LATEST WGU C213 ACCOUNTING FOR
DECISION MAKERS EXAM /
ACCOUNTING FOR DECISION MAKERS
WGU C213 FINAL EXAM 2026/2027
TESTBANK AND STUDY GUIDE
COMPLETE ACCURATE EXAM REAL
QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES (100%
CORRECT VERIFIED SOLUTIONS)
CURRENTLY UPDATED VERSION 2026
EDITION GUARANTEED PASS A+
(BRAND NEW!) FULL REVISED EXAM
JUST RELEASED
1. Which financial statement reports a company's financial position
at a specific point in time?
A) Income statement
B) Statement of cash flows
C) Statement of retained earnings
D) Balance sheet
Correct Answer: D) Balance sheet
,Rationale: The balance sheet provides a snapshot of a company's assets,
liabilities, and equity at a specific date. Unlike the income statement,
which covers a period of time, the balance sheet represents the financial
position on a particular day, such as December 31st. This is a
fundamental concept in financial reporting.
2. The accounting equation is:
A) Assets = Liabilities + Equity
B) Assets + Liabilities = Equity
C) Revenues − Expenses = Net Income
D) Assets = Revenues − Expenses
Correct Answer: A) Assets = Liabilities + Equity
Rationale: This is the fundamental accounting equation that forms the
basis of the double-entry accounting system. It demonstrates that a
company's assets are financed either by borrowing (liabilities) or by
owner investment and retained earnings (equity). This equation must
always balance.
3. Which of the following is classified as an asset?
A) Accounts payable
B) Notes payable
C) Common stock
D) Inventory
Correct Answer: D) Inventory
Rationale: Assets are resources owned by a company that provide
future economic benefit. Inventory, which consists of goods held for
,sale, meets this definition. Accounts payable and notes payable are
liabilities, and common stock is an equity account.
4. Which of the following is classified as a liability?
A) Cash
B) Equipment
C) Accounts receivable
D) Wages payable
Correct Answer: D) Wages payable
Rationale: Liabilities represent obligations owed to others. Wages
payable is an amount owed to employees for work performed, making it
a liability. Cash and accounts receivable are assets, and equipment is a
long-term asset.
5. Retained earnings is classified as which type of account?
A) Asset
B) Liability
C) Equity
D) Revenue
Correct Answer: C) Equity
Rationale: Retained earnings represent the cumulative net income of a
company that has been retained (not paid out as dividends) since its
inception. It is a component of shareholders' equity on the balance sheet,
reflecting the owners' claim on the company's assets.
, 6. The income statement measures performance over a period of
time.
A) True
B) False
Correct Answer: A) True
Rationale: The income statement, also known as the statement of
operations, summarizes revenues earned and expenses incurred over a
specific period, such as a month, quarter, or year. It answers the
question, "How profitable was the company during this period?"
7. Net income is calculated as:
A) Revenues − Expenses
B) Assets − Liabilities
C) Cash inflows − Cash outflows
D) Sales − Cost of goods sold only
Correct Answer: A) Revenues − Expenses
Rationale: Net income, or the "bottom line," is the result of subtracting
all expenses (including cost of goods sold, operating expenses, interest,
and taxes) from total revenues earned during the period. It represents the
company's overall profitability.
8. A company has revenues of $100,000 and expenses of $70,000. Net
income is:
A) $30,000
B) $70,000
DECISION MAKERS EXAM /
ACCOUNTING FOR DECISION MAKERS
WGU C213 FINAL EXAM 2026/2027
TESTBANK AND STUDY GUIDE
COMPLETE ACCURATE EXAM REAL
QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES (100%
CORRECT VERIFIED SOLUTIONS)
CURRENTLY UPDATED VERSION 2026
EDITION GUARANTEED PASS A+
(BRAND NEW!) FULL REVISED EXAM
JUST RELEASED
1. Which financial statement reports a company's financial position
at a specific point in time?
A) Income statement
B) Statement of cash flows
C) Statement of retained earnings
D) Balance sheet
Correct Answer: D) Balance sheet
,Rationale: The balance sheet provides a snapshot of a company's assets,
liabilities, and equity at a specific date. Unlike the income statement,
which covers a period of time, the balance sheet represents the financial
position on a particular day, such as December 31st. This is a
fundamental concept in financial reporting.
2. The accounting equation is:
A) Assets = Liabilities + Equity
B) Assets + Liabilities = Equity
C) Revenues − Expenses = Net Income
D) Assets = Revenues − Expenses
Correct Answer: A) Assets = Liabilities + Equity
Rationale: This is the fundamental accounting equation that forms the
basis of the double-entry accounting system. It demonstrates that a
company's assets are financed either by borrowing (liabilities) or by
owner investment and retained earnings (equity). This equation must
always balance.
3. Which of the following is classified as an asset?
A) Accounts payable
B) Notes payable
C) Common stock
D) Inventory
Correct Answer: D) Inventory
Rationale: Assets are resources owned by a company that provide
future economic benefit. Inventory, which consists of goods held for
,sale, meets this definition. Accounts payable and notes payable are
liabilities, and common stock is an equity account.
4. Which of the following is classified as a liability?
A) Cash
B) Equipment
C) Accounts receivable
D) Wages payable
Correct Answer: D) Wages payable
Rationale: Liabilities represent obligations owed to others. Wages
payable is an amount owed to employees for work performed, making it
a liability. Cash and accounts receivable are assets, and equipment is a
long-term asset.
5. Retained earnings is classified as which type of account?
A) Asset
B) Liability
C) Equity
D) Revenue
Correct Answer: C) Equity
Rationale: Retained earnings represent the cumulative net income of a
company that has been retained (not paid out as dividends) since its
inception. It is a component of shareholders' equity on the balance sheet,
reflecting the owners' claim on the company's assets.
, 6. The income statement measures performance over a period of
time.
A) True
B) False
Correct Answer: A) True
Rationale: The income statement, also known as the statement of
operations, summarizes revenues earned and expenses incurred over a
specific period, such as a month, quarter, or year. It answers the
question, "How profitable was the company during this period?"
7. Net income is calculated as:
A) Revenues − Expenses
B) Assets − Liabilities
C) Cash inflows − Cash outflows
D) Sales − Cost of goods sold only
Correct Answer: A) Revenues − Expenses
Rationale: Net income, or the "bottom line," is the result of subtracting
all expenses (including cost of goods sold, operating expenses, interest,
and taxes) from total revenues earned during the period. It represents the
company's overall profitability.
8. A company has revenues of $100,000 and expenses of $70,000. Net
income is:
A) $30,000
B) $70,000
