WGU C213 Pre-Assessment 2024 with Complete Solutions Rated A+ What does accounting focus on? - Correct Answer The impact a business's activities have on its overall financial performance Which report summarizes cash collections and cash expenditures from operating, investing, and financing activities over a period of time? - Correct Answer Statement of cash flows Which users would have a primary concern with an organization's ability to provide healthcare benefits?
- Correct Answer Employees
Which body regulates a certified public accounting firm's audit practices when the firm is auditing a large publicly traded company? - Correct Answer The Public Company Accounting Oversight Board
(PCAOB)
What has had the most significant impact on accounting practices? - Correct Answer Information technology What two items of information are revealed on the balance sheet?Choose 2 answers - Correct Answer Ownership.Debt Which term is defined as the residual interest in the net assets of a company? - Correct Answer Owners' equity 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? - Correct Answer $350 million 1 / 3
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? - Correct 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? - Correct Answer Cash flows from financing activities Where would an investor find a summary of a company's significant accounting policies? - Correct Answer In the notes to financial statements Which assurance does an external audit report provide for its readers? - Correct Answer The company's financial statements fairly reflect its financial position Reliable - Correct Answer Information that can be verified Relevant - Correct Answer Information having to do with the matter at hand Material - Correct Answer Information that is important enough to make a difference Conservatism - Correct Answer Information related to recognizing losses as they occur What are steps in the decision cycle? - Correct Answer 1 Prepare financial statements.
- Analyze financial statements.
- Gather information.
- Make decision.
- Implement decision.
Partial financial information for a company is as follows:
Current assets $36,543 2 / 3
Total assets $58,719 Current liabilities $24,824 Total liabilities $48,561 Stockholders' equity $10,158 Sales $46,997 Net Income $ 3,761 Market value of shares $41,316 What is the price-earnings (PE) ratio for this company? - Correct Answer 11.0 What is consistent with a continual decline in gross profit if the firm's cost of goods sold remains the same? - Correct Answer Continual decrease in sales Which two cash flow adequacy ratios represent a cash cow? - Correct Answer $6,991/$5,486.
$5,220/$1,875.
Which formula yields a cash times interest earned ratio of 11? - Correct Answer Cash before interest and taxes of $11,000 / cash paid for interest of $1,000 Which form of debt should be reported in the long-term liability category? - Correct Answer Notes payable expected to be paid in 18 months In January of year 1, a company began doing business as a corporation in order to sell technology- related accessories and services. During its first month of operations, the following events occurred: January 1 The corporation received $1,000,000 in cash in exchange for stock issued to stockholders.January 3 The corporation borrowed $250,000 from bank. The loan is a four-year loan with an interest rate of 12 percent, payable each year on January 1 beginning in year 2.January 5
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