WGU C213 TOPICS 1-6 QUIZZES 2026
(51% OF EXAM COMPETENCIES)
QUESTIONS & VERIFIED CORRECT
ANSWERS
The emphasis in financial accounting is on which of the following external user groups?
- Correct Answer ✔✔ Investors and creditors
The primary internal group that uses accounting information is? - Correct Answer ✔✔
Management
Internal reports are generally used by? - Correct Answer ✔✔ Management
Which of the following is NOT an external user of financial information? - Correct
Answer ✔✔ Management
Which of the following is NOT true of the Financial Accounting Standards Board
(FASB)? - Correct Answer ✔✔ It is a government agency
Generally accepted accounting principles are? - Correct Answer ✔✔ Developed by
accounting rule makers
The initials GAAP stand for? - Correct Answer ✔✔ Generally Accepted Accounting
Principles
The current standard-setting board for accounting in the private sector is the? - Correct
Answer ✔✔ Financial Accounting Standards Board (FASB)
Which of the following is the government agency that stipulates the rules and
regulations that govern the collection of taxes in the United States? - Correct Answer
✔✔ Internal Revenue Service
The organization that develops worldwide accounting standards is the? - Correct
Answer ✔✔ International Accounting Standards Board (IASB)
Standards established by the International Accounting Standards Board are referred to
as? - Correct Answer ✔✔ International Financial Accounting Standards
Which of the following is NOT a service typically provided by large public accounting
firms? - Correct Answer ✔✔ Making management decisions
,Which of the following organizations has specific legal authority to establish accounting
standards for publicly held companies? - Correct Answer ✔✔ Securities and Exchange
Commission (SEC)
Which of the following is NOT a reason for the integration of worldwide accounting
standards? - Correct Answer ✔✔ The theoretical necessity of a common set of
accounting standards
The International Accounting Standards Board (IASB) is charged with developing
worldwide accounting practices? True or False? - Correct Answer ✔✔ True
With the current state of information technology, investors outside a company are now
allowed access to a company's internal database of financial information and do their
own customized analysis of a firm's performance. True or False? - Correct Answer ✔✔
False
While the technology may be available, companies are still not allowing outsiders
access to their internal accounting records. True or False? - Correct Answer ✔✔ True
Increased federal oversight of the audit process resulted from the passage of the
following act of Congress - - Correct Answer ✔✔ Sarbanes-Oxley Act
A borrower benefits from providing financial information regarding income and expenses
in the form of a lower interest rate on the loan because of reduced uncertainty for the
lender with regard to repayment. True or False? - Correct Answer ✔✔ True
Which of the following is NOT one of the three primary financial statements? - Correct
Answer ✔✔ The Statement of Retained Earnings
One reason for a company's preparing and providing financial statements is to reduce
uncertainty for an investor regarding the firm's future financial performance. True or
False? - Correct Answer ✔✔ True
Which of the following distinguishes between current and long-term assets? - Correct
Answer ✔✔ Classified balance sheet
Which of the following financial statements provides a picture of the enterprise at a
particular point in time? - Correct Answer ✔✔ Balance sheet
Which of the following is the reason that the accounting equation is true by definition? -
Correct Answer ✔✔ Liabilities and owner's equity are the sources that fund the
purchase of assets
The idea that businesses must be accounted for as though they will exist at least for the
forseeable future is the? - Correct Answer ✔✔ Going concern concept
, Revenues cause? - Correct Answer ✔✔ An increase in net assets
Which of the following is an overall measure of the performance of a business entity's
activities? - Correct Answer ✔✔ Net income (or net loss)
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)? -
Correct Answer ✔✔ Income Statement
Which of the following would be included on an income statement? - Correct Answer
✔✔ Rent expense
Another name for the income statement is? - Correct Answer ✔✔ Statement of earnings
Which of the following classification does NOT appear on the Statement of Cash Flows?
- Correct Answer ✔✔ Borrowing
Which of the following classifications refers to those activities whereby cash is obtained
or repaid to owners and creditors? - Correct Answer ✔✔ Financing
Which of the following activities would NOT be classified as an investing activity? -
Correct Answer ✔✔ Purchase of inventory
Which of the following activities would be classified as a financing activity? - Correct
Answer ✔✔ Repayment of a loan
Vital information that CANNOT be captured solely by dollar amounts is reported in a
firm's... - Correct Answer ✔✔ Notes to financial statements
Which of the following is NOT one of the four general types of financial statement
notes? - Correct Answer ✔✔ Supplementary information required by the Internal
Revenue Service
Which of the following is an example of a significant accounting policy that would be
explained in the notes to the financial statements? - Correct Answer ✔✔ The method
used to estimate depreciation on a piece of equipment
Which of the following is an example of a disclosure of information NOT recognized that
would be explained in the notes to the financial statements? - Correct Answer ✔✔ The
disclosure of the uncertain, potential outcome of a lawsuit
Which of the following is an example of additional information about summary totals that
would be explained in the notes to the financial statements? - Correct Answer ✔✔ The
description of all the individual items that comprise notes payable
(51% OF EXAM COMPETENCIES)
QUESTIONS & VERIFIED CORRECT
ANSWERS
The emphasis in financial accounting is on which of the following external user groups?
