WGU C213 FINAL EXAM QUESTIONS & ANSWERS 2026-20… 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 Final Exam
Questions & Answers
2026-2027 | Latest
Verified Exam
Verified Answers Exam Ready With Rationales
73 QUESTIONS
DOCUMENT OVERVIEW
This document contains 73 verified exam questions with correct answers and explanations,
providing a comprehensive resource for students. It covers financial principles and
accounting practices, ensuring a deep understanding of key concepts. Students can use
this material for effective study, review for exams, and preparation for certification
assessments.
CONTENTS
Financial Statements Q1–Q19
Cost Accounting Q20–Q43
Company Types Q44–Q49
Accounting Principles Q50–Q64
Page 1
, Cash Flow Analysis Q65–Q73
E XA M Q U EST I O N S
Q1 QUESTION 1 OF 73
Order of assets listed on the balance sheet
CORRECT ANSWER
Assets are listed in the order of liquidity. Liquidity is the amount of time it would usually take to
covert an asset into cash. Obviously, cash would be listed first, followed by marketable
investments (a company can quickly convert a short-term investment into cash). Accounts
receivable would be listed next followed by inventory, and long-term investments, fixed assets,
and intangibles.
Current assets are listed before long-term assets.
Current liabilities are listed before long-term liabilities, but there is no specific order they are
listed in outside of current and long-term.
There is also no specific order equity accounts are listed on the balance sheet; although,
typically you will see paid-in-capital followed by retained earnings followed by accumulated
other comprehensive income, and lastly, treasury stock.
Q2 QUESTION 2 OF 73
Direct Materials:
CORRECT ANSWER
The cost of the primary raw materials used in production. In producing French fries, the direct
materials cost is the cost of the potatoes.
Q3 QUESTION 3 OF 73
Describe the three financial statements.
Page 2
, CORRECT ANSWER
The balance sheet reports a company's assets, liabilities, and owners' equity. It reports the
financial position of a firm at a point in time.
The income statement reports the amount of net income earned by a company during a period.
Net income is the excess of a company's revenues over its expenses. It reports the financial
performance of a firm over a period of time.
The statement of cash flows reports the amount of cash collected and paid out by a company in
the following three types of activities: operating, investing, and financing over a period of time.
Q4 QUESTION 4 OF 73
Lenders
CORRECT ANSWER
Banks use companies' financial statements in making decisions about commercial loans. The
financial statements are useful because they help the lender predict the future ability of the
borrower to repay the loan.
Q5 QUESTION 5 OF 73
Investors
CORRECT ANSWER
Investors want information to help them estimate how much cash they can expect to directly
receive from the business in the future if they invest in it now.
Q6 QUESTION 6 OF 73
Company Management
CORRECT ANSWER
Managers use financial accounting data to formulate company goals, to compute bonuses for
employees, and to illuminate company weaknesses.
Page 3
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 Final Exam
Questions & Answers
2026-2027 | Latest
Verified Exam
Verified Answers Exam Ready With Rationales
73 QUESTIONS
DOCUMENT OVERVIEW
This document contains 73 verified exam questions with correct answers and explanations,
providing a comprehensive resource for students. It covers financial principles and
accounting practices, ensuring a deep understanding of key concepts. Students can use
this material for effective study, review for exams, and preparation for certification
assessments.
CONTENTS
Financial Statements Q1–Q19
Cost Accounting Q20–Q43
Company Types Q44–Q49
Accounting Principles Q50–Q64
Page 1
, Cash Flow Analysis Q65–Q73
E XA M Q U EST I O N S
Q1 QUESTION 1 OF 73
Order of assets listed on the balance sheet
CORRECT ANSWER
Assets are listed in the order of liquidity. Liquidity is the amount of time it would usually take to
covert an asset into cash. Obviously, cash would be listed first, followed by marketable
investments (a company can quickly convert a short-term investment into cash). Accounts
receivable would be listed next followed by inventory, and long-term investments, fixed assets,
and intangibles.
Current assets are listed before long-term assets.
Current liabilities are listed before long-term liabilities, but there is no specific order they are
listed in outside of current and long-term.
There is also no specific order equity accounts are listed on the balance sheet; although,
typically you will see paid-in-capital followed by retained earnings followed by accumulated
other comprehensive income, and lastly, treasury stock.
Q2 QUESTION 2 OF 73
Direct Materials:
CORRECT ANSWER
The cost of the primary raw materials used in production. In producing French fries, the direct
materials cost is the cost of the potatoes.
Q3 QUESTION 3 OF 73
Describe the three financial statements.
Page 2
, CORRECT ANSWER
The balance sheet reports a company's assets, liabilities, and owners' equity. It reports the
financial position of a firm at a point in time.
The income statement reports the amount of net income earned by a company during a period.
Net income is the excess of a company's revenues over its expenses. It reports the financial
performance of a firm over a period of time.
The statement of cash flows reports the amount of cash collected and paid out by a company in
the following three types of activities: operating, investing, and financing over a period of time.
Q4 QUESTION 4 OF 73
Lenders
CORRECT ANSWER
Banks use companies' financial statements in making decisions about commercial loans. The
financial statements are useful because they help the lender predict the future ability of the
borrower to repay the loan.
Q5 QUESTION 5 OF 73
Investors
CORRECT ANSWER
Investors want information to help them estimate how much cash they can expect to directly
receive from the business in the future if they invest in it now.
Q6 QUESTION 6 OF 73
Company Management
CORRECT ANSWER
Managers use financial accounting data to formulate company goals, to compute bonuses for
employees, and to illuminate company weaknesses.
Page 3
