WGU C213 ACCOUNTING FOR DECISION MAKERS
OBJECTIVE ASSESSMENT EXAM WITH COMPLETE
QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) ALREADY GRADED A+
What is the first step a business professional should take when confronted with a
situation that may involve a ethical conflict? - ✔✔✔ Correct Answer> Discuss the
problem with an immediate supervisor
Company A calculated the following information under traditional and activity-
based costing for the production and sale of 1,000 units of Product B:
Traditional ABC
Sales $100,000 $100,000
Cost of goods sold $70,000 $110,000
Gross margin $30,000 ($10,000)
Which decision should be made about the selling price of Product B? - ✔✔✔ Correct
Answer> The price of Product B should be increased.
What is the most common professional designation for external auditors? - ✔✔✔
Correct Answer>Certified Public Accountant
,Which of the following is true of double-entry system of bookkeeping? - ✔✔✔
Correct Answer>It was developed in the 1930's- 1940's in Italy
Which of the following activities would internal auditors NOT typically perform in
a large company? -✔✔✔ Correct Answer>Prepare the primary financial statements
Which of the following audit processes attempts to identify areas that may
deserve attention by using techniques such as comparative ratio analysis? -✔✔✔
Correct Answer>Analytical procedures
Which of the following is NOT typically true of accounting information? -✔✔✔
Correct Answer> The information relates to future time periods
Which of the following is NOT a function of accounting? - ✔✔✔ Correct Answer>
Executing sales transactions for organizations
Which of the following is NOT a key component of the definition of accounting? -
✔✔✔ Correct Answer>Qualitative
Which is the most correct definition of accounting? - ✔✔✔ Correct Answer>A system of
providing quantitative information, primarily financial in nature, about economic
entities that is intended to be useful in making economic decisions
Which of the following is NOT one of the three primary financial statements? -
✔✔✔ Correct Answer>Statement of retained earnings
,Which of the following financial statements reports a company's resources,
obligations, and owners equity - ✔✔✔ Correct Answer>Balance sheet
Which of the following financial statements reports the excess of the company's
revenues over its expenses? -✔✔✔ Correct Answer> Income statement
Which of the following financial statements reports the amount of cash collected
and paid out by a company? - ✔✔✔ Correct Answer>Statement of cash flows
The emphasis on financial accounting is on which of the following external user
groups? -✔✔✔ Correct Answer> Investors and creditors
The primary internal group that uses accounting information is? - ✔✔✔ Correct Answer
> Management
Internal reports are generally used by? - ✔✔✔ Correct Answer>Management
Which of the following is NOT an external user of financial information? -✔✔✔
Correct Answer> Management
Which of the following in NOT true of the Financial Accounting Standards Board
(FASB)? -✔✔✔ Correct Answer> It is a government agency
Generally accepted accounting principals are - ✔✔✔ Correct Answer>Developed by
accounting rule makers
, The initials GAAP stand for - ✔✔✔ Correct Answer> Generally Accepted Accounting
Principals
The current standard-setting board for accounting in the private sector is -✔✔✔
Correct Answer>Financial Accounting Standards Board (FASB)
Standards established by the International Standards Accounting Board are
referred to as -✔✔✔ Correct Answer> International Financial Reporting Standards
Which of the following is the government agency that stipulates the rules and
regulations that govern the collection of taxes in the United States? -✔✔✔ Correct
Answer>Internal Revenue Service (IRS)
Which of the following organizations has specific legal authority to establish
accounting standards for publicly held companies? -✔✔✔ Correct Answer>Security
and Exchange Commission (SEC)
The organization that develops worldwide accounting standards is the - ✔✔✔
Correct Answer>International Accounting Standards Board (IASB)
Which of the following is NOT a service typically provided by large public
accounting firms? -✔✔✔ Correct Answer>Making management decisions
The initials CPA stand for -✔✔✔ Correct Answer>Certified Public Accountant
OBJECTIVE ASSESSMENT EXAM WITH COMPLETE
QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) ALREADY GRADED A+
What is the first step a business professional should take when confronted with a
situation that may involve a ethical conflict? - ✔✔✔ Correct Answer> Discuss the
problem with an immediate supervisor
Company A calculated the following information under traditional and activity-
based costing for the production and sale of 1,000 units of Product B:
Traditional ABC
Sales $100,000 $100,000
Cost of goods sold $70,000 $110,000
Gross margin $30,000 ($10,000)
Which decision should be made about the selling price of Product B? - ✔✔✔ Correct
Answer> The price of Product B should be increased.
What is the most common professional designation for external auditors? - ✔✔✔
Correct Answer>Certified Public Accountant
,Which of the following is true of double-entry system of bookkeeping? - ✔✔✔
Correct Answer>It was developed in the 1930's- 1940's in Italy
Which of the following activities would internal auditors NOT typically perform in
a large company? -✔✔✔ Correct Answer>Prepare the primary financial statements
Which of the following audit processes attempts to identify areas that may
deserve attention by using techniques such as comparative ratio analysis? -✔✔✔
Correct Answer>Analytical procedures
Which of the following is NOT typically true of accounting information? -✔✔✔
Correct Answer> The information relates to future time periods
Which of the following is NOT a function of accounting? - ✔✔✔ Correct Answer>
Executing sales transactions for organizations
Which of the following is NOT a key component of the definition of accounting? -
✔✔✔ Correct Answer>Qualitative
Which is the most correct definition of accounting? - ✔✔✔ Correct Answer>A system of
providing quantitative information, primarily financial in nature, about economic
entities that is intended to be useful in making economic decisions
Which of the following is NOT one of the three primary financial statements? -
✔✔✔ Correct Answer>Statement of retained earnings
,Which of the following financial statements reports a company's resources,
obligations, and owners equity - ✔✔✔ Correct Answer>Balance sheet
Which of the following financial statements reports the excess of the company's
revenues over its expenses? -✔✔✔ Correct Answer> Income statement
Which of the following financial statements reports the amount of cash collected
and paid out by a company? - ✔✔✔ Correct Answer>Statement of cash flows
The emphasis on financial accounting is on which of the following external user
groups? -✔✔✔ Correct Answer> Investors and creditors
The primary internal group that uses accounting information is? - ✔✔✔ Correct Answer
> Management
Internal reports are generally used by? - ✔✔✔ Correct Answer>Management
Which of the following is NOT an external user of financial information? -✔✔✔
Correct Answer> Management
Which of the following in NOT true of the Financial Accounting Standards Board
(FASB)? -✔✔✔ Correct Answer> It is a government agency
Generally accepted accounting principals are - ✔✔✔ Correct Answer>Developed by
accounting rule makers
, The initials GAAP stand for - ✔✔✔ Correct Answer> Generally Accepted Accounting
Principals
The current standard-setting board for accounting in the private sector is -✔✔✔
Correct Answer>Financial Accounting Standards Board (FASB)
Standards established by the International Standards Accounting Board are
referred to as -✔✔✔ Correct Answer> International Financial Reporting Standards
Which of the following is the government agency that stipulates the rules and
regulations that govern the collection of taxes in the United States? -✔✔✔ Correct
Answer>Internal Revenue Service (IRS)
Which of the following organizations has specific legal authority to establish
accounting standards for publicly held companies? -✔✔✔ Correct Answer>Security
and Exchange Commission (SEC)
The organization that develops worldwide accounting standards is the - ✔✔✔
Correct Answer>International Accounting Standards Board (IASB)
Which of the following is NOT a service typically provided by large public
accounting firms? -✔✔✔ Correct Answer>Making management decisions
The initials CPA stand for -✔✔✔ Correct Answer>Certified Public Accountant
