Financial Accounting > QUESTIONS & ANSWERS > C213|Western Governors University|Accounting for Decision Makers|With Complete Solutions (All)

C213|Western Governors University|Accounting for Decision Makers|With Complete Solutions

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What does accounting focus on? Correct Answer: The impact a business's activities have on it's overall financial performance Which report summarizes cash collections and cash expenditures fr... om operating, investing, and financing activities over a period of time? Correct Answer: Statement of cash flows Which users would have a primary concern with an organization's ability to provide healthcare benefits? Correct Answer: Employees Which benefit does a corporation gain by following Generally Accepted Accounting Principals (GAAP)? Correct Answer: An increase in its comparability to other companies Which body regulates a certified public accounting firm's audit practices when the firm is auditing a large publicly traded company? Correct Answer: The FASB What has had the most significant impact on accounting practices? Correct Answer: Information Technology What two items of information are revealed on the balance sheet? Correct Answer: Debt, Ownership Which term is defined as the residual interest in the net assets of a company? Correct Answer: Owner's equity A corporation has total liabilities of $300 million, total owner's equity of $100 million, and current assets of $50 million. What is the value of the firm's long-term assets? Correct 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? Correct 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? Correct Answer: Cash flows from financing activities Where would an investor find a summary of a company's significant accounting policies? Correct Answer: In the notes to the financial statements What does it mean if a company has a debt ratio of 101.5%? Correct Answer: The company has 1.5% more total liabilities that total assets Which assurances does an external audit report provide for its readers? Correct Answer: The company's financial statements fairly reflects its financial position [Show More]

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