WGU C213 ACCOUNTING FOR DECISION MAKERS OBJECTIVE & PRE ASSESSMENT EXAM 2025 STUDY GUIDE Latest 2025/2026 COMPLETE FREQUENTLY MOST TESTED QUESTIONS WITH COMPLETE SOLUTION /GET IT 100% ACCURATE!(Graded A+)

WGU C213 ACCOUNTING FOR DECISION MAKERS
OBJECTIVE & PRE ASSESSMENT EXAM STUDY GUIDE
QUESTIONS AND VERIFIED ANSWERS / A+ GRADE


1. What does accounting focus on
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ANS: The impact a business's activities have on its
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overall financial performance
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2. Which report summarizes cash collections and cash expenditures from operating, i
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nvesting, and financing activities over a period of time
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ANS: Statement of cash flows
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3. Which users would have a primary concern with an organization's ability to provide he
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althcare benefits
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ANS: Employees
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4. Which benefit does a corporation gain by following Generally Accepted Ac-
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g counting Principles (GAPP)
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ANS: An increase in its compatibility to other companies
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,5. Which body regulates a certified public accounting firm's audit practices when th
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e firm is auditing a large publicly traded company
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ANS: The Public Com- pany Accounting Oversight Board (PACOB)
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6. What has had the most significant impact on Accounting practices
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gANS: Infor- mation technology
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7. What two items of information are revealed on the balance sheet
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ANS: Owner- ship and Debt
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8. Which term is defined as the residual in the net assets of a company
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gANS: Own- ers equity
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9. Which situation should result in revenue recognition on the income state-
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gment for the year ending 12/31/14 if the firm is using accrual accounting
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ANS: In 2014, a company provides services to a customer for which cash will be collected the ne
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xt year (2015).
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10. Which category on the statement of cash flows summarizes cash receipts and p
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ayments to owners and creditors of the company
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ANS: Cash from financing activities
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11. Where would an investor find a summary of a company's significant ac-
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gcounting policies g




ANS: In the notes to financial statements
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,12. Which assurance does an external audit report provide for its readers
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ANS: -The company's financial statements fairly reflect its financial position
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13. Information that can be verified: g g g g




ANS:Reliable


14. Information having to do with the matter at hand: g g g g g g g g




g ANS: Relevant
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15. Information that is important enough to make a difference:
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g ANS: Material
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16. Information related to recognizing losses as they occur:
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g ANS: Conservatism
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17. What is consistent with a continual decline in gross profit if the firm's cost of goods sol
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d remains the same
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ANS: Continual decrease in sales
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18. Which form of debt should be reported in the long-term liability category?-
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ANS:: Notes payable expected to be paid in 18 months
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, 19. Which values affect the measurement of net income
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ANS: Operating expenses
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&
Ordinary gains and losses g g g




20. Which items' subtotals are included in a multi-step income statement
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gANS: -Gross profit & Income from operations
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21. What is a common category in a statement of cash flows
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ANS: Cash from investing activities
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22. Which cash flow category would include "cash received from investors"?-
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: Cash from financing activities
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23. Which item is an investing activityg g g g g




ANS: Cash payments for purchase of plant assets
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24. What impact does the sale of equipment have on the statement of cash flows
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ANS: Increase in cash from investing activities
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25. What is known about the direct and indirect methods of preparing state-
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g ments of cash flow g g g




ANS: The indirect method is more popular among large U.S. companies
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4g /g 15