WGUl C213l Finall Exam–l Accountingl forl
Decisionl Makerl Prepl (Latestl 2026/l 2027l
Update)l |l 100%l Verifiedl Questionsl &l
Answersl |l Gradel A
Q:l Thel financiall statementl thatl reportsl resourcesl owned,l thel obligationsl tol transferl
resourcesl tol otherl organizations,l andl thel claimsl byl thel entity'sl ownersl isl knownl asl the
Answer:
Balancel sheet
Q:l Thel ideal thatl thel activitiesl ofl thel entityl arel tol bel separatedl froml thosel ofl thel
individuall ownerl isl the
Answer:
Separatel entityl concept
Q:l Thel basicl accountingl equationl is
Answer:
Assetsl =l Liabilitiesl +l Owners'l Equity
Q:l Whichl ofl thel followingl wouldl bel includedl onl anl incomel statement?
Answer:
Rentl expense
Q:l Costsl thatl arel incurredl duringl thel normall operationsl ofl al businessl tol generatel
revenuesl arel called
,Answer:
Expenses
Q:l Anotherl namel forl thel incomel statementl is
Answer:
Statementl ofl earnings
Q:l Revenuesl cause
Answer:
Anl increasel inl netl assets
Q:l Thel financiall statementl thatl presentsl al summaryl ofl thel revenuesl andl expensesl ofl
al businessl forl al specificl periodl ofl time,l suchl asl al monthl orl al year,l isl calledl a(n)
Answer:
Incomel Statement
Q:l Whichl ofl thel followingl activitiesl wouldl NOTl bel classifiedl asl anl investingl
activity?
Answer:
Purchasel ofl inventory
Q:l Al majorl sourcel ofl cashl froml operatingl activitiesl is
Answer:
Receiptsl froml salel ofl goods
,Q:l Whichl ofl thel followingl classificationsl refersl tol thosel activitiesl associatedl withl
buyingl andl sellingl long-terml assets?
Answer:
Investing
Q:l Whichl ofl thel followingl classificationsl doesl NOTl appearl onl thel Statementl ofl Cashl
Flows?
Answer:
Borrowing
Q:l Vitall informationl thatl CANNOTl bel capturedl solelyl byl dollarl amountsl isl reportedl
inl al firm's
Answer:
Notesl tol financiall statements
Q:l Whichl ofl thel followingl isl NOTl onel ofl thel fourl generall typesl ofl financiall
statementl notes?
Answer:
Supplementaryl informationl requiredl byl thel Internall Revenuel Service
Q:l Whichl ofl thel followingl isl anl examplel ofl al significantl accountingl policyl thatl
wouldl bel explainedl inl thel notesl tol thel financiall statements?
Answer:
Thel methodl usedl tol estimatel depreciationl onl al piecel ofl equipment
Q:l Whichl ofl thel followingl isl anl examplel ofl al disclosurel ofl informationl NOTl
recognizedl thatl wouldl bel explainedl inl thel notesl tol thel financiall statements?
, Answer:
Thel disclosurel ofl thel uncertain,l potentiall outcomel ofl al lawsuit
Q:l Whichl ofl thel followingl isl anl examplel ofl additionall informationl aboutl summaryl
totalsl thatl wouldl bel explainedl inl thel notesl tol thel financiall statements?
Answer:
Thel descriptionl ofl alll thel individuall itemsl thatl comprisel notesl payable
Q:l Anl independentl auditl reportl isl usuallyl issuedl by
Answer:
Al certifiedl publicl accountant
Q:l Inl completingl anl auditl ofl al company'sl financiall statements,l auditors
Answer:
Providel somel assurancel thatl thel financiall statementsl arel notl misleading
Q:l Thel accuracyl ofl thel informationl containedl inl thel financiall statementsl isl thel
responsibilityl ofl the
Answer:
Management
Q:l Whichl ofl thel followingl arel thel twol economicl factorsl thatl enablel usl tol trustl anl
independentl auditorl despitel thel factl thatl thel auditorl wasl hiredl byl thel companyl beingl
audited?
