WGU C213. PRE-ASSESSMENT: ACCOUNTING FOR DECISION MAKERS PVAC Graded A+
3 views 0 purchase
Course
WGU C213
Institution
WGU C213
What does accounting focus on? - 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? - ANSWER Statement of cash flows
Which...
wgu c213 pre assessment accounting for decision makers pvac
wgu c213 pre assessment accounting for decision makers pvac graded a
what does accounting focus on t
Written for
WGU C213
All documents for this subject (605)
Seller
Follow
Nathan2002
Reviews received
Content preview
WGU C213. PRE-ASSESSMENT:
ACCOUNTING FOR DECISION MAKERS
PVAC Graded A+
What does accounting focus on? - 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? - ANSWER Statement of cash
flows
Which users would have a primary concern with an organization's ability to provide
healthcare benefits? - ANSWER Employees
Which body regulates a certified public accounting firm's audit practices when the firm is
auditing a large publicly traded company? - ANSWER The Public Company Accounting
Oversight Board (PCAOB)
What has had the most significant impact on accounting practices? - ANSWER
Information technology
What two items of information are revealed on the balance sheet?
Choose 2 answers - ANSWER Ownership.
Debt
Which term is defined as the residual interest in the net assets of a company? -
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? - ANSWER $350 million
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? - 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? - ANSWER Cash flows from
financing activities
, Where would an investor find a summary of a company's significant accounting
policies? - ANSWER In the notes to financial statements
Which assurance does an external audit report provide for its readers? - ANSWER The
company's financial statements fairly reflect its financial position
Reliable - ANSWER Information that can be verified
Relevant - ANSWER Information having to do with the matter at hand
Material - ANSWER Information that is important enough to make a difference
Conservatism - ANSWER Information related to recognizing losses as they occur
steps in the decision cycle - ANSWER 1 Prepare financial statements.
2 Analyze financial statements.
3 Gather information.
4 Make decision.
5 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? - ANSWER 11.0
What is consistent with a continual decline in gross profit if the firm's cost of goods sold
remains the same? - ANSWER Continual decrease in sales
Which two cash flow adequacy ratios represent a cash cow? - ANSWER $6,991/$5,486.
$5,220/$1,875.
Which formula yields a cash times interest earned ratio of 11? - 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? - ANSWER
Notes payable expected to be paid in 18 months
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Nathan2002. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
