2026 WGU C213 FINAL EXAM ACCOUNTING
FOR DECISION MAKERS ACTUAL
QUESTIONS AND VERIFIED ANSWERS,
100% GUARANTEE PASS
1. What is the primary purpose of financial accounting?
A) Internal planning and control
B) Providing useful information to external users such as
investors and creditors
C) Tax minimization strategies
D) Employee performance evaluation
Correct Answer : B
2. Bookkeeping primarily involves:
A) Interpreting financial data for decisions
B) Recording day-to-day financial transactions
C) Preparing audited financial statements
D) Forecasting future revenues
Correct Answer : B
,3. Which organization is primarily responsible for setting
Generally Accepted Accounting Principles (GAAP) in the United
States?
A) IRS
B) SEC
C) FASB
D) IASB
Correct Answer : C
4. The Sarbanes-Oxley Act primarily requires:
A) Small businesses to file quarterly reports
B) Public companies to strengthen internal controls over financial
reporting
C) Non-profits to use accrual accounting
D) All entities to follow IFRS
Correct Answer : B
5. The accounting equation is:
A) Assets = Liabilities + Revenue
B) Assets = Liabilities + Equity
C) Revenue - Expenses = Assets
,D) Equity = Assets - Revenue
Correct Answer : B
6. Which principle requires revenues to be recorded when earned,
not necessarily when cash is received?
A) Matching principle
B) Revenue recognition principle
C) Going concern principle
D) Historical cost principle
Correct Answer : B
7. Accrual basis accounting recognizes expenses:
A) When cash is paid
B) When incurred to generate revenue
C) At the end of the fiscal year only
D) Only if material
Correct Answer : B
8. Management accounting differs from financial accounting
because it is primarily used for:
, A) External reporting to shareholders
B) Internal decision-making, planning, and control
C) Tax return preparation
D) Government regulatory compliance
Correct Answer : B
9. Which is NOT one of the enhancing qualitative characteristics
of financial information?
A) Comparability
B) Verifiability
C) Timeliness
D) Profitability
Correct Answer : D
10. The economic entity assumption states that:
A) The business is separate from its owners
B) All businesses use the same currency
C) Assets must be profitable
D) Transactions are recorded at market value
FOR DECISION MAKERS ACTUAL
QUESTIONS AND VERIFIED ANSWERS,
100% GUARANTEE PASS
1. What is the primary purpose of financial accounting?
A) Internal planning and control
B) Providing useful information to external users such as
investors and creditors
C) Tax minimization strategies
D) Employee performance evaluation
Correct Answer : B
2. Bookkeeping primarily involves:
A) Interpreting financial data for decisions
B) Recording day-to-day financial transactions
C) Preparing audited financial statements
D) Forecasting future revenues
Correct Answer : B
,3. Which organization is primarily responsible for setting
Generally Accepted Accounting Principles (GAAP) in the United
States?
A) IRS
B) SEC
C) FASB
D) IASB
Correct Answer : C
4. The Sarbanes-Oxley Act primarily requires:
A) Small businesses to file quarterly reports
B) Public companies to strengthen internal controls over financial
reporting
C) Non-profits to use accrual accounting
D) All entities to follow IFRS
Correct Answer : B
5. The accounting equation is:
A) Assets = Liabilities + Revenue
B) Assets = Liabilities + Equity
C) Revenue - Expenses = Assets
,D) Equity = Assets - Revenue
Correct Answer : B
6. Which principle requires revenues to be recorded when earned,
not necessarily when cash is received?
A) Matching principle
B) Revenue recognition principle
C) Going concern principle
D) Historical cost principle
Correct Answer : B
7. Accrual basis accounting recognizes expenses:
A) When cash is paid
B) When incurred to generate revenue
C) At the end of the fiscal year only
D) Only if material
Correct Answer : B
8. Management accounting differs from financial accounting
because it is primarily used for:
, A) External reporting to shareholders
B) Internal decision-making, planning, and control
C) Tax return preparation
D) Government regulatory compliance
Correct Answer : B
9. Which is NOT one of the enhancing qualitative characteristics
of financial information?
A) Comparability
B) Verifiability
C) Timeliness
D) Profitability
Correct Answer : D
10. The economic entity assumption states that:
A) The business is separate from its owners
B) All businesses use the same currency
C) Assets must be profitable
D) Transactions are recorded at market value
