WGU C213 ACCOUNTING FOR DECISION
MAKERS OBJECTIVE ASSESSMENT EXAM
2026/2027 COMPLETE PRACTICE QUESTIONS
WITH VERIFIED ANSWERS AND RATIONALES
GRADED A+ JUST RELEASED
TABLE OF CONTENTS
| 1 | Financial Accounting Principles and GAAP | 1 to 25 |
| 2 | Financial Statements Balance Sheet Income Statement Cash Flows |
26 to 55 |
| 3 | Financial Statement Analysis and Ratios | 56 to 75 |
| 4 | Internal Controls and Regulations | 76 to 90 |
| 5 | Managerial Accounting and Cost Concepts | 91 to 105 |
| 6 | Cost-Volume-Profit Analysis | 106 to 120 |
| 7 | Budgeting and Profit Planning | 121 to 135 |
| 8 | Activity-Based Costing | 136 to 145 |
| 9 | Capital Investment Decisions and Time Value of Money | 146 to 160
|
,SECTION 1: FINANCIAL ACCOUNTING PRINCIPLES AND GAAP
Question 1
Which of the following is the basic accounting equation
A. Assets = Liabilities + Owner's Equity
B. Assets = Liabilities - Owner's Equity
C. Assets + Liabilities = Owner's Equity
D. Assets = Revenues - Expenses
Correct Answer A
Rationale The basic accounting equation is Assets = Liabilities +
Owner's Equity. This equation must always balance and is the
foundation of double-entry accounting. Owner's Equity includes
investments by owners and retained earnings . The equation can also be
expressed as Assets - Liabilities = Owner's Equity.
Question 2
Which financial statement reports a company's financial position at a
specific point in time
,A. Income Statement
B. Statement of Cash Flows
C. Balance Sheet
D. Statement of Retained Earnings
Correct Answer C
Rationale The Balance Sheet reports a company's financial position,
including assets, liabilities, and equity, at a specific point in time or as of
a specific date. The Income Statement reports performance over a period
of time. The Statement of Cash Flows reports cash movements over a
period. The Statement of Retained Earnings reports changes in retained
earnings over a period.
Question 3
Which accounting principle requires that revenues be recognized when
earned regardless of when cash is received
A. Matching Principle
B. Revenue Recognition Principle
C. Cost Principle
D. Consistency Principle
Correct Answer B
, Rationale The Revenue Recognition Principle states that revenues
should be recognized when they are earned, when goods or services are
provided, regardless of when cash is received. This is a key principle of
accrual accounting . The Matching Principle requires expenses to be
matched with revenues in the same period.
Question 4
Which accounting principle requires that expenses be matched with
revenues in the same period
A. Revenue Recognition Principle
B. Matching Principle
C. Cost Principle
D. Consistency Principle
Correct Answer B
Rationale The Matching Principle requires that expenses be matched
with revenues in the same accounting period. This ensures that net
income is accurately calculated. For example, cost of goods sold is
matched with the revenue from the sale . This is a fundamental principle
of accrual accounting.
Question 5
MAKERS OBJECTIVE ASSESSMENT EXAM
2026/2027 COMPLETE PRACTICE QUESTIONS
WITH VERIFIED ANSWERS AND RATIONALES
GRADED A+ JUST RELEASED
TABLE OF CONTENTS
| 1 | Financial Accounting Principles and GAAP | 1 to 25 |
| 2 | Financial Statements Balance Sheet Income Statement Cash Flows |
26 to 55 |
| 3 | Financial Statement Analysis and Ratios | 56 to 75 |
| 4 | Internal Controls and Regulations | 76 to 90 |
| 5 | Managerial Accounting and Cost Concepts | 91 to 105 |
| 6 | Cost-Volume-Profit Analysis | 106 to 120 |
| 7 | Budgeting and Profit Planning | 121 to 135 |
| 8 | Activity-Based Costing | 136 to 145 |
| 9 | Capital Investment Decisions and Time Value of Money | 146 to 160
|
,SECTION 1: FINANCIAL ACCOUNTING PRINCIPLES AND GAAP
Question 1
Which of the following is the basic accounting equation
A. Assets = Liabilities + Owner's Equity
B. Assets = Liabilities - Owner's Equity
C. Assets + Liabilities = Owner's Equity
D. Assets = Revenues - Expenses
Correct Answer A
Rationale The basic accounting equation is Assets = Liabilities +
Owner's Equity. This equation must always balance and is the
foundation of double-entry accounting. Owner's Equity includes
investments by owners and retained earnings . The equation can also be
expressed as Assets - Liabilities = Owner's Equity.
Question 2
Which financial statement reports a company's financial position at a
specific point in time
,A. Income Statement
B. Statement of Cash Flows
C. Balance Sheet
D. Statement of Retained Earnings
Correct Answer C
Rationale The Balance Sheet reports a company's financial position,
including assets, liabilities, and equity, at a specific point in time or as of
a specific date. The Income Statement reports performance over a period
of time. The Statement of Cash Flows reports cash movements over a
period. The Statement of Retained Earnings reports changes in retained
earnings over a period.
Question 3
Which accounting principle requires that revenues be recognized when
earned regardless of when cash is received
A. Matching Principle
B. Revenue Recognition Principle
C. Cost Principle
D. Consistency Principle
Correct Answer B
, Rationale The Revenue Recognition Principle states that revenues
should be recognized when they are earned, when goods or services are
provided, regardless of when cash is received. This is a key principle of
accrual accounting . The Matching Principle requires expenses to be
matched with revenues in the same period.
Question 4
Which accounting principle requires that expenses be matched with
revenues in the same period
A. Revenue Recognition Principle
B. Matching Principle
C. Cost Principle
D. Consistency Principle
Correct Answer B
Rationale The Matching Principle requires that expenses be matched
with revenues in the same accounting period. This ensures that net
income is accurately calculated. For example, cost of goods sold is
matched with the revenue from the sale . This is a fundamental principle
of accrual accounting.
Question 5
