WGU C213 Accounting for Decision Makers – Western
Governors University – Academic Year 2026/2027 –
Objective Assessment Comprehensive Examination with
Verified Questions and Correct Answer Rationales
ACCOUNTING EXAM
A–D Multiple Choice • Answer Key & Rationales
Name: ____________________________________ Date: ____________________
Instructions: Select the best answer for each question. For questions containing two source statements,
choose the option that correctly identifies both statements. The wording and answers are based on the
supplied study material.
1. What does accounting focus on?
A. The impact a business's activities have on it's overall financial performance
B. The preparation of marketing plans and sales forecasts
C. The hiring and training of employees
D. The design of products and services
2. Which report summarizes cash collections and cash expenditures from operating, investing, and
financing activities over a period of time?
A. Income statement
B. Statement of cash flows
C. Balance sheet
D. Statement of owner's equity
3. Which users would have a primary concern with an organization's ability to provide healthcare
benefits?
A. Customers
B. Competitors
C. Employees
D. Suppliers
4. Which benefit does a corporation gain by following Generally Accepted Accounting Principals
(GAAP)?
A. An increase in its comparability to other companies
B. A guarantee of higher profits
Accounting Exam
, C. A reduction in all liabilities
D. Elimination of the need for audits
5. Which body regulates a certified public accounting firm's audit practices when the firm is
auditing a large publicly traded company?
A. The SEC
B. The PCAOB
C. The FASB
D. The IRS
6. What has had the most significant impact on accounting practices?
A. Advertising
B. Information Technology
C. International travel
D. Office design
7. What two items of information are revealed on the balance sheet?
A. Debt, Ownership
B. Sales, Expenses
C. Cash collections, Cash expenditures
D. Profit, Dividends
8. Which term is defined as the residual interest in the net assets of a company?
A. Revenue
B. Liability
C. Owner's equity
D. Expense
9. A corporation has total liabilities of $300 million, total owner's equity of $100 million, and
current assets of $50 million. What is the value of the firm's long-term assets?
A. $250 million
B. $300 million
C. $350 million
D. $400 million
10. Which situation should result in revenue recognition on the income statement for the year
ending 12/31/14 if the firm is using accrual-basis accounting?
A. In 2014, a company provides services to a customer for which cash will be collected the next year
(2015)
B. In 2014, a company receives cash for services to be provided in 2015
C. In 2014, a company pays for services to be received in 2015
D. In 2014, a company orders supplies that will be delivered in 2015
11. Which category on the statement of cash flows summarizes cash receipts and payments to
owners and creditors of the company?
Accounting Exam
Governors University – Academic Year 2026/2027 –
Objective Assessment Comprehensive Examination with
Verified Questions and Correct Answer Rationales
ACCOUNTING EXAM
A–D Multiple Choice • Answer Key & Rationales
Name: ____________________________________ Date: ____________________
Instructions: Select the best answer for each question. For questions containing two source statements,
choose the option that correctly identifies both statements. The wording and answers are based on the
supplied study material.
1. What does accounting focus on?
A. The impact a business's activities have on it's overall financial performance
B. The preparation of marketing plans and sales forecasts
C. The hiring and training of employees
D. The design of products and services
2. Which report summarizes cash collections and cash expenditures from operating, investing, and
financing activities over a period of time?
A. Income statement
B. Statement of cash flows
C. Balance sheet
D. Statement of owner's equity
3. Which users would have a primary concern with an organization's ability to provide healthcare
benefits?
A. Customers
B. Competitors
C. Employees
D. Suppliers
4. Which benefit does a corporation gain by following Generally Accepted Accounting Principals
(GAAP)?
A. An increase in its comparability to other companies
B. A guarantee of higher profits
Accounting Exam
, C. A reduction in all liabilities
D. Elimination of the need for audits
5. Which body regulates a certified public accounting firm's audit practices when the firm is
auditing a large publicly traded company?
A. The SEC
B. The PCAOB
C. The FASB
D. The IRS
6. What has had the most significant impact on accounting practices?
A. Advertising
B. Information Technology
C. International travel
D. Office design
7. What two items of information are revealed on the balance sheet?
A. Debt, Ownership
B. Sales, Expenses
C. Cash collections, Cash expenditures
D. Profit, Dividends
8. Which term is defined as the residual interest in the net assets of a company?
A. Revenue
B. Liability
C. Owner's equity
D. Expense
9. A corporation has total liabilities of $300 million, total owner's equity of $100 million, and
current assets of $50 million. What is the value of the firm's long-term assets?
A. $250 million
B. $300 million
C. $350 million
D. $400 million
10. Which situation should result in revenue recognition on the income statement for the year
ending 12/31/14 if the firm is using accrual-basis accounting?
A. In 2014, a company provides services to a customer for which cash will be collected the next year
(2015)
B. In 2014, a company receives cash for services to be provided in 2015
C. In 2014, a company pays for services to be received in 2015
D. In 2014, a company orders supplies that will be delivered in 2015
11. Which category on the statement of cash flows summarizes cash receipts and payments to
owners and creditors of the company?
Accounting Exam
