WGU C213 OBJECTIVE ASSESSMENT
ACCOUNTING FOR DECISION MAKERS 2
ACTUAL EXAM 2026 COMPLETE SOLVED
QUESTIONS
◉ The number of race participants and spectators. Answer: The
director of a marathon race wants to assign the cost of having police
officers along the race route to manage crowd control.
Which consideration is an appropriate cost driver?
◉ The price of Product B should be increased. Answer: Company A
calculated the following information under traditional and activity-
based costing for the production and sale of 1,000 units of Product
B:
Traditional ABC
Sales $100,000 $100,000
Cost of goods sold $70,000 $110,000
Gross margin $30,000 ($10,000)
Which decision should be made about the selling price of Product B?
,◉ Profits
Cash. Answer: Which two concepts are studied in cost-volume-profit
analysis?
◉ Total fixed costs will stay the same.
Fixed costs per unit will decrease.. Answer: What are two impacts on
costs as sales volume increases?
◉ Credit limits were increased for all customers. Answer: A
company is experiencing an increase in their bad debt expense.
Which change in credit policy would cause this increase?
◉ Overstates owner's equity. Answer: If a company does NOT record
accrued wages expense at the end of the year, how does this affect
the year-end financial statements?
◉ Overstates assets. Answer: Failure to record the used portion of
supplies on hand during the month has the following effect on the
financial statements prepared at the end of the month
◉ Safeguards. Answer: Which of the following is NOT a reason for
problems occurring in the financial statements?
,◉ Failure to record depreciation expense. Answer: Which one of the
following errors causes net income to be overstated?
◉ Understatement of total assets and total liabilities. Answer:
Recording the payment of an accounts payable twice will result in?
◉ Earnings management. Answer: Which of the following is NOT
one of the major safeguards in the financial reporting process?
◉ Make sure a company only records profitable transactions.
Answer: Which of the following is NOT an objective of the
accounting system?
◉ Describe in detail the internal controls of the company. Answer:
The Sarbanes-Oxley act requires that an internal control report be
included in every company's annual report. Which one of the
following is NOT one of the requirements of the internal control
report?
◉ The Securities and Exchange Commissions regulations are
followed. Answer: Which of the following is NOT one of the major
concerns of most company's have when they are designing internal
controls?
, ◉ Auditing system. Answer: Which of the following is NOT one of the
five basic categories of internal control?
◉ Timing transactions so that large one-time gains and losses occur
in the same quarter.. Answer: Earnings management through
strategic matching is exemplified by
◉ Changing the useful life of a depreciable asset and fully disclosing
it in the notes. Answer: Earnings management through aggressive
accounting is best exemplified by
◉ Recording expenses as assets. Answer: Which of the following
typically involves the use of non-GAAP accounting?
◉ Changing the interest rate used in accounting for leases without
describing the change in the notes to financial statements.. Answer:
Earnings management through deceptive accounting is best
exemplified by
◉ Make loans to executive officers and directors. Answer: Which of
the following does Sarbanes-Oxley NOT require management to do?
◉ Audit committee. Answer: According to Sarbanes-Oxley who are
auditors required to report to and be retained by?
ACCOUNTING FOR DECISION MAKERS 2
ACTUAL EXAM 2026 COMPLETE SOLVED
QUESTIONS
◉ The number of race participants and spectators. Answer: The
director of a marathon race wants to assign the cost of having police
officers along the race route to manage crowd control.
Which consideration is an appropriate cost driver?
◉ The price of Product B should be increased. Answer: Company A
calculated the following information under traditional and activity-
based costing for the production and sale of 1,000 units of Product
B:
Traditional ABC
Sales $100,000 $100,000
Cost of goods sold $70,000 $110,000
Gross margin $30,000 ($10,000)
Which decision should be made about the selling price of Product B?
,◉ Profits
Cash. Answer: Which two concepts are studied in cost-volume-profit
analysis?
◉ Total fixed costs will stay the same.
Fixed costs per unit will decrease.. Answer: What are two impacts on
costs as sales volume increases?
◉ Credit limits were increased for all customers. Answer: A
company is experiencing an increase in their bad debt expense.
Which change in credit policy would cause this increase?
◉ Overstates owner's equity. Answer: If a company does NOT record
accrued wages expense at the end of the year, how does this affect
the year-end financial statements?
◉ Overstates assets. Answer: Failure to record the used portion of
supplies on hand during the month has the following effect on the
financial statements prepared at the end of the month
◉ Safeguards. Answer: Which of the following is NOT a reason for
problems occurring in the financial statements?
,◉ Failure to record depreciation expense. Answer: Which one of the
following errors causes net income to be overstated?
◉ Understatement of total assets and total liabilities. Answer:
Recording the payment of an accounts payable twice will result in?
◉ Earnings management. Answer: Which of the following is NOT
one of the major safeguards in the financial reporting process?
◉ Make sure a company only records profitable transactions.
Answer: Which of the following is NOT an objective of the
accounting system?
◉ Describe in detail the internal controls of the company. Answer:
The Sarbanes-Oxley act requires that an internal control report be
included in every company's annual report. Which one of the
following is NOT one of the requirements of the internal control
report?
◉ The Securities and Exchange Commissions regulations are
followed. Answer: Which of the following is NOT one of the major
concerns of most company's have when they are designing internal
controls?
, ◉ Auditing system. Answer: Which of the following is NOT one of the
five basic categories of internal control?
◉ Timing transactions so that large one-time gains and losses occur
in the same quarter.. Answer: Earnings management through
strategic matching is exemplified by
◉ Changing the useful life of a depreciable asset and fully disclosing
it in the notes. Answer: Earnings management through aggressive
accounting is best exemplified by
◉ Recording expenses as assets. Answer: Which of the following
typically involves the use of non-GAAP accounting?
◉ Changing the interest rate used in accounting for leases without
describing the change in the notes to financial statements.. Answer:
Earnings management through deceptive accounting is best
exemplified by
◉ Make loans to executive officers and directors. Answer: Which of
the following does Sarbanes-Oxley NOT require management to do?
◉ Audit committee. Answer: According to Sarbanes-Oxley who are
auditors required to report to and be retained by?
