Accounting for Decision Makers (C213) – Western Governors University – – Practice Questions with Detailed Answers

ACCOUNTING FOR DECISION MAKERS
(C213) QUESTIONS WITH 100% ACCURATE
SOLUTIONS 2025-2026 Western Governors
University

,Standards established by the International Accounting Standards Board are referred to as:
• International Financial Reporting Standards
• International Auditing Standards
• Generally Accepted Accounting Standards
• International Financial Accounting Standards

* International Financial Reporting Standards


Which of the following organizations has specific legal authority to establish accounting
standards for publicly held companies?
• Securities and Exchange Commission (SEC)
• Financial Accounting Standards Board (FASB)
• American Institute of Certified Public Accountants (AICPA)
• Internal Revenue Service (IRS)

* Securities and Exchange Commission (SEC)


Which of the following is NOT a service typically provided by large public accounting firms?
• Establishing accounting systems
• Redesigning operating procedures
• Performing audits
• Making management decisions

* Making management decisions


The initials CPA stand for
• Certified Professional Appraiser
• Certified Professional Accountant
• Certified Public Auditor
• Certified Public Accountant

* Certified Public Accountant


The organization that develops worldwide accounting standards is the:
• International Accounting Standards Board (IASB)
• International Accounting Standards Committee (IASC)
• International Committee on Accounting Standards (ICAS)
• International Board of Accounting Standards (IBAS)

* International Accounting Standards Board (IASB)

,Which of the following is NOT a reason for the integration of worldwide accounting standards?
• the integration of the global economy
• the need to evaluate investments across the world
• the increased efficiency of financial markets
• the theoretical necessity of a common set of accounting standards

* the theoretical necessity of a common set of accounting standards


The International Accounting Standards Board (IASB) is charged with developing worldwide
accounting practices?
• True
• False

ANSWER: True


With the current state of information technology, investors outside a company are now allowed
access to a company's internal database of financial information and do their own customized
analysis of a firm's performance.
• True
• False

ANSWER: False


Increased federal oversight of the audit process resulted from the passage of the following act of
Congress –
• Sarbanes-Oxley Act
• Financial Reports Act
• Access to High Standards Act
• AGOA Acceleration Act

ANSWER: Sarbanes-Oxley Act


The emphasis in financial accounting is on which of the following external user groups?
• Investors and creditors
• Management
• Educators
• Certified public accountants

ANSWER: Investors and creditors

, The primary internal group that uses accounting information is:
• Competitors
• Investors
• Management
• Government agencies

ANSWER: Management


Internal reports are generally used by:
• Management
• Suppliers
• Employees
• Lenders

ANSWER: Management


Which of the following is NOT an external user of financial information?
• Customers
• Competitors
• Management
• Suppliers

ANSWER: Management


A borrower benefits from providing financial information regarding income and expenses in the
form of a lower interest rate on the loan because of reduced uncertainty for the lender with
regard to repayment.
• True
• False

ANSWER: True


Which of the following is NOT one of the three primary financial statements?
• The Statement of Retained Earnings
• The Balance Sheet
• The Statement of Cash Flows
• The Income Statement

ANSWER: The Statement of Retained Earnings