WGU C213 Foundation of Accounting Statement Study Guide Questions and Answers 2023/2024

WGU C213 Foundation of Accounting Statement Study Guide Questions and Answers 2023/2024 The impact a business's activities have on its overall financial performance - Correct Answer What does accounting focus on? Statement of cash flows - Correct Answer Which report summarizes cash collections and cash expenditures from operating, investing, and financing activities over a period of time? Employees - Correct Answer Which users would have a primary concern with an organization's ability to provide healthcare benefits? An increase in its compatibility to other companies - Correct Answer Which benefit does a corporation gain by following Generally Accepted Accounting Principles (GAPP)? The Public Company Accounting Oversight Board (PACOB) - Correct Answer Which body regulates a certified public accounting firm's audit practices when the firm is auditing a large publicly traded company? Information technology - Correct Answer What has had the most significant impact on Accounting practices? Ownership and Debt - Correct Answer What two items of information are revealed on the balance sheet? Owners equity - Correct Answer Which term is defined as the residual in the net assets of a company? In 2014, a company provides services to a customer for which cash will be collected the next year (2015). - Correct Answer Which situation should result in revenue recognition on the income statement for the year ending 12/31/14 if the firm is using accrual accounting? Cash from financing activities - Correct Answer Which category on the statement of cash flows summarizes cash receipts and payments to owners and creditors of the company? In the notes to financial statements - Correct Answer Where would an investor find a summary of a company's significant accounting policies? The company's financial statements fairly reflect its financial position - Correct Answer Which assurance does an external audit report provide for its readers? 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 Continual decrease in sales - Correct Answer What is consistent with a continual decline in gross profit if the firm's cost of goods sold remains the same? Notes payable expected to be paid in 18 months - Correct Answer Which form of debt should be reported in the long-term liability category? Operating expenses & Ordinary gains and losses - Correct Answer Which values affect the measurement of net income? Gross profit & Income from operations - Correct Answer Which items' subtotals are included in a multi-step income statement? Cash from investing activities - Correct Answer What is a common category in a statement of cash flows? Cash from financing activities - Correct Answer Which cash flow category would include "cash received from investors"? Cash payments for purchase of plant assets - Correct Answer Which item is an investing activity? Increase in cash from investing activities - Correct Answer What impact does the sale of equipment have on the statement of cash flows? The indirect method is more popular among large U.S. companies - Correct Answer What is known about the direct and indirect methods of preparing statements of cash flow?