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WGU C213 2025/2026 Exam Questions
with Detailed Verified Answers (100%
Correct Answers) | Already Graded A+
Accounting - 🧠 ANSWER ✔✔A system of providing "quantitative information,
primarily financial in nature, about economic entities that is intended to be useful
in making economic decisions."
Which of the following ratios is used to measure the profit earned on each dollar
invested in a firm? - 🧠 ANSWER ✔✔Return on equity
Which of the following transactions could increase a firm's current ratio? - 🧠
ANSWER ✔✔Payment of accounts payable
What ratio is used to measure a firm's liquidity? - 🧠 ANSWER ✔✔Current ratio
Which of the following ratios is calculated using only balance sheet numbers? - 🧠
ANSWER ✔✔Current Ratio
Which of the following below generally is the most useful in analyzing companies
of different sizes? - 🧠 ANSWER ✔✔Common-sized financial statement
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
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STATEMENT. ALL RIGHTS RESERVED
,2
In a common-size income statement, each item on the statement is expressed as a
percentage of - 🧠 ANSWER ✔✔Revenue
In a common-size balance sheet, using the percent of sales method, each item on
the balance sheet is typically expressed as a percentage of - 🧠 ANSWER ✔✔Sales
Revenue
In a common-size income statement, each item on the statement is expressed as a
percentage of - 🧠 ANSWER ✔✔Revenue
When using common-size statements - 🧠 ANSWER ✔✔Data may be selected for
the same business as of different dates, or for two or more businesses as of the
same date
Which of the following ratios is used to measure a firm's leverage? - 🧠 ANSWER
✔✔
Which of the following ratios is used to measure a firm's leverage? - 🧠 ANSWER
✔✔Assets / Equity
Which of the following is included in the DuPont framework? - 🧠 ANSWER ✔✔A
measure of:
Efficiency
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
,3
Leverage
Profitability
Which cash flow ratio reflects a company's ability to finance its capital expansion
through cash from operations? - 🧠 ANSWER ✔✔Cash flow adequacy
In general, most companies have significant noncash expenses that reduce net
income and also cause the cash flow-to-net income ratio to be - 🧠 ANSWER
✔✔Greater than 1
The particular analytical measures chosen to analyze a company may be influenced
by all BUT which one of the following? - 🧠 ANSWER ✔✔Product quality or
service effectiveness
Which one of these is NOT one of the benchmarking problems that arises when
analyzing financial statements? - 🧠 ANSWER ✔✔All of these are benchmarking
problems:
Reported financial statement numbers may actually be a measurement of different
things
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
, 4
Companies that are being compared may be conglomerates
Not all companies use the same accounting practices
Which of the following statements is true about disagreements in the financial
statements of a company? - 🧠 ANSWER ✔✔Disagreements result when different
people arrive at different conclusions based on the same set of facts.
Which of the following statements is true about errors in the financial statements of
a company? - 🧠 ANSWER ✔✔Errors are not intentional and when detected are
immediately corrected.
Which of the following is NOT a reason for problems occurring in the financial
statements? - 🧠 ANSWER ✔✔Safeguards
Which one of the following errors causes net income to be understated? - 🧠
ANSWER ✔✔Failure to record revenue earned but not billed
If the total amount for Rent Expense is inadvertently posted to Prepaid Rent at the
end of the year, what will be the effect on the year-end financial statements? - 🧠
ANSWER ✔✔Assets will be overstated
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
4
STATEMENT. ALL RIGHTS RESERVED
WGU C213 2025/2026 Exam Questions
with Detailed Verified Answers (100%
Correct Answers) | Already Graded A+
Accounting - 🧠 ANSWER ✔✔A system of providing "quantitative information,
primarily financial in nature, about economic entities that is intended to be useful
in making economic decisions."
Which of the following ratios is used to measure the profit earned on each dollar
invested in a firm? - 🧠 ANSWER ✔✔Return on equity
Which of the following transactions could increase a firm's current ratio? - 🧠
ANSWER ✔✔Payment of accounts payable
What ratio is used to measure a firm's liquidity? - 🧠 ANSWER ✔✔Current ratio
Which of the following ratios is calculated using only balance sheet numbers? - 🧠
ANSWER ✔✔Current Ratio
Which of the following below generally is the most useful in analyzing companies
of different sizes? - 🧠 ANSWER ✔✔Common-sized financial statement
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
1
STATEMENT. ALL RIGHTS RESERVED
,2
In a common-size income statement, each item on the statement is expressed as a
percentage of - 🧠 ANSWER ✔✔Revenue
In a common-size balance sheet, using the percent of sales method, each item on
the balance sheet is typically expressed as a percentage of - 🧠 ANSWER ✔✔Sales
Revenue
In a common-size income statement, each item on the statement is expressed as a
percentage of - 🧠 ANSWER ✔✔Revenue
When using common-size statements - 🧠 ANSWER ✔✔Data may be selected for
the same business as of different dates, or for two or more businesses as of the
same date
Which of the following ratios is used to measure a firm's leverage? - 🧠 ANSWER
✔✔
Which of the following ratios is used to measure a firm's leverage? - 🧠 ANSWER
✔✔Assets / Equity
Which of the following is included in the DuPont framework? - 🧠 ANSWER ✔✔A
measure of:
Efficiency
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
,3
Leverage
Profitability
Which cash flow ratio reflects a company's ability to finance its capital expansion
through cash from operations? - 🧠 ANSWER ✔✔Cash flow adequacy
In general, most companies have significant noncash expenses that reduce net
income and also cause the cash flow-to-net income ratio to be - 🧠 ANSWER
✔✔Greater than 1
The particular analytical measures chosen to analyze a company may be influenced
by all BUT which one of the following? - 🧠 ANSWER ✔✔Product quality or
service effectiveness
Which one of these is NOT one of the benchmarking problems that arises when
analyzing financial statements? - 🧠 ANSWER ✔✔All of these are benchmarking
problems:
Reported financial statement numbers may actually be a measurement of different
things
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
, 4
Companies that are being compared may be conglomerates
Not all companies use the same accounting practices
Which of the following statements is true about disagreements in the financial
statements of a company? - 🧠 ANSWER ✔✔Disagreements result when different
people arrive at different conclusions based on the same set of facts.
Which of the following statements is true about errors in the financial statements of
a company? - 🧠 ANSWER ✔✔Errors are not intentional and when detected are
immediately corrected.
Which of the following is NOT a reason for problems occurring in the financial
statements? - 🧠 ANSWER ✔✔Safeguards
Which one of the following errors causes net income to be understated? - 🧠
ANSWER ✔✔Failure to record revenue earned but not billed
If the total amount for Rent Expense is inadvertently posted to Prepaid Rent at the
end of the year, what will be the effect on the year-end financial statements? - 🧠
ANSWER ✔✔Assets will be overstated
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
4
STATEMENT. ALL RIGHTS RESERVED
