WGU C213 ACCOUNTING FOR DECISION
MAKERS 2026 PRE-ASSESSMENT LATEST
EXAM WITH QUESTIONS AND CORRECT
ANSWERS GUARANTEEING 100% PASS
1. Which body regulates a certified public accounting firm's
audit practices when the firm is auditing a large publicly
traded company?
O Another certified accounting firm (CPA)
O The Public Company Accounting Oversight Board
(PCAOB)
O The internal revenue service (IRS)
O The financial accounting standards board (FASB)
O The Public Company Accounting Oversight Board (PCAOB)
2. What has had the most significant impact on accounting
practices?
O New product innovations
O Mobile computing
O Certification requirements
O Information Technology
O Information Technology
3. What two items of information are revealed on the balance
sheet?
,Choose 2 answers
O Costs
O Revenues
O Debt
O Expenses
O Ownership
O Debt
O Ownership
4. Which term is defined as the residual interest in the net
assets of a company?
O Owner's Equity
O Revenues
O Operating Income
O Liabilities
O Owner's Equity
5. A corporation has total liabilities of $300 million, total
owners' equity of $100 million, and current assets of $50
million.
What is the value of the firm's long-term assets?
O $250 million
O $350 million
O $400 million
O $450 million
,Assets = Liabilities + Equity
x + 50m = 300m + 100m
Solving for x = 350m
O $350 million
6. Which situation should result in revenue recognition on
the income statement for the year ending 12/31/14 if the firm
is using accrual-basis accounting?
O In 2014, a company collects cash from a customer for
services it will provide next year (2015)
O In 2014, a company collects cash from a customer for
services it provided in the previous year (2013)
O In 2014, a company enters into a contract whereby it
agrees to provide services to a customer next year in (2015)
O In 2014, a company provide services to a customer for
cash will be collected the next year (2015)
O In 2014, a company provide services to a customer for cash will
be collected the next year (2015)
7. Which category on the statement of cash flows
summarizes cash receipts and payments to owners and
creditors of the company?
O Cash flows from business activities
O Cash flows from financing activities
O Cash flows from investing activities
O Cash flows from operating activities
O Cash flows from financing activities
, 8. Where would an investor find a summary of a company's
significant accounting policies?
O In the income statement
O In the balance sheet
O In the statement of cash flows
O In the notes to financial statement
O In the notes to financial statement
9. Which assurance does an external audit report provide for
its readers?
O The company will be a good credit risk
O The company's financial statement fairly reflecst it
financial position
O The company will generate positive cash flows
O The company will generate net income
O The company's financial statement fairly reflects it financial
position
10. Match each accounting term with its definition.
Answer options may be used more than once or not at all.
Conservatism
Material
Reliable
Relevant
Information having to do with the matter at hand
Information related to recognizing losses as they occur
MAKERS 2026 PRE-ASSESSMENT LATEST
EXAM WITH QUESTIONS AND CORRECT
ANSWERS GUARANTEEING 100% PASS
1. Which body regulates a certified public accounting firm's
audit practices when the firm is auditing a large publicly
traded company?
O Another certified accounting firm (CPA)
O The Public Company Accounting Oversight Board
(PCAOB)
O The internal revenue service (IRS)
O The financial accounting standards board (FASB)
O The Public Company Accounting Oversight Board (PCAOB)
2. What has had the most significant impact on accounting
practices?
O New product innovations
O Mobile computing
O Certification requirements
O Information Technology
O Information Technology
3. What two items of information are revealed on the balance
sheet?
,Choose 2 answers
O Costs
O Revenues
O Debt
O Expenses
O Ownership
O Debt
O Ownership
4. Which term is defined as the residual interest in the net
assets of a company?
O Owner's Equity
O Revenues
O Operating Income
O Liabilities
O Owner's Equity
5. A corporation has total liabilities of $300 million, total
owners' equity of $100 million, and current assets of $50
million.
What is the value of the firm's long-term assets?
O $250 million
O $350 million
O $400 million
O $450 million
,Assets = Liabilities + Equity
x + 50m = 300m + 100m
Solving for x = 350m
O $350 million
6. Which situation should result in revenue recognition on
the income statement for the year ending 12/31/14 if the firm
is using accrual-basis accounting?
O In 2014, a company collects cash from a customer for
services it will provide next year (2015)
O In 2014, a company collects cash from a customer for
services it provided in the previous year (2013)
O In 2014, a company enters into a contract whereby it
agrees to provide services to a customer next year in (2015)
O In 2014, a company provide services to a customer for
cash will be collected the next year (2015)
O In 2014, a company provide services to a customer for cash will
be collected the next year (2015)
7. Which category on the statement of cash flows
summarizes cash receipts and payments to owners and
creditors of the company?
O Cash flows from business activities
O Cash flows from financing activities
O Cash flows from investing activities
O Cash flows from operating activities
O Cash flows from financing activities
, 8. Where would an investor find a summary of a company's
significant accounting policies?
O In the income statement
O In the balance sheet
O In the statement of cash flows
O In the notes to financial statement
O In the notes to financial statement
9. Which assurance does an external audit report provide for
its readers?
O The company will be a good credit risk
O The company's financial statement fairly reflecst it
financial position
O The company will generate positive cash flows
O The company will generate net income
O The company's financial statement fairly reflects it financial
position
10. Match each accounting term with its definition.
Answer options may be used more than once or not at all.
Conservatism
Material
Reliable
Relevant
Information having to do with the matter at hand
Information related to recognizing losses as they occur
