1
WGU C213 Practice 2025/2026 Exam
Questions with 100% Correct Answers |
Latest Update
What has had the most significant impact on accounting practices? - 🧠 ANSWER
✔✔Information technology
Which term is defined as the residual interest in the net assets of a company? - 🧠
ANSWER ✔✔Owner's equity
Which category on the statement of cash flows summarizes cash receipts and
payments to owners and creditors of the company? - 🧠 ANSWER ✔✔Cash flows
from financing activities
Where would an investor find a summary of a company's significant accounting
policies? - 🧠 ANSWER ✔✔In the Notes to Financial Statements
Which assurance does an external audit report provide for its readers? - 🧠
ANSWER ✔✔The company's financial statements fairly reflect its financial
position.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
1
STATEMENT. ALL RIGHTS RESERVED
, 2
Relevant? - 🧠 ANSWER ✔✔Information having to do with the matter at hand
Material? - 🧠 ANSWER ✔✔Information that is important enough to make a
difference
Reliable? - 🧠 ANSWER ✔✔Information that can be verified
Conservatism? - 🧠 ANSWER ✔✔Information related to recognizing losses as they
occur
Steps in the decision cycle? - 🧠 ANSWER ✔✔1. Prepare financial statements
2. Analyze financial statements
3. gather information
4. Make decision
5. implement decision
Price-earnings ratio? - 🧠 ANSWER ✔✔Market value of shares / net income
What does it mean if a company has a debt ratio of 101.5%? - 🧠 ANSWER ✔✔The
company had 1.5% more total liabilities than total assests
What is consistent with a continual decline in gross profit if the firms cost of goods
remains the same? - 🧠 ANSWER ✔✔Continual decrease in sales
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
WGU C213 Practice 2025/2026 Exam
Questions with 100% Correct Answers |
Latest Update
What has had the most significant impact on accounting practices? - 🧠 ANSWER
✔✔Information technology
Which term is defined as the residual interest in the net assets of a company? - 🧠
ANSWER ✔✔Owner's equity
Which category on the statement of cash flows summarizes cash receipts and
payments to owners and creditors of the company? - 🧠 ANSWER ✔✔Cash flows
from financing activities
Where would an investor find a summary of a company's significant accounting
policies? - 🧠 ANSWER ✔✔In the Notes to Financial Statements
Which assurance does an external audit report provide for its readers? - 🧠
ANSWER ✔✔The company's financial statements fairly reflect its financial
position.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
1
STATEMENT. ALL RIGHTS RESERVED
, 2
Relevant? - 🧠 ANSWER ✔✔Information having to do with the matter at hand
Material? - 🧠 ANSWER ✔✔Information that is important enough to make a
difference
Reliable? - 🧠 ANSWER ✔✔Information that can be verified
Conservatism? - 🧠 ANSWER ✔✔Information related to recognizing losses as they
occur
Steps in the decision cycle? - 🧠 ANSWER ✔✔1. Prepare financial statements
2. Analyze financial statements
3. gather information
4. Make decision
5. implement decision
Price-earnings ratio? - 🧠 ANSWER ✔✔Market value of shares / net income
What does it mean if a company has a debt ratio of 101.5%? - 🧠 ANSWER ✔✔The
company had 1.5% more total liabilities than total assests
What is consistent with a continual decline in gross profit if the firms cost of goods
remains the same? - 🧠 ANSWER ✔✔Continual decrease in sales
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