Answer:
Reputationl ofl auditorl andl riskl ofl lawsuits
Decisionl Makerl Prepl (Latestl 2026/l 2027l
Update)l |l 100%l Verifiedl Questionsl &l
Answersl |l Gradel A
Q:l Thel financiall statementl thatl reportsl resourcesl owned,l thel obligationsl tol transferl
resourcesl tol otherl organizations,l andl thel claimsl byl thel entity'sl ownersl isl knownl asl the
Answer:
Balancel sheet
Q:l Thel ideal thatl thel activitiesl ofl thel entityl arel tol bel separatedl froml thosel ofl thel
individuall ownerl isl the
Answer:
Separatel entityl concept
Q:l Thel basicl accountingl equationl is
Answer:
Assetsl =l Liabilitiesl +l Owners'l Equity
Q:l Whichl ofl thel followingl wouldl bel includedl onl anl incomel statement?
Answer:
Rentl expense
Q:l Costsl thatl arel incurredl duringl thel normall operationsl ofl al businessl tol generatel
revenuesl arel called
,Answer:
Expenses
Q:l Anotherl namel forl thel incomel statementl is
Answer:
Statementl ofl earnings
Q:l Revenuesl cause
Answer:
Anl increasel inl netl assets
Q:l Thel financiall statementl thatl presentsl al summaryl ofl thel revenuesl andl expensesl ofl
al businessl forl al specificl periodl ofl time,l suchl asl al monthl orl al year,l isl calledl a(n)
Answer:
Incomel Statement
Q:l Whichl ofl thel followingl activitiesl wouldl NOTl bel classifiedl asl anl investingl
activity?
Answer:
Purchasel ofl inventory
Q:l Al majorl sourcel ofl cashl froml operatingl activitiesl is
Answer:
Receiptsl froml salel ofl goods
,Q:l Whichl ofl thel followingl classificationsl refersl tol thosel activitiesl associatedl withl
buyingl andl sellingl long-terml assets?
Answer:
Investing
Q:l Whichl ofl thel followingl classificationsl doesl NOTl appearl onl thel Statementl ofl Cashl
Flows?
Answer:
Borrowing
Q:l Vitall informationl thatl CANNOTl bel capturedl solelyl byl dollarl amountsl isl reportedl
inl al firm's
Answer:
Notesl tol financiall statements
Q:l Whichl ofl thel followingl isl NOTl onel ofl thel fourl generall typesl ofl financiall
statementl notes?
Answer:
Supplementaryl informationl requiredl byl thel Internall Revenuel Service
Q:l Whichl ofl thel followingl isl anl examplel ofl al significantl accountingl policyl thatl
wouldl bel explainedl inl thel notesl tol thel financiall statements?
Answer:
Thel methodl usedl tol estimatel depreciationl onl al piecel ofl equipment
Q:l Whichl ofl thel followingl isl anl examplel ofl al disclosurel ofl informationl NOTl
recognizedl thatl wouldl bel explainedl inl thel notesl tol thel financiall statements?
, Answer:
Thel disclosurel ofl thel uncertain,l potentiall outcomel ofl al lawsuit
Q:l Whichl ofl thel followingl isl anl examplel ofl additionall informationl aboutl summaryl
totalsl thatl wouldl bel explainedl inl thel notesl tol thel financiall statements?
Answer:
Thel descriptionl ofl alll thel individuall itemsl thatl comprisel notesl payable
Q:l Anl independentl auditl reportl isl usuallyl issuedl by
Answer:
Al certifiedl publicl accountant
Q:l Inl completingl anl auditl ofl al company'sl financiall statements,l auditors
Answer:
Providel somel assurancel thatl thel financiall statementsl arel notl misleading
Q:l Thel accuracyl ofl thel informationl containedl inl thel financiall statementsl isl thel
responsibilityl ofl the
Answer:
Management
Q:l Whichl ofl thel followingl arel thel twol economicl factorsl thatl enablel usl tol trustl anl
independentl auditorl despitel thel factl thatl thel auditorl wasl hiredl byl thel companyl beingl
audited?
Answer:
Reputationl ofl auditorl andl riskl ofl lawsuits
