WGU C213 PA AND OA PRACTICE EXAM
PAPER 2026 QUESTIONS WITH ANSWERS
GRADED A+
◉ Ownership and Debt. Answer: What two items of information are
revealed on the balance sheet?
◉ 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
◉ The indirect method is more popular among large U.S. companies.
Answer: What is known about the direct and indirect methods of
preparing statements of cash flow?
,◉ They search for and investigate fraud.
&
They review financial records and internal controls. Answer: Which
actions do internal auditors perform to assist in maintaining the integrity
of financial statements?
◉ They ensure that financial statement users are provided with reliable
information to use in decision making. Answer: What is a significant
role of the U.S. Securities and Exchange Commission (SEC) in financial
reporting?
◉ Differential cost. Answer: What is a cost that will change in the future
based upon the decision made?
◉ Administrative expenses &
Selling expenses. Answer: Which are examples are period costs?
◉ Salary cost of the receptionist
Advertising cost. Answer: A company manufactures custom-built
wooden bookshelves.
Which two costs would the company classify as period costs?
Answer Choices: Wood cost, Salary cost of the craftsperson, Salary cost
of the receptionist, Advertising cost
, ◉ Direct labor costs
Overhead costs. Answer: Which two costs are included when calculating
inventory costs?
◉ A company produces five different products. The products are highly
differentiated and have significantly different demands for their use of
overhead costs. Answer: In which scenario would activity-based costing
be more appropriate than traditional costing?
◉ Batch-level activities. Answer: Which category of ABC activities are
machine setup and material movement costs associated with?
◉ The price of Product B should be increased. Answer: 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?
◉ Profits
PAPER 2026 QUESTIONS WITH ANSWERS
GRADED A+
◉ Ownership and Debt. Answer: What two items of information are
revealed on the balance sheet?
◉ 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
◉ The indirect method is more popular among large U.S. companies.
Answer: What is known about the direct and indirect methods of
preparing statements of cash flow?
,◉ They search for and investigate fraud.
&
They review financial records and internal controls. Answer: Which
actions do internal auditors perform to assist in maintaining the integrity
of financial statements?
◉ They ensure that financial statement users are provided with reliable
information to use in decision making. Answer: What is a significant
role of the U.S. Securities and Exchange Commission (SEC) in financial
reporting?
◉ Differential cost. Answer: What is a cost that will change in the future
based upon the decision made?
◉ Administrative expenses &
Selling expenses. Answer: Which are examples are period costs?
◉ Salary cost of the receptionist
Advertising cost. Answer: A company manufactures custom-built
wooden bookshelves.
Which two costs would the company classify as period costs?
Answer Choices: Wood cost, Salary cost of the craftsperson, Salary cost
of the receptionist, Advertising cost
, ◉ Direct labor costs
Overhead costs. Answer: Which two costs are included when calculating
inventory costs?
◉ A company produces five different products. The products are highly
differentiated and have significantly different demands for their use of
overhead costs. Answer: In which scenario would activity-based costing
be more appropriate than traditional costing?
◉ Batch-level activities. Answer: Which category of ABC activities are
machine setup and material movement costs associated with?
◉ The price of Product B should be increased. Answer: 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?
◉ Profits
