COURSE CODE: WGU C213
EXAM DATE TIME ALLOWED
COURSE TITLE: Accounting for Decision Makers
— / — / —— 180 Minutes
INSTRUCTOR: —
◇
WGU C213 — Accounting for Decision Makers
Comprehensive Final Examination
ALL QUESTIONS ARE COMPULSORY
A MULTIPLE CHOICE QUESTIONS (100 Marks)
Choose the single best answer for each question. Write the correct letter in the space provided.
1. What does accounting focus on?
A. Only tax preparation
B. The impact a business's activities have on its overall financial performance
C. Only payroll processing
D. Marketing strategy development
◆
✦ CORRECT ANSWER: B. The impact a business's activities have on its overall financial performance
Rationale: Accounting focuses on measuring, analyzing, and communicating the financial effects of business activities. It
provides the quantitative information that decision-makers need to evaluate performance.
, 2. Which report summarizes cash collections and cash expenditures from operating, investing, and
financing activities over a period of time?
A. Income Statement
B. Balance Sheet
C. Statement of Cash Flows
D. Statement of Retained Earnings
◆
✦ CORRECT ANSWER: C. Statement of Cash Flows
Rationale: The Statement of Cash Flows summarizes all cash inflows and outflows organized into operating, investing, and
financing activities for a given period of time.
3. Which users would have a primary concern with an organization's ability to provide healthcare
benefits?
A. Investors
B. Creditors
C. Employees
D. Competitors
◆
✦ CORRECT ANSWER: C. Employees
Rationale: Employees are primary users of financial information concerned with job security, benefits, and the organization's
ability to meet compensation obligations.
4. Which benefit does a corporation gain by following Generally Accepted Accounting Principles
(GAAP)?
A. Reduced tax liability
B. An increase in its comparability to other companies
C. Automatic loan approval
D. Elimination of all business risk
◆
✦ CORRECT ANSWER: B. An increase in its comparability to other companies
Rationale: GAAP creates uniformity in financial reporting, allowing stakeholders to compare financial statements across different
companies meaningfully.
EXAM DATE TIME ALLOWED
COURSE TITLE: Accounting for Decision Makers
— / — / —— 180 Minutes
INSTRUCTOR: —
◇
WGU C213 — Accounting for Decision Makers
Comprehensive Final Examination
ALL QUESTIONS ARE COMPULSORY
A MULTIPLE CHOICE QUESTIONS (100 Marks)
Choose the single best answer for each question. Write the correct letter in the space provided.
1. What does accounting focus on?
A. Only tax preparation
B. The impact a business's activities have on its overall financial performance
C. Only payroll processing
D. Marketing strategy development
◆
✦ CORRECT ANSWER: B. The impact a business's activities have on its overall financial performance
Rationale: Accounting focuses on measuring, analyzing, and communicating the financial effects of business activities. It
provides the quantitative information that decision-makers need to evaluate performance.
, 2. Which report summarizes cash collections and cash expenditures from operating, investing, and
financing activities over a period of time?
A. Income Statement
B. Balance Sheet
C. Statement of Cash Flows
D. Statement of Retained Earnings
◆
✦ CORRECT ANSWER: C. Statement of Cash Flows
Rationale: The Statement of Cash Flows summarizes all cash inflows and outflows organized into operating, investing, and
financing activities for a given period of time.
3. Which users would have a primary concern with an organization's ability to provide healthcare
benefits?
A. Investors
B. Creditors
C. Employees
D. Competitors
◆
✦ CORRECT ANSWER: C. Employees
Rationale: Employees are primary users of financial information concerned with job security, benefits, and the organization's
ability to meet compensation obligations.
4. Which benefit does a corporation gain by following Generally Accepted Accounting Principles
(GAAP)?
A. Reduced tax liability
B. An increase in its comparability to other companies
C. Automatic loan approval
D. Elimination of all business risk
◆
✦ CORRECT ANSWER: B. An increase in its comparability to other companies
Rationale: GAAP creates uniformity in financial reporting, allowing stakeholders to compare financial statements across different
companies meaningfully.
