WGU C213 Accounting for Decision Makers
Objective Assessment: 200 Practice Questions &
Study Guide |Latest Update This Year Pdf Instant
Download Pdf
Exam Overview
The WGU C213 – Accounting for Decision Makers objective assessment (OA) is the
final, proctored exam for the course that bridges financial and managerial accounting
concepts for effective business decision-making. The course covers 5 competencies and
represents 3 competency units.
Exam Details at a Glance:
Aspect Detail
Course C213 Accounting for Decision Makers
Institution Western Governors University (WGU)
Format Proctored multiple-choice objective assessment
Competencies 5 (Financial Analysis, Controls & Regulations, Cost Systems, Profit
Planning, Budgeting)
Calculator Texas Instruments BA-II Plus (approved)
Comprehensive Yes – all assigned content is essential for the OA
Core Competencies Covered
Competency 3014.1.1: Financial Analysis
Analyzes financial statements to evaluate company performance and make
recommendations.
Key Topics:
Nature and purpose of accounting
, Three financial statements (Balance Sheet, Income Statement, Statement of Cash
Flows)
Users of financial statements
U.S. accounting rules and origins (GAAP, FASB, SEC)
Accounting equation (Assets = Liabilities + Equity)
Financial statement analysis and ratio calculations
Concepts: comparability, conservatism, materiality, articulation
Competency 3014.1.2: Controls and Regulations
Analyzes internal corporate controls for adequacy and compliance with legal/regulatory
requirements.
Key Topics:
Common financial statement errors
Internal controls to prevent fraud/accidental loss
Earnings management motivations and techniques
Sarbanes-Oxley Act (SOX) effect on financial reporting
Role of auditors and impact on financial statement integrity
Competency 3014.1.3: Cost Systems
Uses economic cost concepts and activity-based costing (ABC) data to make cost-based
decisions.
Key Topics:
Economic cost concepts
Activity-based costing (ABC)
Cost-based decision making
Competency 3014.1.4: Profit Planning
Uses cost-volume-profit concepts and applies analytical tools to improve company profit
potential.
Key Topics:
, Cost-volume-profit (CVP) analysis
Break-even analysis
Profit improvement strategies
Competency 3014.1.5: Budgeting
Uses budgeting tools for planning and control purposes, including analyzing cash flows to
ensure adequacy of funds.
Key Topics:
Budgeting tools for planning and control
Cash flow analysis
Cash collections and payment calculations based on policy
Practice Questions: Financial Accounting & Reporting
1. What is the fundamental purpose of the balance sheet in financial reporting?
A) To show revenues and expenses over a period
B) To report the company's financial position at a specific point in time
C) To detail cash inflows and outflows
D) To allocate costs to products
Rationale: The balance sheet presents assets, liabilities, and equity, reflecting the
accounting equation (Assets = Liabilities + Equity). This snapshot aids stakeholders in
assessing solvency and liquidity.
2. Under accrual accounting, when are revenues recognized?
A) When cash is received from the customer
B) When the revenue is earned and realizable
C) At the end of the fiscal year
D) When the product is shipped
, Rationale: The revenue recognition principle ensures matching with expenses, providing
accurate period performance. Revenue is recognized when value has been delivered to
customers, not before or after.
3. The matching principle requires that expenses be matched with:
A) The period in which they are paid
B) The revenues they help generate
C) Fixed assets only
D) Inventory costs
Rationale: This principle allocates costs to the periods benefiting from the associated
revenue generation, ensuring accurate profitability measurement and compliance with
GAAP.
4. What is the role of adjusting entries in the accounting cycle?
A) To record daily transactions
B) To update accounts for accruals, deferrals, and estimates at period-end
C) To close temporary accounts to equity
D) To prepare tax schedules
Rationale: Adjusting entries ensure accrual basis accuracy, such as accruing wages or
depreciating assets, transforming the unadjusted trial balance into adjusted for statement
preparation.
