WGU C213 Accounting for Decision
Makers 2025 – Actual Exam Questions
and Verified Answers | Object
Assessment | 100% Correct | A Grade
Grade A+ Guaranteed | 100% Correct | Latest 2025/2026 Edition
This verified answer key for the WGU C213 Objective Assessment (OA) exam (2025/2026) is
based on the most recent course updates, including financial accounting principles, managerial
accounting, financial statements, ratios, budgeting, and decision-making tools. It includes 50
frequently tested questions (multiple-choice and select-all-that-apply) with answers in red and
detailed rationales. The OA is 100 questions (120 minutes, 70% pass rate); this guide covers core
competencies for exemplary scoring (90%+).
Section 1: Nature and Purpose of Accounting (10 Questions)
1. What does accounting primarily focus on? The impact of a business's activities on its
overall financial performance Rationale: Accounting provides quantitative financial data to
evaluate economic activities and support decision-making for stakeholders, distinguishing it
from non-financial aspects like marketing.
2. Which financial statement summarizes cash collections and expenditures from operating,
investing, and financing activities? Statement of cash flows Rationale: The statement of cash
flows categorizes cash movements into three activities to assess liquidity and solvency,
reconciling net income to actual cash changes.
3. Which users have primary concern with an organization's ability to provide healthcare
benefits? Employees Rationale: Employees depend on financial statements to gauge the
company's stability for benefits like healthcare, unlike investors who prioritize returns or
creditors who focus on repayment.
, 4. What has had the most significant impact on accounting practices? Information
technology Rationale: IT advancements (e.g., ERP systems, AI-driven audits) have automated
processes, improved accuracy, and enabled real-time reporting, transforming traditional manual
accounting.
5. Which body regulates a certified public accounting firm's audit practices for large
publicly traded companies? Public Company Accounting Oversight Board (PCAOB)
Rationale: Established by the Sarbanes-Oxley Act, PCAOB oversees audits of public companies
to ensure independence and compliance, distinct from FASB (standards) or AICPA (CPAs).
6. What is the primary difference between financial and managerial accounting? Financial
accounting is external and GAAP-based; managerial accounting is internal and flexible
Rationale: Financial accounting reports to external stakeholders using standardized GAAP rules,
while managerial accounting aids internal decisions with customized, forward-looking data.
7. What does the balance sheet represent? A snapshot of assets, liabilities, and equity at a
specific point in time Rationale: It reflects financial position via Assets = Liabilities + Equity,
helping evaluate solvency and resource allocation.
8. What is the purpose of the income statement? To summarize revenues, expenses, and net
income over a period Rationale: It measures profitability and performance, providing insights
into operational efficiency and earnings.
9. What does the statement of stockholders' equity track? Changes in equity from retained
earnings, dividends, and stock transactions Rationale: It reconciles beginning and ending
equity, explaining impacts from net income, dividends, and capital changes.
10. What is the role of the statement of cash flows? To show cash inflows and outflows from
operating, investing, and financing activities Rationale: It highlights cash generation and
usage, revealing liquidity issues not visible in accrual-based income statements.
Section 2: Financial Accounting Principles and Financial Statements (15 Questions)
Makers 2025 – Actual Exam Questions
and Verified Answers | Object
Assessment | 100% Correct | A Grade
Grade A+ Guaranteed | 100% Correct | Latest 2025/2026 Edition
This verified answer key for the WGU C213 Objective Assessment (OA) exam (2025/2026) is
based on the most recent course updates, including financial accounting principles, managerial
accounting, financial statements, ratios, budgeting, and decision-making tools. It includes 50
frequently tested questions (multiple-choice and select-all-that-apply) with answers in red and
detailed rationales. The OA is 100 questions (120 minutes, 70% pass rate); this guide covers core
competencies for exemplary scoring (90%+).
Section 1: Nature and Purpose of Accounting (10 Questions)
1. What does accounting primarily focus on? The impact of a business's activities on its
overall financial performance Rationale: Accounting provides quantitative financial data to
evaluate economic activities and support decision-making for stakeholders, distinguishing it
from non-financial aspects like marketing.
2. Which financial statement summarizes cash collections and expenditures from operating,
investing, and financing activities? Statement of cash flows Rationale: The statement of cash
flows categorizes cash movements into three activities to assess liquidity and solvency,
reconciling net income to actual cash changes.
3. Which users have primary concern with an organization's ability to provide healthcare
benefits? Employees Rationale: Employees depend on financial statements to gauge the
company's stability for benefits like healthcare, unlike investors who prioritize returns or
creditors who focus on repayment.
, 4. What has had the most significant impact on accounting practices? Information
technology Rationale: IT advancements (e.g., ERP systems, AI-driven audits) have automated
processes, improved accuracy, and enabled real-time reporting, transforming traditional manual
accounting.
5. Which body regulates a certified public accounting firm's audit practices for large
publicly traded companies? Public Company Accounting Oversight Board (PCAOB)
Rationale: Established by the Sarbanes-Oxley Act, PCAOB oversees audits of public companies
to ensure independence and compliance, distinct from FASB (standards) or AICPA (CPAs).
6. What is the primary difference between financial and managerial accounting? Financial
accounting is external and GAAP-based; managerial accounting is internal and flexible
Rationale: Financial accounting reports to external stakeholders using standardized GAAP rules,
while managerial accounting aids internal decisions with customized, forward-looking data.
7. What does the balance sheet represent? A snapshot of assets, liabilities, and equity at a
specific point in time Rationale: It reflects financial position via Assets = Liabilities + Equity,
helping evaluate solvency and resource allocation.
8. What is the purpose of the income statement? To summarize revenues, expenses, and net
income over a period Rationale: It measures profitability and performance, providing insights
into operational efficiency and earnings.
9. What does the statement of stockholders' equity track? Changes in equity from retained
earnings, dividends, and stock transactions Rationale: It reconciles beginning and ending
equity, explaining impacts from net income, dividends, and capital changes.
10. What is the role of the statement of cash flows? To show cash inflows and outflows from
operating, investing, and financing activities Rationale: It highlights cash generation and
usage, revealing liquidity issues not visible in accrual-based income statements.
Section 2: Financial Accounting Principles and Financial Statements (15 Questions)
