WGU C213 – ACCOUNTING FOR
DECISION MAKERS QUESTIONS AND
ANSWERS 100% PASS
1. What does accounting focus on?
A. Managing and directing the daily operations of a business
B. Monitoring stock market trends to guide investments
C. The impact a business’s activities have on its overall financial performance
D. Measuring customer satisfaction and retention
✅ Correct Answer: C. The impact a business’s activities have on its overall financial
performance
2. Which report summarizes cash collections and cash expenditures from
operating, investing, and financing activities over a period of time?
A. Balance Sheet
B. Statement of Retained Earnings
C. Income Statement
D. Statement of Cash Flows
✅ Correct Answer: D. Statement of Cash Flows
3. Which users would have a primary concern with an organization’s ability to
provide healthcare benefits?
A. Government Regulators
B. Stockholders
C. Employees
D. Creditors
✅ Correct Answer: C. Employees
@2025 Exam Material 1
,4. Which body regulates a certified public accounting firm’s audit practices when
the firm is auditing a large publicly traded company?
A. Securities and Exchange Commission (SEC)
B. Financial Accounting Standards Board (FASB)
C. Internal Revenue Service (IRS)
D. Public Company Accounting Oversight Board (PCAOB)
✅ Correct Answer: D. Public Company Accounting Oversight Board (PCAOB)
5. What has had the most significant impact on accounting practices?
A. The use of standard paper filing systems
B. Increased use of bartering in small businesses
C. Information technology
D. Manual calculation of financial ratios
✅ Correct Answer: C. Information technology
6. What two items of information are revealed on the balance sheet? (Choose
two)
A. Revenue and Net Income
B. Ownership and Debt
C. Expenses and Gross Profit
D. Assets and Dividends
✅ Correct Answers: B. Ownership and Debt
7. Which term is defined as the residual interest in the net assets of a company?
A. Revenues
B. Liabilities
C. Assets
D. Owners' Equity
✅ Correct Answer: D. Owners' Equity
@2025 Exam Material 2
, 8. A corporation has total liabilities of $300 million, total owners’ equity of $100
million, and current assets of $50 million. What is the value of the firm’s long-
term assets?
A. $100 million
B. $250 million
C. $350 million
D. $400 million
✅ Correct Answer: C. $350 million
9. Which situation should result in revenue recognition on the income statement
for the year ending 12/31/2014 if the firm is using accrual-basis accounting?
A. In 2015, a company collects cash for a product it shipped in 2014
B. In 2014, a company collects a deposit for future work
C. In 2014, a company provides services for which cash will be collected in 2015
D. In 2015, a company signs a service agreement to begin work in 2016
✅ Correct Answer: C. In 2014, a company provides services for which cash will be collected
in 2015
10. Which category on the Statement of Cash Flows summarizes cash receipts and
payments to owners and creditors of the company?
A. Operating Activities
B. Investing Activities
C. Financing Activities
D. Equity Activities
✅ Correct Answer: C. Financing Activities
11. Where would an investor find a summary of a company’s significant
accounting policies?
A. Income Statement
B. Management's Discussion & Analysis (MD&A)
C. Notes to the Financial Statements
@2025 Exam Material 3
DECISION MAKERS QUESTIONS AND
ANSWERS 100% PASS
1. What does accounting focus on?
A. Managing and directing the daily operations of a business
B. Monitoring stock market trends to guide investments
C. The impact a business’s activities have on its overall financial performance
D. Measuring customer satisfaction and retention
✅ Correct Answer: C. The impact a business’s activities have on its overall financial
performance
2. Which report summarizes cash collections and cash expenditures from
operating, investing, and financing activities over a period of time?
A. Balance Sheet
B. Statement of Retained Earnings
C. Income Statement
D. Statement of Cash Flows
✅ Correct Answer: D. Statement of Cash Flows
3. Which users would have a primary concern with an organization’s ability to
provide healthcare benefits?
A. Government Regulators
B. Stockholders
C. Employees
D. Creditors
✅ Correct Answer: C. Employees
@2025 Exam Material 1
,4. Which body regulates a certified public accounting firm’s audit practices when
the firm is auditing a large publicly traded company?
A. Securities and Exchange Commission (SEC)
B. Financial Accounting Standards Board (FASB)
C. Internal Revenue Service (IRS)
D. Public Company Accounting Oversight Board (PCAOB)
✅ Correct Answer: D. Public Company Accounting Oversight Board (PCAOB)
5. What has had the most significant impact on accounting practices?
A. The use of standard paper filing systems
B. Increased use of bartering in small businesses
C. Information technology
D. Manual calculation of financial ratios
✅ Correct Answer: C. Information technology
6. What two items of information are revealed on the balance sheet? (Choose
two)
A. Revenue and Net Income
B. Ownership and Debt
C. Expenses and Gross Profit
D. Assets and Dividends
✅ Correct Answers: B. Ownership and Debt
7. Which term is defined as the residual interest in the net assets of a company?
A. Revenues
B. Liabilities
C. Assets
D. Owners' Equity
✅ Correct Answer: D. Owners' Equity
@2025 Exam Material 2
, 8. A corporation has total liabilities of $300 million, total owners’ equity of $100
million, and current assets of $50 million. What is the value of the firm’s long-
term assets?
A. $100 million
B. $250 million
C. $350 million
D. $400 million
✅ Correct Answer: C. $350 million
9. Which situation should result in revenue recognition on the income statement
for the year ending 12/31/2014 if the firm is using accrual-basis accounting?
A. In 2015, a company collects cash for a product it shipped in 2014
B. In 2014, a company collects a deposit for future work
C. In 2014, a company provides services for which cash will be collected in 2015
D. In 2015, a company signs a service agreement to begin work in 2016
✅ Correct Answer: C. In 2014, a company provides services for which cash will be collected
in 2015
10. Which category on the Statement of Cash Flows summarizes cash receipts and
payments to owners and creditors of the company?
A. Operating Activities
B. Investing Activities
C. Financing Activities
D. Equity Activities
✅ Correct Answer: C. Financing Activities
11. Where would an investor find a summary of a company’s significant
accounting policies?
A. Income Statement
B. Management's Discussion & Analysis (MD&A)
C. Notes to the Financial Statements
@2025 Exam Material 3
