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WGU C213 ACCOUNTING FOR DECISION MAKERS
PRE ASSESSMENT EXAM
QUESTIONS AND VERIFIED ANSWERS / A+ GRADE
- 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.-
ANS: D. 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?
- Cash receipts and disbursements sheet
- Cash flow schedule
- Summary of cash receipts 1 / 4
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- Statement of cash flows
ANS: D. Statement of cash flows
- Which users would have a primary concern with an organization's ability to provide
health benefits?
- Competitors
- Employees
- Vendors
- Suppliers
ANS: B. 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
ANS: C. An increase in its compa- rability 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) 2 / 4
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- Another certified public accounting (CPA) firm
- The Internal Revenue Service (IRS)
ANS: A. The Public Company Accounting Over- sight Board (PCAOB)
- What has had the most significant impact on accounting practices? 3 / 4
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- Certification requirements
- New product innovations
- Information technology
- Mobile computing
ANS: C. Information technology
- What two items of information are revealed on the balance sheet?
- Ownership
- Debt
- Expenses
- Revenues
- Costs
ANS: A. Ownership
- Debt
- Which term is defined as the residual interest in the net assets of a compa- ny?
- Operating income
- Liabilities
- Revenues
- Owners' equity
ANS: D. Owners' equity
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