WGU C213 ACCOUNTING FOR DECISION MAKERS QUESTIONS & ANSWER… EXA
P R O F E S S I O N A L P R A C T I C E M AT E R I A L S
WGU C213 Accounting for
Decision Makers Questions
& Answers 2026-2027 |
Latest Exam Edition
Verified Answers Exam Ready With Rationales 342 QUESTIONS
DOCUMENT OVERVIEW
This document provides 342 questions with correct answers and explanations covering
accounting for decision makers. It includes diagrams and is designed for students to study
and review, offering a comprehensive resource for certification preparation.
TOPICS
• Foundations of Accounting • Accounting Standards and Bodies
• Financial Statement Analysis
E XA M Q U EST I O N S
Q1 QUESTION 1 OF 342
Accounting
Page 1
, CORRECT ANSWER
A system of providing "quantitative information, primarily financial in nature, about economic
entities that is intended to be useful in making economic decisions."
Q2 QUESTION 2 OF 342
Balance Sheet
CORRECT ANSWER
Document which reports the resources of a company (the assets), the company's obligations
(the liabilities), and the owners' equity, which represents how much money has been invested in
the company by its owners.
Q3 QUESTION 3 OF 342
Bookkeeping
CORRECT ANSWER
The preservation of a systematic, quantitative record of an activity.
Q4 QUESTION 4 OF 342
Financial Accounting
CORRECT ANSWER
The name given to accounting information provided for and used by external users.
Q5 QUESTION 5 OF 342
Financial Statements
Page 2
, CORRECT ANSWER
The three primary financial information documents: the balance sheet, income statement, and
statement of cash flows.
Q6 QUESTION 6 OF 342
Income Statement
CORRECT ANSWER
This document reports the amount of net income earned by a company during a period, with
annual and quarterly income statements being the most common.
Q7 QUESTION 7 OF 342
Managerial Accounting
CORRECT ANSWER
The name given to accounting systems designed for internal users.
Q8 QUESTION 8 OF 342
Statement of Cash Flows
CORRECT ANSWER
This document reports the amount of cash collected and paid out by a company in the
following three types of activities: operating, investing, and financing.
Q9 QUESTION 9 OF 342
Accounting Equation
CORRECT ANSWER
Assets = Liabilities + Owners' Equity
Page 3
, Q10 QUESTION 10 OF 342
Accumulated Other Comprehensive Income
CORRECT ANSWER
The source of these increased assets
Q11 QUESTION 11 OF 342
Assets
CORRECT ANSWER
Assets are the firm's economic resources, formally defined as "probable future economic
benefits obtained or controlled by a particular entity as a result of past transactions or events
Q12 QUESTION 12 OF 342
What does accounting focus on?
CORRECT ANSWER
The impact a business's activities have on its overall financial performance
Q13 QUESTION 13 OF 342
What two items of information are revealed on the balance sheet?
CORRECT ANSWER
Ownership, Debt
Q14 QUESTION 14 OF 342
Which term is defined as the residual interest in the net assets of a company?
Page 4
P R O F E S S I O N A L P R A C T I C E M AT E R I A L S
WGU C213 Accounting for
Decision Makers Questions
& Answers 2026-2027 |
Latest Exam Edition
Verified Answers Exam Ready With Rationales 342 QUESTIONS
DOCUMENT OVERVIEW
This document provides 342 questions with correct answers and explanations covering
accounting for decision makers. It includes diagrams and is designed for students to study
and review, offering a comprehensive resource for certification preparation.
TOPICS
• Foundations of Accounting • Accounting Standards and Bodies
• Financial Statement Analysis
E XA M Q U EST I O N S
Q1 QUESTION 1 OF 342
Accounting
Page 1
, CORRECT ANSWER
A system of providing "quantitative information, primarily financial in nature, about economic
entities that is intended to be useful in making economic decisions."
Q2 QUESTION 2 OF 342
Balance Sheet
CORRECT ANSWER
Document which reports the resources of a company (the assets), the company's obligations
(the liabilities), and the owners' equity, which represents how much money has been invested in
the company by its owners.
Q3 QUESTION 3 OF 342
Bookkeeping
CORRECT ANSWER
The preservation of a systematic, quantitative record of an activity.
Q4 QUESTION 4 OF 342
Financial Accounting
CORRECT ANSWER
The name given to accounting information provided for and used by external users.
Q5 QUESTION 5 OF 342
Financial Statements
Page 2
, CORRECT ANSWER
The three primary financial information documents: the balance sheet, income statement, and
statement of cash flows.
Q6 QUESTION 6 OF 342
Income Statement
CORRECT ANSWER
This document reports the amount of net income earned by a company during a period, with
annual and quarterly income statements being the most common.
Q7 QUESTION 7 OF 342
Managerial Accounting
CORRECT ANSWER
The name given to accounting systems designed for internal users.
Q8 QUESTION 8 OF 342
Statement of Cash Flows
CORRECT ANSWER
This document reports the amount of cash collected and paid out by a company in the
following three types of activities: operating, investing, and financing.
Q9 QUESTION 9 OF 342
Accounting Equation
CORRECT ANSWER
Assets = Liabilities + Owners' Equity
Page 3
, Q10 QUESTION 10 OF 342
Accumulated Other Comprehensive Income
CORRECT ANSWER
The source of these increased assets
Q11 QUESTION 11 OF 342
Assets
CORRECT ANSWER
Assets are the firm's economic resources, formally defined as "probable future economic
benefits obtained or controlled by a particular entity as a result of past transactions or events
Q12 QUESTION 12 OF 342
What does accounting focus on?
CORRECT ANSWER
The impact a business's activities have on its overall financial performance
Q13 QUESTION 13 OF 342
What two items of information are revealed on the balance sheet?
CORRECT ANSWER
Ownership, Debt
Q14 QUESTION 14 OF 342
Which term is defined as the residual interest in the net assets of a company?
Page 4
