WGU C213 OBJECTIVE ASSESSMENT
ACCOUNTING FOR DECISION MAKERS:
EXAM (LATEST 2026/2027 UPDATE), WITH
CORRECT/ACCURATE ANSWERS
WGU C213 OBJECTIVE ASSESSMENT
ACCOUNTING FOR DECISION MAKERS
WGU C213 – Accounting for Decision Makers
Question 1
Which of the following is NOT a reason for the integration of worldwide accounting
standards?
A. Increased comparability of financial statements
B. Reduced costs for multinational corporations
C. Improved investor confidence across borders
D. The theoretical necessity of a common set of accounting standards
Correct Answer: D
Rationale:
The integration of worldwide accounting standards is driven by practical economic
benefits, such as improved comparability, reduced reporting costs, and increased
transparency for investors. There is no theoretical requirement that accounting must
be standardized globally. Instead, integration is motivated by globalization of capital
markets. Therefore, the theoretical necessity is not a valid reason.
Question 2
The International Accounting Standards Board (IASB) is charged with developing
worldwide accounting practices.
,A. True
B. False
Correct Answer: A
Rationale:
The IASB is responsible for issuing International Financial Reporting Standards (IFRS).
These standards are intended to create consistency and comparability in financial
reporting across countries. While adoption varies by jurisdiction, the IASB’s mission is
global in scope. This makes the statement true.
Question 3
With the current state of information technology, investors outside a company are now
allowed access to a company’s internal database of financial information to perform
customized analyses.
A. True
B. False
Correct Answer: B
Rationale:
Investors do not have direct access to a company’s internal accounting systems or
databases. Instead, they rely on published financial statements and disclosures
prepared according to accounting standards. While technology improves access
to reported information, internal databases remain confidential. Therefore, the
statement is false.
Question 4
Increased federal oversight of the audit process resulted from the passage of which
act of Congress?
,A. Securities Act of 1933
B. Dodd-Frank Act
C. Sarbanes-Oxley Act
D. Gramm-Leach-Bliley Act
Correct Answer: C
Rationale:
The Sarbanes-Oxley Act (SOX) was enacted in response to major corporate accounting
scandals such as Enron and WorldCom. It established the Public Company Accounting
Oversight Board (PCAOB) and strengthened internal control requirements. SOX
significantly increased federal oversight of auditors and corporate governance. This
makes it the correct answer.
Question 5
A borrower benefits from providing detailed financial information because it reduces
uncertainty for the lender and may result in a lower interest rate.
A. True
B. False
Correct Answer: A
Rationale:
When borrowers provide transparent financial information, lenders can more
accurately assess credit risk. Reduced uncertainty lowers the lender’s perceived risk of
default. As a result, lenders may offer more favorable loan terms, including lower
interest rates. This makes the statement true.
Question 6
Which of the following is NOT one of the three primary financial statements?
, A. Balance Sheet
B. Income Statement
C. Statement of Cash Flows
D. Statement of Retained Earnings
Correct Answer: D
Rationale:
The three primary financial statements are the balance sheet, income statement, and
statement of cash flows. While the statement of retained earnings is important, it is
considered a supplemental statement. Its information is often included within the
equity section of the balance sheet. Therefore, it is not one of the three primary
statements.
Question 7
One reason companies prepare and provide financial statements is to reduce
uncertainty for investors regarding future financial performance.
A. True
B. False
Correct Answer: A
Rationale:
Financial statements provide historical data that investors use to assess trends,
profitability, and risk. Although they do not predict the future, they reduce uncertainty
by offering reliable information. This allows investors to make informed decisions.
Thus, the statement is true.
Question 8
Which of the following accounts is considered the most liquid?
ACCOUNTING FOR DECISION MAKERS:
EXAM (LATEST 2026/2027 UPDATE), WITH
CORRECT/ACCURATE ANSWERS
WGU C213 OBJECTIVE ASSESSMENT
ACCOUNTING FOR DECISION MAKERS
WGU C213 – Accounting for Decision Makers
Question 1
Which of the following is NOT a reason for the integration of worldwide accounting
standards?
A. Increased comparability of financial statements
B. Reduced costs for multinational corporations
C. Improved investor confidence across borders
D. The theoretical necessity of a common set of accounting standards
Correct Answer: D
Rationale:
The integration of worldwide accounting standards is driven by practical economic
benefits, such as improved comparability, reduced reporting costs, and increased
transparency for investors. There is no theoretical requirement that accounting must
be standardized globally. Instead, integration is motivated by globalization of capital
markets. Therefore, the theoretical necessity is not a valid reason.
Question 2
The International Accounting Standards Board (IASB) is charged with developing
worldwide accounting practices.
,A. True
B. False
Correct Answer: A
Rationale:
The IASB is responsible for issuing International Financial Reporting Standards (IFRS).
These standards are intended to create consistency and comparability in financial
reporting across countries. While adoption varies by jurisdiction, the IASB’s mission is
global in scope. This makes the statement true.
Question 3
With the current state of information technology, investors outside a company are now
allowed access to a company’s internal database of financial information to perform
customized analyses.
A. True
B. False
Correct Answer: B
Rationale:
Investors do not have direct access to a company’s internal accounting systems or
databases. Instead, they rely on published financial statements and disclosures
prepared according to accounting standards. While technology improves access
to reported information, internal databases remain confidential. Therefore, the
statement is false.
Question 4
Increased federal oversight of the audit process resulted from the passage of which
act of Congress?
,A. Securities Act of 1933
B. Dodd-Frank Act
C. Sarbanes-Oxley Act
D. Gramm-Leach-Bliley Act
Correct Answer: C
Rationale:
The Sarbanes-Oxley Act (SOX) was enacted in response to major corporate accounting
scandals such as Enron and WorldCom. It established the Public Company Accounting
Oversight Board (PCAOB) and strengthened internal control requirements. SOX
significantly increased federal oversight of auditors and corporate governance. This
makes it the correct answer.
Question 5
A borrower benefits from providing detailed financial information because it reduces
uncertainty for the lender and may result in a lower interest rate.
A. True
B. False
Correct Answer: A
Rationale:
When borrowers provide transparent financial information, lenders can more
accurately assess credit risk. Reduced uncertainty lowers the lender’s perceived risk of
default. As a result, lenders may offer more favorable loan terms, including lower
interest rates. This makes the statement true.
Question 6
Which of the following is NOT one of the three primary financial statements?
, A. Balance Sheet
B. Income Statement
C. Statement of Cash Flows
D. Statement of Retained Earnings
Correct Answer: D
Rationale:
The three primary financial statements are the balance sheet, income statement, and
statement of cash flows. While the statement of retained earnings is important, it is
considered a supplemental statement. Its information is often included within the
equity section of the balance sheet. Therefore, it is not one of the three primary
statements.
Question 7
One reason companies prepare and provide financial statements is to reduce
uncertainty for investors regarding future financial performance.
A. True
B. False
Correct Answer: A
Rationale:
Financial statements provide historical data that investors use to assess trends,
profitability, and risk. Although they do not predict the future, they reduce uncertainty
by offering reliable information. This allows investors to make informed decisions.
Thus, the statement is true.
Question 8
Which of the following accounts is considered the most liquid?
