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C211 WGU OA UPDATED Actual Questions and CORRECT Answers

HEAL100 Health Care — exam and revision material · Other

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Health Care exam material, 12 pages. Originally published on StudyMerit.

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12
Academic year
2025/2026
Language
English

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C213 WGU OA Prep 1 / 12 1. The ability a company has to pay its debts in the short run is its Answer: Liquidity 2. Which of the following is a measure of the liquid position of a corporation?- Answer: Debt ratio 3. Which of the following ratios is used to measure a firm's leverage? Answer: Debt Ratio 4. Which of the following ratios is used to measure the profit earned on each dollar invested in a firm? Answer: Return on Equity 5. The emphasis in financial accounting is on which of the following external user groups? Answer: Investors and creditors 6. The primary internal group that uses accounting information is Answer: Manage- ment 7. Internal reports are generally used by Answer: Management 8. Which of the following is NOT an external user of financial information? Answer: - Management 9. Which of the follo 10. wing is NOT true of the Financial Accounting Standards Board (FASB)? Answer: It is a government agency 11. Generally accepted accounting principles are Answer: Developed by accounting rule makers 12. The initials GAAP stand for Answer: Generally Accepted Accounting Principles 13. The current standard-setting board for accounting in the private sector is the Answer: Financial Accounting Standards Board (FASB) 14. The organization that develops worldwide accounting standards is the Answer: In- ternational Accounting Standards Board (IASB) 15. The initials CPA stand for Answer: Certified Public Accountant 16. Which of the following is NOT a service typically provided by large public accounting firms? Answer: Making management decisions 17. Standards established by the International Accounting Standards Board are referred to as Answer: International Financial Reporting Standards 18. Which of the following is the government agency that stipulates the rules and regulations that govern the collection of taxes in the United States? Answer: In- ternal Revenue Service 19. Which of the following is NOT a reason for the integration of worldwide accounting standards? Answer: the theoretical necessity of a common set of accounting standards 20. The International Accounting Standards Board (IASB) is charged with developing worldwide accounting practices? Answer: True 21. With the current state of information technology, investors outside a com- pany are now allowed access to a company's internal database of financial

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C213 WGU OA Prep 2 / 12 information and do their own customized analysis of a firm's performance. Answer: - False 22. Increased federal oversight of the audit process resulted from the passage of the following act of Congress - Answer: Sarbanes-Oxley Act 23. A borrower benefits from providing financial information regarding income and expenses in the form of a lower interest rate on the loan because of reduced uncertainty for the lender with regard to repayment. Answer: True 24. Which of the following is NOT one of the three primary financial state- ments? Answer: The Statement of Retained Earnings 25. One reason for a company's preparing and providing financial statements is to reduce uncertainty for an investor regarding the firm's future financial performance. Answer: True 26. Which of the following accounts is considered to be the most liquid? Answer: Cash 27. Which of the following types of accounts are NOT found on the balance sheet? Answer: Revenues 28. The financial statement that reports resources owned, the obligations to transfer resources to other organizations, and the claims by the entity's owners is known as the Answer: Balance sheet 29. The idea that the activities of the entity are to be separated from those of the individual owner is the Answer: Separate entity concept 30. The basic accounting equation is Answer: Assets = Liabilities + Owners' Equity 31. Which of the following would be included on an income statement? Answer: Rent expense 32. Costs that are incurred during the normal operations of a business to generate revenues are called Answer: Expenses 33. Another name for the income statement is Answer: Statement of earnings 34. Revenues cause Answer: An increase in net assets 35. The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or a year, is called a(n) Answer: Income Statement 36. Which of the following activities would NOT be classified as an investing activity? Answer: Purchase of inventory 37. A major source of cash from operating activities is Answer: Receipts from sale of goods 38. Which of the following classifications refers to those activities associated with buying and selling long-term assets? Answer: Investing 39. Which of the following classifications does NOT appear on the Statement of Cash Flows? Answer: Borrowing

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C213 WGU OA Prep 3 / 12 40. Vital information that CANNOT be captured solely by dollar amounts is reported in a firm's Answer: Notes to financial statements 41. 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 42. 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 43. 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 44. 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 45. An independent audit report is usually issued by Answer: A certified public accoun- tant 46. In completing an audit of a company's financial statements, auditors Answer: Pro- vide some assurance that the financial statements are not misleading 47. The accuracy of the information contained in the financial statements is the responsibility of the Answer: Management 48. 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 49. 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 50. The idea that information becomes more useful when it can be related to a benchmark or a standard is referred to as Answer: Comparability 51. 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 52. 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 53. The notion that information will be more useful if it will impact a decision is referred to as Answer: Relevance 54. 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 55. Which of the following is generally considered to be an asset? Answer: Accounts receivable

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