A+ GRADED 1
WGU C213 Accounting for
Decision Makers – Objective
Assessment Exam (2025/2026
Actual Questions and Verified
Answers, Grade A)
Instructions
Work through the questions one by one, without rushing.
Each question has four answer options—pick the most accurate one.
The correct Answer is shown in green for clarity.
Read the rationales carefully to reinforce accounting concepts.
Below is a Secti
set of 45 multiple-choice questions designed for the WGU C213 exam, reflecting
2025/2026 standards in managerial accounting, financial statements, cost analysis, and decision -
making tools. Each question includes four options (A–D). The correct answer is highlighted in
green. A detailed rationale follows each question to explain the concept .
, 2
Question 1
What is the primary purpose of managerial accounting? A. To comply with
external financial reporting requirements B. To provide information for internal
decision-making and planning C. To audit financial statements for accuracy D. To
prepare tax returns for the organization
B. To provide information for internal decision-making and planning
Rationale: Managerial accounting focuses on internal users, supplying data for
budgeting, forecasting, and performance evaluation, unlike financial accounting
(A), which is external-facing. Auditing (C) and taxes (D) are separate functions.
Question 2
Which financial statement shows a company's profitability over a period? A.
Balance sheet B. Income statement C. Statement of cash flows D. Statement of
retained earnings
B. Income statement Rationale: The income statement (profit and loss) reports
revenues, expenses, and net income for a period, per FASB 2025 guidelines.
Balance sheet (A) is a snapshot, cash flows (C) track liquidity, and retained
earnings (D) shows equity changes.
Question 3
In cost-volume-profit (CVP) analysis, what is the break-even point? A. The point
where total revenues equal total costs B. The maximum profit achievable C. The
minimum sales volume required D. The fixed cost per unit
A. The point where total revenues equal total costs Rationale: Break-even
occurs when contribution margin covers fixed costs (no profit/loss), a key CVP
tool for 2025 decision-making models. B is target profit, C is sales goal, D is a cost
component.
Question 4
WGU C213 Accounting for
Decision Makers – Objective
Assessment Exam (2025/2026
Actual Questions and Verified
Answers, Grade A)
Instructions
Work through the questions one by one, without rushing.
Each question has four answer options—pick the most accurate one.
The correct Answer is shown in green for clarity.
Read the rationales carefully to reinforce accounting concepts.
Below is a Secti
set of 45 multiple-choice questions designed for the WGU C213 exam, reflecting
2025/2026 standards in managerial accounting, financial statements, cost analysis, and decision -
making tools. Each question includes four options (A–D). The correct answer is highlighted in
green. A detailed rationale follows each question to explain the concept .
, 2
Question 1
What is the primary purpose of managerial accounting? A. To comply with
external financial reporting requirements B. To provide information for internal
decision-making and planning C. To audit financial statements for accuracy D. To
prepare tax returns for the organization
B. To provide information for internal decision-making and planning
Rationale: Managerial accounting focuses on internal users, supplying data for
budgeting, forecasting, and performance evaluation, unlike financial accounting
(A), which is external-facing. Auditing (C) and taxes (D) are separate functions.
Question 2
Which financial statement shows a company's profitability over a period? A.
Balance sheet B. Income statement C. Statement of cash flows D. Statement of
retained earnings
B. Income statement Rationale: The income statement (profit and loss) reports
revenues, expenses, and net income for a period, per FASB 2025 guidelines.
Balance sheet (A) is a snapshot, cash flows (C) track liquidity, and retained
earnings (D) shows equity changes.
Question 3
In cost-volume-profit (CVP) analysis, what is the break-even point? A. The point
where total revenues equal total costs B. The maximum profit achievable C. The
minimum sales volume required D. The fixed cost per unit
A. The point where total revenues equal total costs Rationale: Break-even
occurs when contribution margin covers fixed costs (no profit/loss), a key CVP
tool for 2025 decision-making models. B is target profit, C is sales goal, D is a cost
component.
Question 4
