WGU C213 Final Exam (Latest 2026/ 2027 Update) Accounting for Decision Makers Questions with Verified Answers| 100% Correct | Graded A+

WGU C213 Final Exam (Latest 2026/ 2027
Update) Accounting for Decision Makers
Questions with Verified Answers| 100%
Correct | Graded A+
Question:
Describe the purpose of accounting.?
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Answer:

Accounting is the recording of the day-to-day financial activities of a
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company and the organization of that information into summary reports
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used to evaluate the company's financial status.
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Bookkeeping is a part of accounting. Bookkeeping refers to the process of
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recording transactions into various accounts, which is the first step in
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accounting. The next step is to analyze the accounts and organize them
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into financial statements and other useful reports.
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Question:

Describe the three financial statements.?
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Answer:

The balance sheet reports a company's assets, liabilities, and owners'
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equity. It reports the financial position of a firm at a point in time.
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,The income statement reports the amount of net income earned by a
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company during a period. Net income is the excess of a company's
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revenues over its expenses. It reports the financial performance of a firm
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over a period of time.
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The statement of cash flows reports the amount of cash collected and
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paid out by a company in the following three types of activities:
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operating, investing, and financing over a period of time.
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Question:

Lenders?
Answer:
Banks use companies' financial statements in making decisions about
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commercial loans. The financial statements are useful because they help
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the lender predict the future ability of the borrower to repay the loan.
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Question:
Investors?

Answer:

Investors want information to help them estimate how much cash they
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can expect to directly receive from the business in the future if they invest
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in it now.
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,Question:

Company Management? i,-




Answer:

Managers use financial accounting data to formulate company goals, to
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compute bonuses for employees, and to illuminate company weaknesses.
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Question:

Suppliers and Customers?
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Answer:
Suppliers, customers, and employees use financial statements to tell them
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about the long-run prospects of a company.
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Question:
Employees?

Answer:
Financial statement data, as mentioned earlier, are used in determining
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employee bonuses. In addition, financial accounting information can help
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an employee evaluate the employer's ability to fulfill its long-run
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promises, such as for pensions and retiree health care benefits. Financial
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statements are also important in contract negotiations between labor and
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management.

, Question:

Competitors?

Answer:

Competitors use financial accounting information to reveal strategic
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opportunities within their industry.
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Question:

Government Agencies? i,-




Answer:
Government agencies use financial statement data to bolster political and
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regulatory positions for and against companies.
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Question:
Politicians?

Answer:
Politicians use financial statement data to bolster political and regulatory
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positions for and against companies.
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Question:
The Press?
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