WGU C213 PA & OA Study Guide |2025-2026 LATEST UPDATED |REAL
EXAM COMPLETE QUESTIONS AND ANSWERS | 100% RATED
CORRECT | 100% VERFIED | ALREADY GRADED A+
The Public Company Accounting Oversight Board (PACOB) - (answer)Which body regulates a
certified public accounting firm's audit practices when the firm is auditing a large publicly traded
company?
Ownership and Debt - (answer)What two items of information are revealed on the balance sheet?
Reliable - (answer)Information that can be verified
Relevant - (answer)Information having to do with the matter at hand
Material - (answer)Information that is important enough to make a difference
Conservatism - (answer)Information related to recognizing losses as they occur
The indirect method is more popular among large U.S. companies - (answer)What is known
about the direct and indirect methods of preparing statements of cash flow?
,They search for and investigate fraud.
&
They review financial records and internal controls. - (answer)Which actions do internal auditors
perform to assist in maintaining the integrity of financial statements?
They ensure that financial statement users are provided with reliable information to use in
decision making - (answer)What is a significant role of the U.S. Securities and Exchange
Commission (SEC) in financial reporting?
Differential cost - (answer)What is a cost that will change in the future based upon the decision
made?
Administrative expenses &
Selling expenses - (answer)Which are examples are period costs?
Salary cost of the receptionist
Advertising cost - (answer)A company manufactures custom-built wooden bookshelves.
,Which two costs would the company classify as period costs?
Answer Choices: Wood cost, Salary cost of the craftsperson, Salary cost of the receptionist,
Advertising cost
Direct labor costs
Overhead costs - (answer)Which two costs are included when calculating inventory costs?
A company produces five different products. The products are highly differentiated and have
significantly different demands for their use of overhead costs. - (answer)In which scenario
would activity-based costing be more appropriate than traditional costing?
Batch-level activities - (answer)Which category of ABC activities are machine setup and
material movement costs associated with?
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
Level of Activity - (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?
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
Failure to record depreciation expense - (answer)Which one of the following errors causes net
income to be overstated?
EXAM COMPLETE QUESTIONS AND ANSWERS | 100% RATED
CORRECT | 100% VERFIED | ALREADY GRADED A+
The Public Company Accounting Oversight Board (PACOB) - (answer)Which body regulates a
certified public accounting firm's audit practices when the firm is auditing a large publicly traded
company?
Ownership and Debt - (answer)What two items of information are revealed on the balance sheet?
Reliable - (answer)Information that can be verified
Relevant - (answer)Information having to do with the matter at hand
Material - (answer)Information that is important enough to make a difference
Conservatism - (answer)Information related to recognizing losses as they occur
The indirect method is more popular among large U.S. companies - (answer)What is known
about the direct and indirect methods of preparing statements of cash flow?
,They search for and investigate fraud.
&
They review financial records and internal controls. - (answer)Which actions do internal auditors
perform to assist in maintaining the integrity of financial statements?
They ensure that financial statement users are provided with reliable information to use in
decision making - (answer)What is a significant role of the U.S. Securities and Exchange
Commission (SEC) in financial reporting?
Differential cost - (answer)What is a cost that will change in the future based upon the decision
made?
Administrative expenses &
Selling expenses - (answer)Which are examples are period costs?
Salary cost of the receptionist
Advertising cost - (answer)A company manufactures custom-built wooden bookshelves.
,Which two costs would the company classify as period costs?
Answer Choices: Wood cost, Salary cost of the craftsperson, Salary cost of the receptionist,
Advertising cost
Direct labor costs
Overhead costs - (answer)Which two costs are included when calculating inventory costs?
A company produces five different products. The products are highly differentiated and have
significantly different demands for their use of overhead costs. - (answer)In which scenario
would activity-based costing be more appropriate than traditional costing?
Batch-level activities - (answer)Which category of ABC activities are machine setup and
material movement costs associated with?
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
Level of Activity - (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?
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
Failure to record depreciation expense - (answer)Which one of the following errors causes net
income to be overstated?
