WGU C213 FINAL EXAM ACCOUNTING FOR
DECISION MAKERS 2026 VERIFIED QUESTIONS
AND DETAILED SOLUTIONS
◉ Net Income. Answer: income from continuing operations plus or
minus the results of discontinued operations and extraordinary
items, net of their respective income tax effects
◉ Comprehensive Income. Answer: net income plus or minus
adjustments for changes in company wealth stemming from changes
in certain exchange rates, interest rates, or financial instruments'
values
◉ Gains, Losses, Revenues, and Expenses. Answer: What are the 4
primary item categories listed on the income statement?
◉ selling goods, providing services, Earning interest by providing
loans. Answer: What are some common business activities that
generate revenue?
◉ cost of goods sold; selling, general, and administrative expense,
depreciation expense, income tax expense, and interest expense.
Answer: What are the key expense items commonly found on the
income statement?
,◉ External. Answer: Do gains/losses reported on the income
statement arise from internal or external activities?
◉ Income from discontinued operations and extraordinary items.
Answer: Which items are considered "below-the-line" items?
◉ Earnings per Share (EPS). Answer: the amount of net income
associated with each share of stock
◉ When value has been delivered to customers (typically only after
the required work has been performed and after the collection of
cash is reasonably assured). Answer: When should revenue be
recognized on an income statement?
◉ matching. Answer: the concept that states that an expense should
be recognized in the same period in which the revenue it was used
to generate is recognized
◉ Balance Sheet. Answer: Which of the following financial
statements reports a company's resources, obligations, and owner's
equity?
, ◉ Income Statement. Answer: Which of the following financial
statements reports the excess of a company's revenues over its
expenses?
◉ Management. Answer: Which of the following is NOT an external
user of financial information?
◉ International Accounting Standards Board (IASB). Answer: The
organization that develops worldwide accounting standards is the
◉ It identifies a company's assets and liabilities as of a specific date..
Answer: Which of the following is true of the balance sheet?
◉ The idea that businesses must be accounted for as though they
will exist at least for the foreseeable future is the. Answer: Going
concern concept
◉ Income Statement. Answer: The financial statement that presents
a summary of the revenues and expenses of a business for a specific
period of time, such as a month or a year, is called a(n)
◉ Price-Earnings Ratio. Answer: Which of the following ratios
represents an indication of investors' expectations concerning a
firm's growth potential?
DECISION MAKERS 2026 VERIFIED QUESTIONS
AND DETAILED SOLUTIONS
◉ Net Income. Answer: income from continuing operations plus or
minus the results of discontinued operations and extraordinary
items, net of their respective income tax effects
◉ Comprehensive Income. Answer: net income plus or minus
adjustments for changes in company wealth stemming from changes
in certain exchange rates, interest rates, or financial instruments'
values
◉ Gains, Losses, Revenues, and Expenses. Answer: What are the 4
primary item categories listed on the income statement?
◉ selling goods, providing services, Earning interest by providing
loans. Answer: What are some common business activities that
generate revenue?
◉ cost of goods sold; selling, general, and administrative expense,
depreciation expense, income tax expense, and interest expense.
Answer: What are the key expense items commonly found on the
income statement?
,◉ External. Answer: Do gains/losses reported on the income
statement arise from internal or external activities?
◉ Income from discontinued operations and extraordinary items.
Answer: Which items are considered "below-the-line" items?
◉ Earnings per Share (EPS). Answer: the amount of net income
associated with each share of stock
◉ When value has been delivered to customers (typically only after
the required work has been performed and after the collection of
cash is reasonably assured). Answer: When should revenue be
recognized on an income statement?
◉ matching. Answer: the concept that states that an expense should
be recognized in the same period in which the revenue it was used
to generate is recognized
◉ Balance Sheet. Answer: Which of the following financial
statements reports a company's resources, obligations, and owner's
equity?
, ◉ Income Statement. Answer: Which of the following financial
statements reports the excess of a company's revenues over its
expenses?
◉ Management. Answer: Which of the following is NOT an external
user of financial information?
◉ International Accounting Standards Board (IASB). Answer: The
organization that develops worldwide accounting standards is the
◉ It identifies a company's assets and liabilities as of a specific date..
Answer: Which of the following is true of the balance sheet?
◉ The idea that businesses must be accounted for as though they
will exist at least for the foreseeable future is the. Answer: Going
concern concept
◉ Income Statement. Answer: The financial statement that presents
a summary of the revenues and expenses of a business for a specific
period of time, such as a month or a year, is called a(n)
◉ Price-Earnings Ratio. Answer: Which of the following ratios
represents an indication of investors' expectations concerning a
firm's growth potential?
