WGU C213 OBJECTIVE ASSESSMENT QUESTIONS & ANSWERS 20… EXAM
P R O F E S S I O N A L P R A C T I C E M AT E R I A L S
WGU C213 Objective
Assessment Questions
& Answers 2026-2027 |
Updated Exam Prep
Verified Answers Exam Ready With Rationales
208 QUESTIONS
DOCUMENT OVERVIEW
This document contains 208 verified questions with correct answers provided, focusing on
financial management concepts. It is suitable for comprehensive exam preparation, review,
and certification study, ensuring that learners can effectively grasp key financial principles
and enhance their understanding of liquidity, leverage, and financial statement analysis.
CONTENTS
• Financial Ratios • Financial Reporting Standards
• Accounting Principles • Financial Statements
• Cash Flow Analysis • Financial Statement Analysis
• Internal Controls • Earnings Management
• Budgeting and Forecasting • Cost Accounting
Page 1
, • Cost-Volume-Profit Analysis • Variable and Fixed Costs
• Operating Leverage
E XA M Q U EST I O N S
Q1 QUESTION 1 OF 208
The ability a company has to pay its debts in the short run is its
CORRECT ANSWER
Liquidity
Q2 QUESTION 2 OF 208
Which of the following is a measure of the liquid position of a corporation?
CORRECT ANSWER
Debt ratio
Q3 QUESTION 3 OF 208
Which of the following ratios is used to measure a firm's leverage?
CORRECT ANSWER
Debt Ratio
Q4 QUESTION 4 OF 208
Which of the following ratios is used to measure the profit earned on each dollar invested in
a firm?
Page 2
, CORRECT ANSWER
Return on Equity
Q5 QUESTION 5 OF 208
The emphasis in financial accounting is on which of the following external user groups?
CORRECT ANSWER
Investors and creditors
Q6 QUESTION 6 OF 208
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.
CORRECT ANSWER
True
Q7 QUESTION 7 OF 208
Which of the following accounts is considered to be the most liquid?
CORRECT ANSWER
Cash
Q8 QUESTION 8 OF 208
Which of the following types of accounts are NOT found on the balance sheet?
CORRECT ANSWER
Revenues
Page 3
, Q9 QUESTION 9 OF 208
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
CORRECT ANSWER
Balance sheet
Q10 QUESTION 10 OF 208
The idea that the activities of the entity are to be separated from those of the individual
owner is the
CORRECT ANSWER
Separate entity concept
Q11 QUESTION 11 OF 208
The basic accounting equation is
CORRECT ANSWER
Assets = Liabilities + Owners' Equity
Q12 QUESTION 12 OF 208
Which of the following would be included on an income statement?
CORRECT ANSWER
Rent expense
Q13 QUESTION 13 OF 208
Costs that are incurred during the normal operations of a business to generate revenues are
called
Page 4
P R O F E S S I O N A L P R A C T I C E M AT E R I A L S
WGU C213 Objective
Assessment Questions
& Answers 2026-2027 |
Updated Exam Prep
Verified Answers Exam Ready With Rationales
208 QUESTIONS
DOCUMENT OVERVIEW
This document contains 208 verified questions with correct answers provided, focusing on
financial management concepts. It is suitable for comprehensive exam preparation, review,
and certification study, ensuring that learners can effectively grasp key financial principles
and enhance their understanding of liquidity, leverage, and financial statement analysis.
CONTENTS
• Financial Ratios • Financial Reporting Standards
• Accounting Principles • Financial Statements
• Cash Flow Analysis • Financial Statement Analysis
• Internal Controls • Earnings Management
• Budgeting and Forecasting • Cost Accounting
Page 1
, • Cost-Volume-Profit Analysis • Variable and Fixed Costs
• Operating Leverage
E XA M Q U EST I O N S
Q1 QUESTION 1 OF 208
The ability a company has to pay its debts in the short run is its
CORRECT ANSWER
Liquidity
Q2 QUESTION 2 OF 208
Which of the following is a measure of the liquid position of a corporation?
CORRECT ANSWER
Debt ratio
Q3 QUESTION 3 OF 208
Which of the following ratios is used to measure a firm's leverage?
CORRECT ANSWER
Debt Ratio
Q4 QUESTION 4 OF 208
Which of the following ratios is used to measure the profit earned on each dollar invested in
a firm?
Page 2
, CORRECT ANSWER
Return on Equity
Q5 QUESTION 5 OF 208
The emphasis in financial accounting is on which of the following external user groups?
CORRECT ANSWER
Investors and creditors
Q6 QUESTION 6 OF 208
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.
CORRECT ANSWER
True
Q7 QUESTION 7 OF 208
Which of the following accounts is considered to be the most liquid?
CORRECT ANSWER
Cash
Q8 QUESTION 8 OF 208
Which of the following types of accounts are NOT found on the balance sheet?
CORRECT ANSWER
Revenues
Page 3
, Q9 QUESTION 9 OF 208
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
CORRECT ANSWER
Balance sheet
Q10 QUESTION 10 OF 208
The idea that the activities of the entity are to be separated from those of the individual
owner is the
CORRECT ANSWER
Separate entity concept
Q11 QUESTION 11 OF 208
The basic accounting equation is
CORRECT ANSWER
Assets = Liabilities + Owners' Equity
Q12 QUESTION 12 OF 208
Which of the following would be included on an income statement?
CORRECT ANSWER
Rent expense
Q13 QUESTION 13 OF 208
Costs that are incurred during the normal operations of a business to generate revenues are
called
Page 4
