WGU C213 Pre-assessment (Accounting) 2023

WGU C213 Pre-assessment (Accounting) 2023 Leave the first rating Students also studied Terms in this set (70) Save C211 Pre-Assessment Answers 50 terms mileshwPreview

C213 OA

77 terms shawnaramey Preview PA for C213 69 terms brooke1014Preview WGU C 82 terms Cai What does accounting focus on?

• The impact a business's activities have on its

relationships with customers

• The impact a business's activities have on the

environment.

• The impact a business's activities have on its public

image.

• The impact a business's activities have on its overall

financial performance.The impact a business's activities on its overall financial performance.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

Statement of cash flows Which users would have a primary concern with an organization's ability to provide healthcare benefits?

• Competitors
• Employees
• Vendors
• Suppliers

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

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)

The Public Company Accounting Oversight Board (PCAOB) What has had the most significant impact on accounting practices?Information technology What two items of information are revealed on the balance sheet?Ownership and Debt Which term is defined as the residual interest in the net assets of a company?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?$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?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?Cash flows from financing activities Where would an investor find a summary of a company's significant accounting policies?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.
• The company's financial statements fairly reflect its

financial position.

• The company will generate positive cash flows

The company's financial statements fairly reflect its financial position

Order the steps in the decision cycle from first to last:

Gather information, prepare financial statements, analyze financial statements, make decision, and implement decision.Prepare financial statements, analyze financial statements, gather information, make decision, and implement decision

Partial financial information for a company is as follows:

Current assets $36,543 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?

11.0 Market value of shares/net income What does it mean if a company has a debt ratio of

101.5%?

The company has 1.5% more total liabilities than total assets.What is consistent with a continual decline in gross profit if the firm's cost of goods sold remains the same?

• Continual decrease in salaries
• Continual increase in interest
• Continual increase in taxes
• Continual decrease in sales

Continual decrease in sales Which two cash flow adequacy ratios represent a cash

cow?: - 4,510/4932, - 6,991/5,486, - 8,091/9374, -

5220/1875, - or 7589/9210.6,991/5,486 and 5,220/1,875 Which formula yields a cash time interest earned ratio of 11?

• Cash before interest and taxes of $11,000 / cash paid for

income taxes of $1,000

• Cash before interest and taxes of $11,000 / cash paid for

interest of $1,000

• Cash before interest and taxes of $11,000 / cash from

operations of $1,000

• Cash before interest and taxes of $11,000 / cash paid for

acquisitions of $1,000 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?

• Unearned revenue that will be earned in 9 months.
• Notes payable expected to be paid in 18 months.
• Accounts payable due in 30 days.
• Salaries payable due in 2 weeks

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 The corporation purchased equipment to be

used in the business for $200,000 cash.

• January 8 The corporation purchased inventory costing

$200,000 by paying $120,000 in cash. The remainder was put on credit accounts with suppliers.

• January 15 The corporation hired five employees. Each

employee will be paid $1,000 at the end of each month.

• January 30 The corporation paid $6,000 cash for a one-

year insurance policy. The policy per Equipment will increase 200,000 and cash will decrease 200,000 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 The corporation purchased equipment to be

used in the business for $200,000 cash.

• January 8 The corporation purchased inventory costing

$200,000 by paying $120,000 in cash. The remainder was put on credit accounts with suppliers.

• January 15 The corporation hired five employees. Each

employee will be paid $1,000 at the end of each month.

• January 30 The corporation paid $6,000 cash for a one-

year insurance policy. The policy per Prepaid insurance will increase 6,000 and cash will decrease 6,000 Which two values affect the measurement of net income?

• Dividends paid
• Stockholder contributions
• Operating expenses
• Ordinary gains and losses

Operating expenses and ordinary gains and losses Which two items' subtotals are included in a multi-step income statement?

• Gross profit
• Total assets
• Current Liabilities
• Income from operations

Gross profit and income from operations