WGU C213 ACCOUNTING FOR DECISION MAKERS
OBJECTIVE ASSESSMENT EXAM 2025 QUESTIONS
AND 100% CORRECT ANSWERS!!!!(Graded A+)
Which benefit does a corporation gain by following Generally
Accepted Accounting Principals (GAAP)?
O An increase in the amount of assets it reports
O A decrease in its income tax obligations
O A decrease in the amount of net income it reports
O An increase in its comparability to other companies
O An increase in its comparability to other companies
5. Which body regulates a certified public accounting firm's audit
practices when the firm is auditing a large publicly traded company?
O Another certified accounting firm (CPA)
O The Public Company Accounting Oversight Board (PCAOB)
O The internal revenue service (IRS)
O The financial accounting standards board (FASB)
O The Public Company Accounting Oversight Board (PCAOB)
6. What has had the most significant impact on accounting practices?
O New product innovations
O Mobile computing
O Certification requirements
O Information Technology
O Information Technology
7. What two items of information are revealed on the balance sheet?
Choose 2 answers
O Costs
O Revenues
O Debt
O Expenses
O Ownership
pg. 1
,O Debt
O Ownership
8. Which term is defined as the residual interest in the net assets of a
company?
O Owner's Equity
O Revenues
O Operating Income
O Liabilities
O Owner's Equity
9. A corporation has total liabilities of $300 million, total owners'
equity of $100 million, and current assets of $50 million.
What is the value of the firm's long-term assets?
O $250 million
O $350 million
O $400 million
O $450 million
Assets = Liabilities + Equity
x + 50m = 300m + 100m
Solving for x = 350m
O $350 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?
O In 2014, a company collects cash from a customer for services it
will provide next year (2015)
O In 2014, a company collects cash from a customer for services it
provided in the previous year (2013)
O In 2014, a company enters into a contract whereby it agrees to
provide services to a customer next year in (2015)
O In 2014, a company provide services to a customer for cash will be
collected the next year (2015)
pg. 2
,O In 2014, a company provide services to a customer for cash will be
collected the next year (2015)
11. Which category on the statement of cash flows summarizes cash
receipts and payments to owners and creditors of the company?
O Cash flows from business activities
O Cash flows from financing activities
O Cash flows from investing activities
O Cash flows from operating activities
O Cash flows from financing activities
12. Where would an investor find a summary of a company's
significant accounting policies?
O In the income statement
O In the balance sheet
O In the statement of cash flows
O In the notes to financial statement
O In the notes to financial statement
13. Which assurance does an external audit report provide for its
readers?
O The company will be a good credit risk
O The company's financial statement fairly reflecst it financial
position
O The company will generate positive cash flows
O The company will generate net income
O The company's financial statement fairly reflects it financial
position
14.The recording of the day-to-day financial activities of a company
and the organization of that information into summary reports used to
evaluate the company's financial status - Answer – Accounting
15.The preservation of a systematic, quantitative record of an activity
- Answer - Bookkeeping
pg. 3
, 16.Used by a business to handle routine bookkeeping tasks and to
structure the information so it can be used to evaluate the performance
and financial status of the business - Answer - accounting system
17.Info that is intended to be useful in making decisions about the
future. - Answer - Accounting information
18.What are the three primary financial statements? - Answer -The
balance sheet, the income statement, and the statement of cashflows
19.Who is financial accounting information primarily prepared for
and used by? - Answer - External Users
20.The name given to accounting systems designed for internal users -
Answer - Managerial Accounting
21.Reports a company's assets, liabilities, and owners' equity -
Answer - Balance Sheet
22.Reports the amount of net income earned by a company during a
period - Answer - Income Statement
23.The excess of a company's revenues over its expenses - Answer -
Net income
24.Reports the amount of cash collected and paid out by a company in
the following three types of activities: operating, investing, and
financing
- Answer - statement of cash flows
25.Which private body establishes accounting rules in the U.S.? -
Answer - FAS
26.A private body established and supported by the joint efforts of the
U.S. business community, financial analysts, and practicing
accountants - Answer - Financial Accounting Standards Board
(FASB)
The Securities and Exchange Commission (SEC) - Answer -the
organization that regulates U.S. stock exchanges and seeks to create a
fair information environment in which investors can buy and sell
pg. 4
OBJECTIVE ASSESSMENT EXAM 2025 QUESTIONS
AND 100% CORRECT ANSWERS!!!!(Graded A+)
Which benefit does a corporation gain by following Generally
Accepted Accounting Principals (GAAP)?
