WGU C213 ACCOUNTING FOR DECISION
MAKERS EXAM QUESTIONS AND ANSWERS
LATEST () (VERIFIED ANSWERS)
Here is a comprehensive 105-question exam for WGU C213: Accounting for Decision Makers.
It covers the entire curriculum across financial accounting, managerial accounting, control
systems, and financial statement analysis.
Table of Contents
1. Section 1: Core Concepts & Principles (Questions 1–35)
2. Section 2: The Primary Financial Statements (Questions 36–70)
3. Section 3: Applied Scenarios & Managerial Decision-Making (Questions 71–90)
4. Section 4: Short-Answer & Review Questions (Questions 91–105)
5. Answer Key & Detailed Rationales
Section 1: Core Concepts & Principles
1. What is the primary focus of accounting?
A. Measuring customer satisfaction
B. Assessing environmental impact
C. Measuring, recording, and communicating financial performance
D. Predicting market trends
2. Which standard-setting body establishes Generally Accepted Accounting Principles
(GAAP) in the United States?
A. IASB
B. SEC
C. FASB
,D. AICPA
3. Which accounting principle dictates that expenses should be recognized 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
4. What is the primary difference between financial accounting and managerial accounting?
A. Financial accounting is forward-looking; managerial is historical.
B. Financial accounting is for internal users; managerial is for external users.
C. Financial accounting follows GAAP and focuses on external reporting; managerial accounting
focuses on internal decision-making.
D. Managerial accounting is strictly required by the SEC.
5. The fundamental accounting equation is expressed as:
A. Assets + Liabilities = Owners' Equity
B. Assets = Liabilities + Owners' Equity
C. Revenues − Expenses = Net Income
D. Assets = Liabilities − Owners' Equity
6. Which group relies heavily on financial statements to evaluate employee healthcare and
pension fulfillment capability?
A. Suppliers
B. Competitors
C. Employees
D. Regulatory agencies
7. Under accrual accounting, revenue is recognized when:
A. Cash is received from the customer
B. The contract is signed
C. The performance obligation is satisfied
, D. An invoice is sent to the customer
8. Which internal control concept segregates recordkeeping from physical custody of
assets?
A. Safeguarding assets
B. Separation of duties
C. Independent verification
D. Proper authorization
9. What is the purpose of Sarbanes-Oxley Act (SOX) Section 404?
A. To regulate corporate tax rates
B. To mandate internal control assessments and reporting by management and auditors
C. To legalize international trade tariffs
D. To establish accounting standards for non-profit entities
10. Which type of account increases with a credit entry?
A. Assets
B. Dividends
C. Liabilities and Owners' Equity
D. Expenses
11. Inventory valuation using FIFO results in higher net income during periods of rising
prices because:
A. Older, cheaper costs are matched against current revenues
B. Newer, higher costs are matched against current revenues
C. Ending inventory is understated
D. Cost of goods sold is overstated
12. The LIFO reserve represents the difference between inventory costs calculated using:
A. LIFO and Average Cost
B. LIFO and FIFO
C. Market Value and Historical Cost
D. LIFO and Net Realizable Value
MAKERS EXAM QUESTIONS AND ANSWERS
LATEST () (VERIFIED ANSWERS)
Here is a comprehensive 105-question exam for WGU C213: Accounting for Decision Makers.
It covers the entire curriculum across financial accounting, managerial accounting, control
systems, and financial statement analysis.
Table of Contents
1. Section 1: Core Concepts & Principles (Questions 1–35)
2. Section 2: The Primary Financial Statements (Questions 36–70)
3. Section 3: Applied Scenarios & Managerial Decision-Making (Questions 71–90)
4. Section 4: Short-Answer & Review Questions (Questions 91–105)
5. Answer Key & Detailed Rationales
Section 1: Core Concepts & Principles
1. What is the primary focus of accounting?
A. Measuring customer satisfaction
B. Assessing environmental impact
C. Measuring, recording, and communicating financial performance
D. Predicting market trends
2. Which standard-setting body establishes Generally Accepted Accounting Principles
(GAAP) in the United States?
A. IASB
B. SEC
C. FASB
,D. AICPA
3. Which accounting principle dictates that expenses should be recognized 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
4. What is the primary difference between financial accounting and managerial accounting?
A. Financial accounting is forward-looking; managerial is historical.
B. Financial accounting is for internal users; managerial is for external users.
C. Financial accounting follows GAAP and focuses on external reporting; managerial accounting
focuses on internal decision-making.
D. Managerial accounting is strictly required by the SEC.
5. The fundamental accounting equation is expressed as:
A. Assets + Liabilities = Owners' Equity
B. Assets = Liabilities + Owners' Equity
C. Revenues − Expenses = Net Income
D. Assets = Liabilities − Owners' Equity
6. Which group relies heavily on financial statements to evaluate employee healthcare and
pension fulfillment capability?
A. Suppliers
B. Competitors
C. Employees
D. Regulatory agencies
7. Under accrual accounting, revenue is recognized when:
A. Cash is received from the customer
B. The contract is signed
C. The performance obligation is satisfied
, D. An invoice is sent to the customer
8. Which internal control concept segregates recordkeeping from physical custody of
assets?
A. Safeguarding assets
B. Separation of duties
C. Independent verification
D. Proper authorization
9. What is the purpose of Sarbanes-Oxley Act (SOX) Section 404?
A. To regulate corporate tax rates
B. To mandate internal control assessments and reporting by management and auditors
C. To legalize international trade tariffs
D. To establish accounting standards for non-profit entities
10. Which type of account increases with a credit entry?
A. Assets
B. Dividends
C. Liabilities and Owners' Equity
D. Expenses
11. Inventory valuation using FIFO results in higher net income during periods of rising
prices because:
A. Older, cheaper costs are matched against current revenues
B. Newer, higher costs are matched against current revenues
C. Ending inventory is understated
D. Cost of goods sold is overstated
12. The LIFO reserve represents the difference between inventory costs calculated using:
A. LIFO and Average Cost
B. LIFO and FIFO
C. Market Value and Historical Cost
D. LIFO and Net Realizable Value
