WGU C213 Accounting for Decision Makers
OBJECTIVE ASSESSMENT AND PRE
ASSESSMENT EXAM 2025/2026 BANK /
ACCURATE ACTUAL EXAM WITH
FREQUENTLY TESTED QUESTIONS AND
STUDY GUIDE / EXPERT VERIFIED FOR
GUARANTEED PASS/ALREADY GRADED A+
Which is not a component of the DuPont formula?
a. Net Income to Sales
b. Debt to Equity Ratio
c. Sales to Asset Ratio
1
,d. Assets to Equity Ratio - ....ANSWER...b
What metric converts FV to PV?
a. The discount rate
b. Time
c. The PE ratio
d. None of the above - ....ANSWER...a
The interest rate on a corporate bond does not reflect
a. Risk
b. Inflation
c. Face Value
d. U.S. Treasury rates - ....ANSWER...c
PV ordinarily is less than FV. What would cause the
opposite?
a. Compounding
b. Negative interest rates
c. The exchange rate
d. The Federal Reserve - ....ANSWER...b
2
,If two annuities have the same payments and term, why is
an Annuity Due more valuable than an Ordinary
Annuity?
a. The have equal value
b. Annuity Due payments occur earlier
c. Annuity Due uses a lower discount rate
d. Ordinary annuities are consider more risky -
....ANSWER...b
What is the impact of rising interest rates on foreign
exchange?
a. Makes USD decline in value
b. Has no impact on USD
c. Increases the value of USD
d. Increases the value of EUR - ....ANSWER...c
In cash flow statements, which section reflects so-called
"spontaneous" accounts which vary with sales?
a. Cash flow operations
3
, b. Cash flow investing
c. Cash flow financing
d. Cash flow Sales - ....ANSWER...a
What are the practical disadvantages of the Gordon model
for equity valuation?
a. How to use if no dividends are paid
b. Must project dividends "forever" into the future.
c. Does not address the appropriate discount rate
d. All of the above - ....ANSWER...d
What factor determines the "market risk premium" on
stocks?
a. The level of Treasury yields
4
OBJECTIVE ASSESSMENT AND PRE
ASSESSMENT EXAM 2025/2026 BANK /
ACCURATE ACTUAL EXAM WITH
FREQUENTLY TESTED QUESTIONS AND
STUDY GUIDE / EXPERT VERIFIED FOR
GUARANTEED PASS/ALREADY GRADED A+
Which is not a component of the DuPont formula?
a. Net Income to Sales
b. Debt to Equity Ratio
c. Sales to Asset Ratio
1
,d. Assets to Equity Ratio - ....ANSWER...b
What metric converts FV to PV?
a. The discount rate
b. Time
c. The PE ratio
d. None of the above - ....ANSWER...a
The interest rate on a corporate bond does not reflect
a. Risk
b. Inflation
c. Face Value
d. U.S. Treasury rates - ....ANSWER...c
PV ordinarily is less than FV. What would cause the
opposite?
a. Compounding
b. Negative interest rates
c. The exchange rate
d. The Federal Reserve - ....ANSWER...b
2
,If two annuities have the same payments and term, why is
an Annuity Due more valuable than an Ordinary
Annuity?
a. The have equal value
b. Annuity Due payments occur earlier
c. Annuity Due uses a lower discount rate
d. Ordinary annuities are consider more risky -
....ANSWER...b
What is the impact of rising interest rates on foreign
exchange?
a. Makes USD decline in value
b. Has no impact on USD
c. Increases the value of USD
d. Increases the value of EUR - ....ANSWER...c
In cash flow statements, which section reflects so-called
"spontaneous" accounts which vary with sales?
a. Cash flow operations
3
, b. Cash flow investing
c. Cash flow financing
d. Cash flow Sales - ....ANSWER...a
What are the practical disadvantages of the Gordon model
for equity valuation?
a. How to use if no dividends are paid
b. Must project dividends "forever" into the future.
c. Does not address the appropriate discount rate
d. All of the above - ....ANSWER...d
What factor determines the "market risk premium" on
stocks?
a. The level of Treasury yields
4
