WGU C213 Object Assessment Accounting
for Decision Makers Exam (Latest 2023/
2024) |Real Questions and Verified Answers |
Grade A
QUESTION
Which of the following is NOT one of the four general types of financial statement notes?
Answer:
Supplementary information required by the Inte...
WGU C213 Object Assessment Accounting for Decision Makers Exam (Latest 2023/ 2024 ) |Real Questions and Verified Answers | Grade A QUESTION Which of the following is NOT one of the four general types of financial statement notes? Answer: Supplementary information required by the Internal Revenue Service QUESTION Which of the following is an example of a significant accounting policy that would be explained in the notes to the financial statements? Answer: The method used to estimate depreciation on a piece of equipment QUESTION 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? - Answer: The disclosure of the uncertain, potential outcome of a lawsuit QUESTION 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? Answer: The description of all the individual items that comprise notes payable QUESTION An independent audit report is usually issued by Answer: A certified public accoun - tant QUESTION In completing an audit of a company's financial statements, auditors Answer: Pro- vide some assurance that the financial statements are not misleading QUESTION The accuracy of the information contained in the financial statements is the responsibility of the Answer: Management QUESTION Which of the following are the two economic factors that enable us to trust an independent auditor despite the fact that the auditor was hired by the company being audited? Answer: Reputation of auditor and risk of lawsuits QUESTION The idea that certain figures on an operating statement help to explain changes in figures on comparative balance sheets is referred to as Answer: Articulation QUESTION The idea that information becomes more useful when it can be related to a benchmark or a standard is referred to as Answer: Comparability QUESTION The notion that when doubt exists concerning two or more reporting alternatives, users should select the alternative with the least favorable impact on reported income, assets, and liabilities is referred to as Answer: Conservatism QUESTION Whether an item is big enough that proper accounting will make a differ - ence to users of accounting information is referred to as Answer: Materiality QUESTION The notion that information will be more useful if it will impact a decision is referred to as Answer: Relevance QUESTION If a corporation has total assets of $350,000, total liabilities of $150,000, and retained earnings of $100,000, what is the amount of capital stock? Answer: $100,000 QUESTION Which of the following is generally considered to be an asset? Answer: Accounts receivable QUESTION Which of the following generally is NOT considered to be a liability? Answer: Inven - tory QUESTION Which of the following decreases owners' equity? Answer: Operations generate a loss QUESTION The total amount invested to acquire an ownership interest in a corporation is called Answer: Common Stock and Preferred Stock QUESTION Current assets usually are listed on a balance sheet in Answer: Decreasing order of liquidity
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