WGU C213 Accounting for Decision Makers
OBJECTIVE ASSESSMENT EXAM
2025/2026 BANK / ACCURATE ACTUAL
EXAM WITH FREQUENTLY TESTED
QUESTIONS AND STUDY GUIDE /
EXPERT VERIFIED FOR GUARANTEED
PASS/ALREADY GRADED A+
A company's trial balance shows $900 in long-term debt.
On which financial statement should this be shown?
A. The general ledger
B. The statement of cash flows
C. The income statement
D. The balance sheet - ....ANSWER...d
What do cash flows from financing activities generally
relate to?
A. A firm's purchase and sale of long-term assets
1
,B. A firm's non-cash transactions
C. A firms' debt and equity transactions
D. A firms sale of goods and services - ....ANSWER...c
What is true about the cash flow from the operating
activities section of the statement of cash flows?
A. Increases in current liability accounts
represents an inflow of cash and should be added
to net income
B. Decreases in current liability accounts represent an
outflow of cash and should be added to net income
C. Increases in current liability accounts represent an
outflow of cash and should be subtracted from net income
D. Decreases in current liability accounts represent an
inflow of cash and should be added to net income -
....ANSWER...a
2
,An analyst is comparing the ratios of two firms and needs
to address accounting differences. What would be
considered an accounting difference between two firms?
A. The firms are in different industries
B. The firms have different auditors
C. The firms use different inventory methods
D. The firms have different fiscal years - ....ANSWER...c
What advantage does the Gordon Growth Model have
compared to the capital asset pricing model (CAPM)?
A. It is highly accurate in predicting future growth
B. It requires assumptions about growth that benefit fast-
growing companies
C. It provides an easier to understand and relatively
accurate forecast when growth rates are stable
3
, D. It requires the use of accurate known factors, such
future as growth rates. - ....ANSWER...c
How does the weighted average cost of capital affect a
company's growth opportunities?
A. The lower the cost of capital, the greater the growth
opportunities
B. Only the cost of debt will affect growth opportunities
C. The lower the cost of capital, the lower the growth
opportunities
D. The higher the cost of capital, the greater the growth
opportunities - ....ANSWER...a
Under which three conditions would a firm decide to
reduce the growth rate? Choose 3
A. When investors are dissatisfied with the dividend
payout ratio
4
OBJECTIVE ASSESSMENT EXAM
2025/2026 BANK / ACCURATE ACTUAL
EXAM WITH FREQUENTLY TESTED
QUESTIONS AND STUDY GUIDE /
EXPERT VERIFIED FOR GUARANTEED
PASS/ALREADY GRADED A+
A company's trial balance shows $900 in long-term debt.
On which financial statement should this be shown?
A. The general ledger
B. The statement of cash flows
C. The income statement
D. The balance sheet - ....ANSWER...d
What do cash flows from financing activities generally
relate to?
A. A firm's purchase and sale of long-term assets
1
,B. A firm's non-cash transactions
C. A firms' debt and equity transactions
D. A firms sale of goods and services - ....ANSWER...c
What is true about the cash flow from the operating
activities section of the statement of cash flows?
A. Increases in current liability accounts
represents an inflow of cash and should be added
to net income
B. Decreases in current liability accounts represent an
outflow of cash and should be added to net income
C. Increases in current liability accounts represent an
outflow of cash and should be subtracted from net income
D. Decreases in current liability accounts represent an
inflow of cash and should be added to net income -
....ANSWER...a
2
,An analyst is comparing the ratios of two firms and needs
to address accounting differences. What would be
considered an accounting difference between two firms?
A. The firms are in different industries
B. The firms have different auditors
C. The firms use different inventory methods
D. The firms have different fiscal years - ....ANSWER...c
What advantage does the Gordon Growth Model have
compared to the capital asset pricing model (CAPM)?
A. It is highly accurate in predicting future growth
B. It requires assumptions about growth that benefit fast-
growing companies
C. It provides an easier to understand and relatively
accurate forecast when growth rates are stable
3
, D. It requires the use of accurate known factors, such
future as growth rates. - ....ANSWER...c
How does the weighted average cost of capital affect a
company's growth opportunities?
A. The lower the cost of capital, the greater the growth
opportunities
B. Only the cost of debt will affect growth opportunities
C. The lower the cost of capital, the lower the growth
opportunities
D. The higher the cost of capital, the greater the growth
opportunities - ....ANSWER...a
Under which three conditions would a firm decide to
reduce the growth rate? Choose 3
A. When investors are dissatisfied with the dividend
payout ratio
4