O An increase in the amount of assets it reports
O A decrease in its income tax obligations
O A decrease in the amount of net income it reports
O An increase in its comparability to other companies
O An increase in its comparability to other companies
5. Which body regulates a certified public accounting firm's audit
practices when the firm is auditing a large publicly traded company?
O Another certified accounting firm (CPA)
O The Public Company Accounting Oversight Board (PCAOB)
O The internal revenue service (IRS)
O The financial accounting standards board (FASB)
O The Public Company Accounting Oversight Board (PCAOB)
6. What has had the most significant impact on accounting practices?
O New product innovations
O Mobile computing
O Certification requirements
O Information Technology
O Information Technology
7. What two items of information are revealed on the balance sheet?
Choose 2 answers
O Costs
O Revenues
O Debt
O Expenses
O Ownership
pg. 1
,O Debt
O Ownership
8. Which term is defined as the residual interest in the net assets of a
company?
O Owner's Equity
O Revenues
O Operating Income
O Liabilities
O Owner's Equity
9. A corporation has total liabilities of $300 million, total owners'
equity of $100 million, and current assets of $50 million.
What is the value of the firm's long-term assets?
O $250 million
O $350 million
O $400 million
O $450 million
Assets = Liabilities + Equity
x + 50m = 300m + 100m
Solving for x = 350m
O $350 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?
O In 2014, a company collects cash from a customer for services it
will provide next year (2015)
O In 2014, a company collects cash from a customer for services it
provided in the previous year (2013)
O In 2014, a company enters into a contract whereby it agrees to
provide services to a customer next year in (2015)
O In 2014, a company provide services to a customer for cash will be
collected the next year (2015)
pg. 2
,O In 2014, a company provide services to a customer for cash will be
collected the next year (2015)
11. Which category on the statement of cash flows summarizes cash
receipts and payments to owners and creditors of the company?
O Cash flows from business activities
O Cash flows from financing activities
O Cash flows from investing activities
O Cash flows from operating activities
O Cash flows from financing activities
12. Where would an investor find a summary of a company's
significant accounting policies?
O In the income statement
O In the balance sheet
O In the statement of cash flows
O In the notes to financial statement
O In the notes to financial statement
13. Which assurance does an external audit report provide for its
readers?
O The company will be a good credit risk
O The company's financial statement fairly reflecst it financial
position
O The company will generate positive cash flows
O The company will generate net income
O The company's financial statement fairly reflects it financial
position
14.The recording of the day-to-day financial activities of a company
and the organization of that information into summary reports used to
evaluate the company's financial status - Answer – Accounting
15.The preservation of a systematic, quantitative record of an activity
- Answer - Bookkeeping
pg. 3
, 16.Used by a business to handle routine bookkeeping tasks and to
structure the information so it can be used to evaluate the performance
and financial status of the business - Answer - accounting system
17.Info that is intended to be useful in making decisions about the
future. - Answer - Accounting information
18.What are the three primary financial statements? - Answer -The
balance sheet, the income statement, and the statement of cashflows
19.Who is financial accounting information primarily prepared for
and used by? - Answer - External Users
20.The name given to accounting systems designed for internal users -
Answer - Managerial Accounting
21.Reports a company's assets, liabilities, and owners' equity -
Answer - Balance Sheet
22.Reports the amount of net income earned by a company during a
period - Answer - Income Statement
23.The excess of a company's revenues over its expenses - Answer -
Net income
24.Reports the amount of cash collected and paid out by a company in
the following three types of activities: operating, investing, and
financing
- Answer - statement of cash flows
25.Which private body establishes accounting rules in the U.S.? -
Answer - FAS
26.A private body established and supported by the joint efforts of the
U.S. business community, financial analysts, and practicing
accountants - Answer - Financial Accounting Standards Board
(FASB)
The Securities and Exchange Commission (SEC) - Answer -the
organization that regulates U.S. stock exchanges and seeks to create a
fair information environment in which investors can buy and sell
pg. 4
