C213 WGU OA Prep study guide With Answers Graded A+ Latest

C213 WGU OA Prep study
guide With Answers Graded
A+ Latest
2025/2026
1. The ability a company has to pay its debts in the short run is its: Liquidity
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2. Which of the following is a measure of the liquid position of a corporation?-
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: Debt ratio
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3. Which of the following ratios is used to measure a firm's leverage?: Debt
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R atio
4. Which of the following ratios is used to measure the profit earned on each d
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ollar invested in a firm?: Return on Equity
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5. The emphasis in financial accounting is on which of the following external u
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ser groups?: Investors and creditors
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6. The primary internal group that uses accounting information is: Manage-
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g ment
7. Internal reports are generally used by: Management
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8. Which of the following is NOT an external user of financial information?: -
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Management
9. Which of the following is NOT true of the Financial Accounting Standards B
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oard (FASB)?: It is a government agency
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,10.Generally accepted accounting principles are: Developed by accounting rul
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makers
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,11.The initials GAAP stand for: Generally Accepted Accounting Principles
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12.The current standard-
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setting board for accounting in the private sector is the: Financial Accounting St
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andards Board (FASB) g g




13.The organization that develops worldwide accounting standards is the: In-
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g ternational Accounting Standards Board (IASB)
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14.The initials CPA stand for: Certified Public Accountant
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15.Which of the following is NOT a service typically provided by large public a
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ccounting firms?: Making management decisions
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16.Standards established by the International Accounting Standards Board
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are referred to as: International Financial Reporting Standards
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17.Which of the following is the government agency that stipulates the rules a
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nd regulations that govern the collection of taxes in the United States?: In-
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g ternal Revenue Service
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18.Which of the following is NOT a reason for the integration of worldwide acc
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ounting standards?: the theoretical necessity of a common set of accountin
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g stand ards
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19.The International Accounting Standards Board (IASB) is charged with
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developing worldwide accounting practices?: True
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20.With the current state of information technology, investors outside a com-
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g pany are now allowed access to a company's internal database of financial
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