WGU C213 – Accounting for Decision Makers (Western
Governors University) – Final Exam Questions and
Verified Answers 2025–2026 – Complete Exam
Preparation Material
Introduction:
This document provides a full set of verified final exam questions and
answers for the WGU course C213 Accounting for Decision Makers
for the 2025–2026 academic year. It covers all key accounting topics
tested in the exam, including the income statement, balance sheet,
statement of cash flows, GAAP principles, financial statement
analysis, and major accounting organizations (FASB, SEC, AICPA,
PCAOB, IASB). The material includes definitions, formulas, and
example calculations for key ratios and concepts, offering a
comprehensive and structured study guide aligned with the official
WGU curriculum.
Exam Questions and Answers
The idea that transactions are recorded at their exchange prices at
the transaction date is referred to as the --- correct answer ---Cost
principle
Income Statement --- correct answer ---describes a company's
financial performance for a specified period of time
Revenue --- correct answer ---is the amount of assets created
through the performance of business operations. hink of revenue as
,another way for a company to acquire assets—in the same way that
assets can be acquired by borrowing or by owners' investment,
assets can also be acquired by providing a product or service that
customers are willing to pay for. (Retailers/manufacturers)
Expenses --- correct answer ---The amount of assets consumed
from the performance of business operations and thus are the
opposite of revenues. Other expenses might include salaries,
utilities, rent, interest, repairs and maintenance, and various taxes;
for example, Safeway's income tax expense in 2012 was $262
million.
Gains and Losses --- correct answer ---increases or decreases in
equity from peripheral or incidental transactions of an entity
Net Income --- correct answer ---the difference between total
revenue and total expenses when total revenue is greater
net loss --- correct answer ---The difference between total revenue
and total expenses when total expenses are greater
Earnings Per Share (EPS) --- correct answer ---A measure of the net
income earned on each share of common stock; computed as net
income minus preferred dividends divided by the average number
of common shares outstanding during the year.
,Net Income Equation --- correct answer ---Revenues - Expenses =
Net Income
Time Period Concept --- correct answer ---requires accountants to
exercise judgment in unraveling the income effects of business
deals that are only partially completed by the end of the reporting
period.
Revenue Recognition --- correct answer ---formal recording and
reporting of revenues at the appropriate time
Another name for the income statement is --- correct answer ---
Statement of earnings
Which of the following would be included on an income statement?
--- correct answer ---Rent expense
What will increase from the sale of goods or services? --- correct
answer ---Revenues
Which of the following is an overall measure of the performance of
a business entity's activities? --- correct answer ---Net income (or
net loss)
, Revenues cause --- correct answer ---An increase in net assets
Costs that are incurred during the normal operations of a business
to generate revenues are called --- correct answer ---Expenses
Expenses generally cause --- correct answer ---A decrease in net
assets
Statement of Cash Flows --- correct answer ---A financial statement
that provides financial information about the cash receipts and cash
payments of a business for a specific period of time.
individual cash flow items are classified according to three main
activities: --- correct answer ---operating, investing, and financing.
Operating Activities --- correct answer ---activities involved in
producing and selling goods and services and thus comprise the
day-to-day business of a company. Cash receipts from selling goods
or from providing services are the primary operating cash inflow.
Investing Activities --- correct answer ---the purchase and sale of
land, buildings, and equipment. Investing activities also include
buying and selling stocks of other companies.
Governors University) – Final Exam Questions and
Verified Answers 2025–2026 – Complete Exam
Preparation Material
Introduction:
This document provides a full set of verified final exam questions and
answers for the WGU course C213 Accounting for Decision Makers
for the 2025–2026 academic year. It covers all key accounting topics
tested in the exam, including the income statement, balance sheet,
statement of cash flows, GAAP principles, financial statement
analysis, and major accounting organizations (FASB, SEC, AICPA,
PCAOB, IASB). The material includes definitions, formulas, and
example calculations for key ratios and concepts, offering a
comprehensive and structured study guide aligned with the official
WGU curriculum.
Exam Questions and Answers
The idea that transactions are recorded at their exchange prices at
the transaction date is referred to as the --- correct answer ---Cost
principle
Income Statement --- correct answer ---describes a company's
financial performance for a specified period of time
Revenue --- correct answer ---is the amount of assets created
through the performance of business operations. hink of revenue as
,another way for a company to acquire assets—in the same way that
assets can be acquired by borrowing or by owners' investment,
assets can also be acquired by providing a product or service that
customers are willing to pay for. (Retailers/manufacturers)
Expenses --- correct answer ---The amount of assets consumed
from the performance of business operations and thus are the
opposite of revenues. Other expenses might include salaries,
utilities, rent, interest, repairs and maintenance, and various taxes;
for example, Safeway's income tax expense in 2012 was $262
million.
Gains and Losses --- correct answer ---increases or decreases in
equity from peripheral or incidental transactions of an entity
Net Income --- correct answer ---the difference between total
revenue and total expenses when total revenue is greater
net loss --- correct answer ---The difference between total revenue
and total expenses when total expenses are greater
Earnings Per Share (EPS) --- correct answer ---A measure of the net
income earned on each share of common stock; computed as net
income minus preferred dividends divided by the average number
of common shares outstanding during the year.
,Net Income Equation --- correct answer ---Revenues - Expenses =
Net Income
Time Period Concept --- correct answer ---requires accountants to
exercise judgment in unraveling the income effects of business
deals that are only partially completed by the end of the reporting
period.
Revenue Recognition --- correct answer ---formal recording and
reporting of revenues at the appropriate time
Another name for the income statement is --- correct answer ---
Statement of earnings
Which of the following would be included on an income statement?
--- correct answer ---Rent expense
What will increase from the sale of goods or services? --- correct
answer ---Revenues
Which of the following is an overall measure of the performance of
a business entity's activities? --- correct answer ---Net income (or
net loss)
, Revenues cause --- correct answer ---An increase in net assets
Costs that are incurred during the normal operations of a business
to generate revenues are called --- correct answer ---Expenses
Expenses generally cause --- correct answer ---A decrease in net
assets
Statement of Cash Flows --- correct answer ---A financial statement
that provides financial information about the cash receipts and cash
payments of a business for a specific period of time.
individual cash flow items are classified according to three main
activities: --- correct answer ---operating, investing, and financing.
Operating Activities --- correct answer ---activities involved in
producing and selling goods and services and thus comprise the
day-to-day business of a company. Cash receipts from selling goods
or from providing services are the primary operating cash inflow.
Investing Activities --- correct answer ---the purchase and sale of
land, buildings, and equipment. Investing activities also include
buying and selling stocks of other companies.