5. The trial balance serves to:
A) Calculate net income
B) Verify that total debits equal total credits
C) Adjust for inventory shrinkage
D) Compute tax liabilities
Objective Assessment: 200 Practice Questions &
Study Guide |Latest Update This Year Pdf Instant
Download Pdf
Exam Overview
The WGU C213 – Accounting for Decision Makers objective assessment (OA) is the
final, proctored exam for the course that bridges financial and managerial accounting
concepts for effective business decision-making. The course covers 5 competencies and
represents 3 competency units.
Exam Details at a Glance:
Aspect Detail
Course C213 Accounting for Decision Makers
Institution Western Governors University (WGU)
Format Proctored multiple-choice objective assessment
Competencies 5 (Financial Analysis, Controls & Regulations, Cost Systems, Profit
Planning, Budgeting)
Calculator Texas Instruments BA-II Plus (approved)
Comprehensive Yes – all assigned content is essential for the OA
Core Competencies Covered
Competency 3014.1.1: Financial Analysis
Analyzes financial statements to evaluate company performance and make
recommendations.
Key Topics:
Nature and purpose of accounting
, Three financial statements (Balance Sheet, Income Statement, Statement of Cash
Flows)
Users of financial statements
U.S. accounting rules and origins (GAAP, FASB, SEC)
Accounting equation (Assets = Liabilities + Equity)
Financial statement analysis and ratio calculations
Concepts: comparability, conservatism, materiality, articulation
Competency 3014.1.2: Controls and Regulations
Analyzes internal corporate controls for adequacy and compliance with legal/regulatory
requirements.
Key Topics:
Common financial statement errors
Internal controls to prevent fraud/accidental loss
Earnings management motivations and techniques
Sarbanes-Oxley Act (SOX) effect on financial reporting
Role of auditors and impact on financial statement integrity
Competency 3014.1.3: Cost Systems
Uses economic cost concepts and activity-based costing (ABC) data to make cost-based
decisions.
Key Topics:
Economic cost concepts
Activity-based costing (ABC)
Cost-based decision making
Competency 3014.1.4: Profit Planning
Uses cost-volume-profit concepts and applies analytical tools to improve company profit
potential.
Key Topics:
, Cost-volume-profit (CVP) analysis
Break-even analysis
Profit improvement strategies
Competency 3014.1.5: Budgeting
Uses budgeting tools for planning and control purposes, including analyzing cash flows to
ensure adequacy of funds.
Key Topics:
Budgeting tools for planning and control
Cash flow analysis
Cash collections and payment calculations based on policy
Practice Questions: Financial Accounting & Reporting
1. What is the fundamental purpose of the balance sheet in financial reporting?
A) To show revenues and expenses over a period
B) To report the company's financial position at a specific point in time
C) To detail cash inflows and outflows
D) To allocate costs to products
Rationale: The balance sheet presents assets, liabilities, and equity, reflecting the
accounting equation (Assets = Liabilities + Equity). This snapshot aids stakeholders in
assessing solvency and liquidity.
2. Under accrual accounting, when are revenues recognized?
A) When cash is received from the customer
B) When the revenue is earned and realizable
C) At the end of the fiscal year
D) When the product is shipped
, Rationale: The revenue recognition principle ensures matching with expenses, providing
accurate period performance. Revenue is recognized when value has been delivered to
customers, not before or after.
3. The matching principle requires that expenses be matched with:
A) The period in which they are paid
B) The revenues they help generate
C) Fixed assets only
D) Inventory costs
Rationale: This principle allocates costs to the periods benefiting from the associated
revenue generation, ensuring accurate profitability measurement and compliance with
GAAP.
4. What is the role of adjusting entries in the accounting cycle?
A) To record daily transactions
B) To update accounts for accruals, deferrals, and estimates at period-end
C) To close temporary accounts to equity
D) To prepare tax schedules
Rationale: Adjusting entries ensure accrual basis accuracy, such as accruing wages or
depreciating assets, transforming the unadjusted trial balance into adjusted for statement
preparation.
5. The trial balance serves to:
A) Calculate net income
B) Verify that total debits equal total credits
C) Adjust for inventory shrinkage
D) Compute tax liabilities
