1
Accounting for Decision Makers C213
2025/2026 Exam Questions and
Corresponding Answers with Surety of
100% Pass Mark
What does accounting focus on? - 🧠 ANSWER ✔✔The impact a business's
activities have on its overall financial performance
Which report summarizes cash collections and cash expenditures from operating,
investing, and financing activities over a period of time? - 🧠 ANSWER
✔✔Statement of cash flows
Which users would have a primary concern with an organization's ability to
provide healthcare benefits? - 🧠 ANSWER ✔✔Employees
Which benefit does a corporation gain by following Generally Accepted
Accounting Principles (GAPP)? - 🧠 ANSWER ✔✔An increase in its compatibility
to other companies
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
1
STATEMENT. ALL RIGHTS RESERVED
,2
Which body regulates a certified public accounting firm's audit practices when the
firm is auditing a large publicly traded company? - 🧠 ANSWER ✔✔The Public
Company Accounting Oversight Board (PACOB)
What has had the most significant impact on Accounting practices? - 🧠 ANSWER
✔✔Information technology
What two items of information are revealed on the balance sheet? - 🧠 ANSWER
✔✔Ownership and Debt
Which term is defined as the residual in the net assets of a company? - 🧠 ANSWER
✔✔Owners equity
Which situation should result in revenue recognition on the income statement for
the year ending 12/31/14 if the firm is using accrual accounting? - 🧠 ANSWER
✔✔In 2014, a company provides services to a customer for which cash will be
collected the next year (2015).
Which category on the statement of cash flows summarizes cash receipts and
payments to owners and creditors of the company? - 🧠 ANSWER ✔✔Cash from
financing activities
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
,3
Where would an investor find a summary of a company's significant accounting
policies? - 🧠 ANSWER ✔✔In the notes to financial statements
Which assurance does an external audit report provide for its readers? - 🧠
ANSWER ✔✔The company's financial statements fairly reflect its financial
position
Information that can be verified - 🧠 ANSWER ✔✔Reliable
Information having to do with the matter at hand - 🧠 ANSWER ✔✔Relevant
Information that is important enough to make a difference - 🧠 ANSWER
✔✔Material
Information related to recognizing losses as they occur - 🧠 ANSWER
✔✔Conservatism
What is consistent with a continual decline in gross profit if the firm's cost of
goods sold remains the same? - 🧠 ANSWER ✔✔Continual decrease in sales
Which form of debt should be reported in the long-term liability category? - 🧠
ANSWER ✔✔Notes payable expected to be paid in 18 months
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
, 4
Which values affect the measurement of net income? - 🧠 ANSWER ✔✔Operating
expenses &
Ordinary gains and losses
Which items' subtotals are included in a multi-step income statement? - 🧠
ANSWER ✔✔Gross profit &
Income from operations
What is a common category in a statement of cash flows? - 🧠 ANSWER ✔✔Cash
from investing activities
Which cash flow category would include "cash received from investors"? - 🧠
ANSWER ✔✔Cash from financing activities
Which item is an investing activity? - 🧠 ANSWER ✔✔Cash payments for purchase
of plant assets
What impact does the sale of equipment have on the statement of cash flows? - 🧠
ANSWER ✔✔Increase in cash from investing activities
What is known about the direct and indirect methods of preparing statements of
cash flow? - 🧠 ANSWER ✔✔The indirect method is more popular among large
U.S. companies
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
4
STATEMENT. ALL RIGHTS RESERVED
Accounting for Decision Makers C213
2025/2026 Exam Questions and
Corresponding Answers with Surety of
100% Pass Mark
What does accounting focus on? - 🧠 ANSWER ✔✔The impact a business's
activities have on its overall financial performance
Which report summarizes cash collections and cash expenditures from operating,
investing, and financing activities over a period of time? - 🧠 ANSWER
✔✔Statement of cash flows
Which users would have a primary concern with an organization's ability to
provide healthcare benefits? - 🧠 ANSWER ✔✔Employees
Which benefit does a corporation gain by following Generally Accepted
Accounting Principles (GAPP)? - 🧠 ANSWER ✔✔An increase in its compatibility
to other companies
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
1
STATEMENT. ALL RIGHTS RESERVED
,2
Which body regulates a certified public accounting firm's audit practices when the
firm is auditing a large publicly traded company? - 🧠 ANSWER ✔✔The Public
Company Accounting Oversight Board (PACOB)
What has had the most significant impact on Accounting practices? - 🧠 ANSWER
✔✔Information technology
What two items of information are revealed on the balance sheet? - 🧠 ANSWER
✔✔Ownership and Debt
Which term is defined as the residual in the net assets of a company? - 🧠 ANSWER
✔✔Owners equity
Which situation should result in revenue recognition on the income statement for
the year ending 12/31/14 if the firm is using accrual accounting? - 🧠 ANSWER
✔✔In 2014, a company provides services to a customer for which cash will be
collected the next year (2015).
Which category on the statement of cash flows summarizes cash receipts and
payments to owners and creditors of the company? - 🧠 ANSWER ✔✔Cash from
financing activities
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
,3
Where would an investor find a summary of a company's significant accounting
policies? - 🧠 ANSWER ✔✔In the notes to financial statements
Which assurance does an external audit report provide for its readers? - 🧠
ANSWER ✔✔The company's financial statements fairly reflect its financial
position
Information that can be verified - 🧠 ANSWER ✔✔Reliable
Information having to do with the matter at hand - 🧠 ANSWER ✔✔Relevant
Information that is important enough to make a difference - 🧠 ANSWER
✔✔Material
Information related to recognizing losses as they occur - 🧠 ANSWER
✔✔Conservatism
What is consistent with a continual decline in gross profit if the firm's cost of
goods sold remains the same? - 🧠 ANSWER ✔✔Continual decrease in sales
Which form of debt should be reported in the long-term liability category? - 🧠
ANSWER ✔✔Notes payable expected to be paid in 18 months
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
, 4
Which values affect the measurement of net income? - 🧠 ANSWER ✔✔Operating
expenses &
Ordinary gains and losses
Which items' subtotals are included in a multi-step income statement? - 🧠
ANSWER ✔✔Gross profit &
Income from operations
What is a common category in a statement of cash flows? - 🧠 ANSWER ✔✔Cash
from investing activities
Which cash flow category would include "cash received from investors"? - 🧠
ANSWER ✔✔Cash from financing activities
Which item is an investing activity? - 🧠 ANSWER ✔✔Cash payments for purchase
of plant assets
What impact does the sale of equipment have on the statement of cash flows? - 🧠
ANSWER ✔✔Increase in cash from investing activities
What is known about the direct and indirect methods of preparing statements of
cash flow? - 🧠 ANSWER ✔✔The indirect method is more popular among large
U.S. companies
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
4
STATEMENT. ALL RIGHTS RESERVED
