WESTERN GOVERNORS UNIVERSITY · COLLEGE OF BUSINESS
WGU C213 Topics 1-6
Practice Question Bank
Comprehensive Review — 51% of Exam Competencies
Course: Accounting for Decision Makers
Edition 1 · September 2026
Table of Contents
1. Instructions for Use 2
2. Practice Questions with Answers & Rationales — Topics 1-6 2
WGU C213 · Western Governors University Page 1
,WGU C213 TOPICS 1-6 PRACTICE GUIDE INSTRUCTIONS & PRACTICE QUESTIONS
How to Use This Guide
This comprehensive review contains 85+ practice questions covering Topics 1-6 of WGU
C213: Accounting for Decision Makers. Each question includes four answer choices, a clearly
marked correct answer, and a detailed rationale. 51% of the exam competencies are
represented in this bank.
Category: Financial Accounting Fundamentals — Topics 1-6
1 The emphasis in financial accounting is on which of the following external user
groups?
A Investors and creditors
B Management
C Government regulators
D Employees
Why A is correct: Financial accounting focuses on providing information to external users,
primarily investors and creditors, who make investment and lending decisions.
B — Management is an internal user.
C — Government regulators are external but not the primary focus.
D — Employees are not the primary emphasis of financial accounting.
,2 The primary internal group that uses accounting information is:
A Investors
B Creditors
C Management
D Stockholders
Why C is correct: Management is the primary internal group that uses accounting
information for planning, controlling, and decision-making within the organization.
A — Investors are external users.
B — Creditors are external users.
D — Stockholders are external users.
3 Internal reports are generally used by:
A Investors
B Creditors
C Management
D Government agencies
Why C is correct: Internal reports are prepared for and used by management to support
internal decision-making, planning, and control activities.
A — Investors use external financial reports.
B — Creditors use external financial reports.
D — Government agencies use reports for regulatory purposes.
, 4 Which of the following is NOT an external user of financial information?
A Investors
B Creditors
C Management
D Government regulators
Why C is correct: Management is an internal user of accounting information, not an
external user.
A — Investors are external users.
B — Creditors are external users.
D — Government regulators are external users.
5 Which of the following is NOT true of the Financial Accounting Standards Board
(FASB)?
A It is the current standard-setting board for accounting in the private sector
B It is a government agency
C It develops generally accepted accounting principles
D It is a private-sector organization
Why B is correct: The FASB is NOT a government agency. It is a private-sector, not-for-
profit organization that establishes accounting standards.
A — This is true; FASB is the current standard-setting board.
C — This is true; FASB develops GAAP.
D — This is true; FASB is a private-sector organization.
WGU C213 Topics 1-6
Practice Question Bank
Comprehensive Review — 51% of Exam Competencies
Course: Accounting for Decision Makers
Edition 1 · September 2026
Table of Contents
1. Instructions for Use 2
2. Practice Questions with Answers & Rationales — Topics 1-6 2
WGU C213 · Western Governors University Page 1
,WGU C213 TOPICS 1-6 PRACTICE GUIDE INSTRUCTIONS & PRACTICE QUESTIONS
How to Use This Guide
This comprehensive review contains 85+ practice questions covering Topics 1-6 of WGU
C213: Accounting for Decision Makers. Each question includes four answer choices, a clearly
marked correct answer, and a detailed rationale. 51% of the exam competencies are
represented in this bank.
Category: Financial Accounting Fundamentals — Topics 1-6
1 The emphasis in financial accounting is on which of the following external user
groups?
A Investors and creditors
B Management
C Government regulators
D Employees
Why A is correct: Financial accounting focuses on providing information to external users,
primarily investors and creditors, who make investment and lending decisions.
B — Management is an internal user.
C — Government regulators are external but not the primary focus.
D — Employees are not the primary emphasis of financial accounting.
,2 The primary internal group that uses accounting information is:
A Investors
B Creditors
C Management
D Stockholders
Why C is correct: Management is the primary internal group that uses accounting
information for planning, controlling, and decision-making within the organization.
A — Investors are external users.
B — Creditors are external users.
D — Stockholders are external users.
3 Internal reports are generally used by:
A Investors
B Creditors
C Management
D Government agencies
Why C is correct: Internal reports are prepared for and used by management to support
internal decision-making, planning, and control activities.
A — Investors use external financial reports.
B — Creditors use external financial reports.
D — Government agencies use reports for regulatory purposes.
, 4 Which of the following is NOT an external user of financial information?
A Investors
B Creditors
C Management
D Government regulators
Why C is correct: Management is an internal user of accounting information, not an
external user.
A — Investors are external users.
B — Creditors are external users.
D — Government regulators are external users.
5 Which of the following is NOT true of the Financial Accounting Standards Board
(FASB)?
A It is the current standard-setting board for accounting in the private sector
B It is a government agency
C It develops generally accepted accounting principles
D It is a private-sector organization
Why B is correct: The FASB is NOT a government agency. It is a private-sector, not-for-
profit organization that establishes accounting standards.
A — This is true; FASB is the current standard-setting board.
C — This is true; FASB develops GAAP.
D — This is true; FASB is a private-sector organization.