- Correct Answer ✔✔ Investors and creditors
The primary internal group that uses accounting information is? - Correct Answer ✔✔
Management
Internal reports are generally used by? - Correct Answer ✔✔ Management
Which of the following is NOT an external user of financial information? - Correct
Answer ✔✔ Management
Which of the following is NOT true of the Financial Accounting Standards Board
(FASB)? - Correct Answer ✔✔ It is a government agency
Generally accepted accounting principles are? - Correct Answer ✔✔ Developed by
accounting rule makers
The initials GAAP stand for? - Correct Answer ✔✔ Generally Accepted Accounting
Principles
The current standard-setting board for accounting in the private sector is the? - Correct
Answer ✔✔ Financial Accounting Standards Board (FASB)
Which of the following is the government agency that stipulates the rules and
regulations that govern the collection of taxes in the United States? - Correct Answer
✔✔ Internal Revenue Service
The organization that develops worldwide accounting standards is the? - Correct
Answer ✔✔ International Accounting Standards Board (IASB)
Standards established by the International Accounting Standards Board are referred to
as? - Correct Answer ✔✔ International Financial Accounting Standards
Which of the following is NOT a service typically provided by large public accounting
firms? - Correct Answer ✔✔ Making management decisions
,Which of the following organizations has specific legal authority to establish accounting
standards for publicly held companies? - Correct Answer ✔✔ Securities and Exchange
Commission (SEC)
Which of the following is NOT a reason for the integration of worldwide accounting
standards? - Correct Answer ✔✔ The theoretical necessity of a common set of
accounting standards
The International Accounting Standards Board (IASB) is charged with developing
worldwide accounting practices? True or False? - Correct Answer ✔✔ True
With the current state of information technology, investors outside a company are now
allowed access to a company's internal database of financial information and do their
own customized analysis of a firm's performance. True or False? - Correct Answer ✔✔
False
While the technology may be available, companies are still not allowing outsiders
access to their internal accounting records. True or False? - Correct Answer ✔✔ True
Increased federal oversight of the audit process resulted from the passage of the
following act of Congress - - Correct Answer ✔✔ Sarbanes-Oxley Act
A borrower benefits from providing financial information regarding income and expenses
in the form of a lower interest rate on the loan because of reduced uncertainty for the
lender with regard to repayment. True or False? - Correct Answer ✔✔ True
Which of the following is NOT one of the three primary financial statements? - Correct
Answer ✔✔ The Statement of Retained Earnings
One reason for a company's preparing and providing financial statements is to reduce
uncertainty for an investor regarding the firm's future financial performance. True or
False? - Correct Answer ✔✔ True
Which of the following distinguishes between current and long-term assets? - Correct
Answer ✔✔ Classified balance sheet
Which of the following financial statements provides a picture of the enterprise at a
particular point in time? - Correct Answer ✔✔ Balance sheet
Which of the following is the reason that the accounting equation is true by definition? -
Correct Answer ✔✔ Liabilities and owner's equity are the sources that fund the
purchase of assets
The idea that businesses must be accounted for as though they will exist at least for the
forseeable future is the? - Correct Answer ✔✔ Going concern concept
, Revenues cause? - Correct Answer ✔✔ An increase in net assets
Which of the following is an overall measure of the performance of a business entity's
activities? - Correct Answer ✔✔ Net income (or net loss)
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)? -
Correct Answer ✔✔ Income Statement
Which of the following would be included on an income statement? - Correct Answer
✔✔ Rent expense
Another name for the income statement is? - Correct Answer ✔✔ Statement of earnings
Which of the following classification does NOT appear on the Statement of Cash Flows?
- Correct Answer ✔✔ Borrowing
Which of the following classifications refers to those activities whereby cash is obtained
or repaid to owners and creditors? - Correct Answer ✔✔ Financing
Which of the following activities would NOT be classified as an investing activity? -
Correct Answer ✔✔ Purchase of inventory
Which of the following activities would be classified as a financing activity? - Correct
Answer ✔✔ Repayment of a loan
Vital information that CANNOT be captured solely by dollar amounts is reported in a
firm's... - Correct Answer ✔✔ Notes to financial statements
Which of the following is NOT one of the four general types of financial statement
notes? - Correct Answer ✔✔ Supplementary information required by the Internal
Revenue Service
Which of the following is an example of a significant accounting policy that would be
explained in the notes to the financial statements? - Correct Answer ✔✔ The method
used to estimate depreciation on a piece of equipment
Which of the following is an example of a disclosure of information NOT recognized that
would be explained in the notes to the financial statements? - Correct Answer ✔✔ The
disclosure of the uncertain, potential outcome of a lawsuit
Which of the following is an example of additional information about summary totals that
would be explained in the notes to the financial statements? - Correct Answer ✔✔ The
description of all the individual items that comprise notes payable
