 ACCOUNTING FOR DECISION MAKERS FINAL EXAM

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WGU C213 ACCOUNTING FOR DECISION MAKERS FINAL EXAM

QUESTIONS AND VERIFIED ANSWERS / A+ GRADE

• Which of the following is NOT a service typically provided by large public

accounting firms?: Making management decisions

2. The initials CPA stand for: certified public accountant

• Which of the following is the government agency that stipulates the rules and

regulations that govern the collection of taxes in the United States?: In- ternal Revenue Service

• Which of the following organizations has specific legal authority to es- tablish

accounting standards for publicly held companies?: Securities and Exchange

Commission (SEC)

• Standards established by the International Accounting Standards Board are referred

to as: International Financial Reporting Standards

• The International Accounting Standards Board (IASB) is charged with de-

veloping worldwide accounting practices?: True

• 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

• With the current state of information technology, investors outside a com- pany are

now allowed access to a company's internal database of financial information and do their own customized analysis of a firm's performance.: - False 1 / 3

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• Sarbanes-Oxley Act: Increased federal oversight of the audit process resulted from the

passage of the following act of Congress -

• A borrower benefits from providing financial information regarding income and

expenses in the form of a lower interest rate on the loan because of reduced

uncertainty for the lender with regard to repayment.: True

• Which of the following is NOT one of the three primary financial state-

ments?: The Statement of Retained Earnings

• One reason for a company's preparing and providing financial statements is to

reduce uncertainty for an investor regarding the firm's future financial performance.: True

• The idea that businesses must be accounted for as though they will exist at least

for the foreseeable future is the: Going concern concept

• Economic resources that are owned or controlled by an enterprise are called:

Assets

• The idea that the activities of the entity are to be separated from those of the

individual owner is the: Separate entity concept

• Which of the following financial statements provides a picture of the

enterprise at a particular point in time?: Balance sheet

• Which of the following accounts is considered to be the most liquid?: Cash 2 / 3

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• Which of the following is an overall measure of the performance of a

business entity's activities?: Net income (or net loss)

19. Expense and revenue accounts appear on the: income statement

20. Revenues cause: An increase in net assets

21. Expenses generally cause: A decrease in net assets

• Which of the following would be included on an income statement?: Rent expense
• A major source of cash from operating activities is: Receipts from sale of goods
• Which of the following classifications does NOT appear on the Statement of Cash

Flows?: Borrowing

• Which of the following classifications refers to those activities whereby cash is

obtained or repaid to owners and creditors?: Financing

• Which of the following classifications refers to those activities associated with

buying and selling long-term assets?: Investing

• Vital information that CANNOT be captured solely by dollar amounts is

reported in a firm's: Notes to financial statements

• Which of the following is NOT one of the four general types of financial

statement notes?: Supplementary information required by the Internal Revenue Service

• 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 a disclosure of information NOT

recognized that would be explained in the notes to the financial statements?-

: The disclosure of the uncertain, potential outcome of a lawsuit

• Which of the following is an example of additional information about summary

totals that would be explained in the notes to the financial state- ments?: The

description of all the individual items that comprise notes payable

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