WGU C213 OBJECT ASSESSMENT ACCOUNTING FOR DECISION MAKERS EXAM: (LATEST 2026/2027 UPDATE), WITH CORRECT/ACCURATE ANSWERS

WGU C213 OBJECT ASSESSMENT
ACCOUNTING FOR DECISION MAKERS
EXAM: (LATEST 2026/2027 UPDATE), WITH
CORRECT/ACCURATE ANSWERS
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WGU C213 OBJECT ASSESSMENT
ACCOUNTING FOR DECISION MAKERS
EXAM
WGU C213 – Accounting for Decision Makers




Question 1

Which of the following is NOT considered one of the four general categories of notes
to the financial statements?

A. Explanations of significant accounting policies
B. Disclosures of information not recognized in the financial statements
C. Additional details supporting summary totals in the statements
D. Supplementary information required by the Internal Revenue Service

Correct Answer: D. Supplementary information required by the Internal
Revenue Service

Rationale:
The four general types of financial statement notes are disclosures of accounting
policies, information not recognized in the statements, additional details about
reported amounts, and other relevant disclosures required by GAAP. Information
required by the IRS is intended for tax reporting purposes, not financial reporting.
Financial statement notes are designed to help investors and creditors understand
financial data, not to satisfy tax authorities. Therefore, IRS-required supplementary
information is excluded.

,Question 2

Which of the following best represents a significant accounting policy that must be
disclosed in the notes to the financial statements?

A. The total number of employees
B. The method used to estimate depreciation on equipment
C. The company’s advertising slogan
D. The date the company was founded

Correct Answer: B. The method used to estimate depreciation on equipment

Rationale:
Significant accounting policies explain how management applies accounting principles
to financial data. Depreciation methods directly affect reported expenses, assets, and
income. Users of financial statements need this information to compare financial
results across periods and companies. Non-financial information, such as slogans or
founding dates, does not impact accounting measurements.




Question 3

Which of the following is an example of information not recognized in the financial
statements but disclosed in the notes?

A. Cash balances
B. Accounts payable
C. The uncertain outcome of a pending lawsuit
D. Inventory valuation

Correct Answer: C. The uncertain outcome of a pending lawsuit

Rationale:
Contingent liabilities, such as lawsuits with uncertain outcomes, are often disclosed in
the notes rather than recorded directly in the financial statements. This is because the
amount or likelihood of loss may not yet be measurable. Disclosure ensures

,transparency without overstating liabilities. This practice helps users assess potential
future risks.




Question 4

Which of the following best illustrates additional information about summary
totals disclosed in the notes?

A. The company’s mission statement
B. The breakdown of individual items included in notes payable
C. The number of outstanding shares
D. The company’s organizational structure

Correct Answer: B. The breakdown of individual items included in notes
payable

Rationale:
Financial statements often summarize large categories into single line items. Notes
provide detailed explanations of what makes up those totals. A breakdown of notes
payable allows users to understand maturity dates, interest rates, and obligations.
This enhances transparency and decision usefulness.




Question 5

An independent audit report is typically issued by which of the following?

A. A corporate attorney
B. The company’s chief financial officer
C. A certified public accountant (CPA)
D. The Internal Revenue Service

Correct Answer: C. A certified public accountant (CPA)

, Rationale:
Independent audits must be conducted by licensed CPAs to ensure objectivity and
professional competence. CPAs follow established auditing standards when evaluating
financial statements. Their independence adds credibility to the financial information.
Company employees or government agencies do not issue independent audit
opinions.




Question 6

When auditors complete an audit of a company’s financial statements, they primarily:

A. Guarantee that the statements are perfectly accurate
B. Detect and prevent all fraud
C. Provide reasonable assurance that the statements are not misleading
D. Prepare the company’s tax return

Correct Answer: C. Provide reasonable assurance that the statements are
not misleading

Rationale:
Auditors do not guarantee absolute accuracy due to inherent limitations in auditing.
Instead, they provide reasonable assurance that financial statements are free from
material misstatement. This assurance increases users’ confidence in reported
information. Auditors also do not prepare tax returns as part of the audit process.




Question 7

Who bears primary responsibility for the accuracy of financial statement information?

A. External auditors
B. Management
C. Investors
D. Government regulators