WGU C213 ACCOUNTING FOR DECISION
MAKERS
OBJECTIVE ASSESSMENT EXAM| 2026 latest
updated test
1. A company provides a financial statement that shows its financial position at a
specific point in time. Which financial statement is this?
a) Income statement
b) Statement of cash flows
c) Balance sheet
d) Statement of retained earnings
Correct Answer: c) Balance sheet
2. Refer to the image. The agent was assessed a financial statement containing
"Cash" and "Accounts Receivable" under assets, and "Accounts Payable" under
liabilities. Which statement was being assessed?
a) Income statement
b) Balance sheet
c) Statement of cash flows
,d) Statement of shareholders' equity
Correct Answer: b) Balance sheet
3. Which of the following accounts would appear on a balance sheet?
a) Sales revenue
b) Cost of goods sold
c) Retained earnings
d) Rent expense
Correct Answer: c) Retained earnings
4. The accounting equation is:
a) Assets = Liabilities + Revenue
b) Assets = Liabilities + Stockholders' Equity
c) Assets = Expenses + Stockholders' Equity
d) Assets = Liabilities - Stockholders' Equity
Correct Answer: b) Assets = Liabilities + Stockholders' Equity
5. Which of the following is a current asset?
a) Building
b) Equipment
c) Land
d) Inventory
Correct Answer: d) Inventory
6. A company buys inventory on credit. This transaction will:
a) Increase assets and increase liabilities
b) Increase assets and increase equity
,c) Increase liabilities and decrease equity
d) Decrease assets and decrease liabilities
Correct Answer: a) Increase assets and increase liabilities
7. Which financial statement covers a period of time (e.g., "for the year ended
December 31, 2025")?
a) Balance sheet
b) Income statement
c) Balance sheet and income statement
d) Balance sheet and statement of cash flows
Correct Answer: b) Income statement
8. The primary purpose of the income statement is to:
a) Show a company's financial position at a point in time
b) Show a company's profitability over a period of time
c) Show a company's cash inflows and outflows
d) Show changes in retained earnings
Correct Answer: b) Show a company's profitability over a period of time
9. According to the image, which of the following is listed as a liability?
a) Inventory
b) Prepaid expenses
c) Accrued expenses
d) Other assets
Correct Answer: c) Accrued expenses
, 10. Which principle guides the recording of expenses in the same period as the
revenues they helped generate?
a) Historical cost principle
b) Revenue recognition principle
c) Matching principle
d) Full disclosure principle
Correct Answer: c) Matching principle
11. Which of the following is NOT an operating asset?
a) Cash
b) Accounts receivable
c) Land held for future expansion
d) Inventory
Correct Answer: c) Land held for future expansion
12. Dividends paid to shareholders would appear on which statement?
a) Income statement
b) Balance sheet
c) Statement of retained earnings
d) Statement of cash flows only
Correct Answer: c) Statement of retained earnings
13. The balance sheet equation can be restated as:
a) Assets - Liabilities = Stockholders' Equity
b) Assets + Liabilities = Stockholders' Equity
c) Assets = Stockholders' Equity - Liabilities
MAKERS
OBJECTIVE ASSESSMENT EXAM| 2026 latest
updated test
1. A company provides a financial statement that shows its financial position at a
specific point in time. Which financial statement is this?
a) Income statement
b) Statement of cash flows
c) Balance sheet
d) Statement of retained earnings
Correct Answer: c) Balance sheet
2. Refer to the image. The agent was assessed a financial statement containing
"Cash" and "Accounts Receivable" under assets, and "Accounts Payable" under
liabilities. Which statement was being assessed?
a) Income statement
b) Balance sheet
c) Statement of cash flows
,d) Statement of shareholders' equity
Correct Answer: b) Balance sheet
3. Which of the following accounts would appear on a balance sheet?
a) Sales revenue
b) Cost of goods sold
c) Retained earnings
d) Rent expense
Correct Answer: c) Retained earnings
4. The accounting equation is:
a) Assets = Liabilities + Revenue
b) Assets = Liabilities + Stockholders' Equity
c) Assets = Expenses + Stockholders' Equity
d) Assets = Liabilities - Stockholders' Equity
Correct Answer: b) Assets = Liabilities + Stockholders' Equity
5. Which of the following is a current asset?
a) Building
b) Equipment
c) Land
d) Inventory
Correct Answer: d) Inventory
6. A company buys inventory on credit. This transaction will:
a) Increase assets and increase liabilities
b) Increase assets and increase equity
,c) Increase liabilities and decrease equity
d) Decrease assets and decrease liabilities
Correct Answer: a) Increase assets and increase liabilities
7. Which financial statement covers a period of time (e.g., "for the year ended
December 31, 2025")?
a) Balance sheet
b) Income statement
c) Balance sheet and income statement
d) Balance sheet and statement of cash flows
Correct Answer: b) Income statement
8. The primary purpose of the income statement is to:
a) Show a company's financial position at a point in time
b) Show a company's profitability over a period of time
c) Show a company's cash inflows and outflows
d) Show changes in retained earnings
Correct Answer: b) Show a company's profitability over a period of time
9. According to the image, which of the following is listed as a liability?
a) Inventory
b) Prepaid expenses
c) Accrued expenses
d) Other assets
Correct Answer: c) Accrued expenses
, 10. Which principle guides the recording of expenses in the same period as the
revenues they helped generate?
a) Historical cost principle
b) Revenue recognition principle
c) Matching principle
d) Full disclosure principle
Correct Answer: c) Matching principle
11. Which of the following is NOT an operating asset?
a) Cash
b) Accounts receivable
c) Land held for future expansion
d) Inventory
Correct Answer: c) Land held for future expansion
12. Dividends paid to shareholders would appear on which statement?
a) Income statement
b) Balance sheet
c) Statement of retained earnings
d) Statement of cash flows only
Correct Answer: c) Statement of retained earnings
13. The balance sheet equation can be restated as:
a) Assets - Liabilities = Stockholders' Equity
b) Assets + Liabilities = Stockholders' Equity
c) Assets = Stockholders' Equity - Liabilities
