PASS YOUR 2025 WGU C213 FINAL EXAM
ACCOUNTING FOR DECISION MAKERS ACTUAL
QUESTIONS AND VERIFIED ANSWERS, 100%
GUARANTEE PASS
1) Which of the following is the most correct definition of accounting?
a. The preservation of a systematic, quantitative record of an activity.
b. A system for providing quantitative information, primarily financial in nature, about economic
entities that is intended to be useful in making economic decisions.
c. The procedures and processes used by a company to analyze transactions and handle routine
bookkeeping tasks.
d. An entity without a profit objective, oriented toward providing services efficiently and effectively. -
ANSWER-b. A system for providing quantitative information, primarily financial in nature, about
economic entities that is intended to be useful in making economic decisions.
2) Businesses use accounting systems to
a. Analyze transactions
b. Handle routine bookkeeping tasks
c. Evaluate the performance and health of the business
d. All of the above - ANSWER-d. All of the above
3) Which of the following is NOT a function of accounting?
a. Executing sales transactions for organizations
b. Communicating economic information about organizations
c. Measuring economic information about organizations
d. Accumulating economic information about organizations - ANSWER-a. Executing sales transactions
for organizations
4) Which of the following is NOT a key component of the definition of accounting?
a. Financial
b. Decision-oriented
c. Qualitative
d. Useful - ANSWER-c. Qualitative
5) Which of the following is NOT typically true of accounting information?
a. The information relates to specific accounting entities.
b. The information is primarily financial in nature.
c. The information relates to future time periods.
d. The information is quantitative in nature. - ANSWER-d. The information is quantitative in nature.
6) Which of the following is NOT one of the three primary financial statements?
a. Balance Sheet
b. Income statement
c. Statement of cash flows
d. Statement of retained earnings - ANSWER-d. Statement of retained earnings
7) Which of the following financial statements reports a company's resources, obligations, and
owner's equity?
a. Statement of retained earnings
b. Statement of cash flows
c. Income statement
d. Balance sheet - ANSWER-d. Balance sheet
,8) Which of the following financial statements reports the excess of a company's revenues over its
expenses?
a. Statement of retained earnings
b. Statement of cash flows
c. Income statement
d. Balance sheet - ANSWER-c. Income statement
9) Which of the following financial statements reports the amount of cash collected and paid out by a
company?
a. Balance sheet
b. Statement of retained earnings
c. Statement of cash flows
d. Income statement - ANSWER-c. Statement of cash flows
10) The emphasis in financial accounting is on which of the following external user groups?
a. Management
b. Investors and creditors
c. Educators
d. Certified Public Accountants - ANSWER-b. Investors and creditors
11) The primary internal group that uses accounting information is
a. Government agencies
b. Investors
c. Management
d. Competitors - ANSWER-c. Management
12) Internal reports are generally used by
a. Lenders
b. Management
c. Employees
d. Suppliers - ANSWER-b. Management
13) Which of the following is NOT an external user of financial information?
a. Competitors
b. Suppliers
c. Customers
d. Management - ANSWER-d. Management
14) Which of the following is NOT true of the Financial Accounting Standards Board (FASB)?
a. It seeks consistency for its proposed standards
b. It consists of seven full-time members
c. It has no legal power to enforce the standards it sets
d. It is a government agency - ANSWER-d. It is a government agency
15) Generally accepted accounting principles are
a. Natural laws
b. Based on scientific proofs
c. Developed by accounting rule makers
d. None of these are correct - ANSWER-c. Developed by accounting rule makers
16) The initials GAAP stand for
a. Generally Applied Accounting Procedures
b. General Accounting Administration Practices
c. Generally Accepted Accounting Practices
d. Generally Accepted Accounting Principles - ANSWER-d. Generally Accepted Accounting Principles
,17) The current standard-setting board for accounting in the private sector in the US is the
a. Securities and Exchange Commission (SEC)
b. American Accounting Association (AAA)
c. International Accounting Standards Board (IASB)
d. Financial Accounting Standards Board (FASB) - ANSWER-d. Financial Accounting Standards Board
(FASB)
18) The organization that develops worldwide accounting standards is the
a. International Accounting Standards Board (IASB)
b. International Board of Accounting Standards (IBAS)
c. International Committee on Accounting Standards (ICAS)
d. International Accounting Standards Committee (IASC) - ANSWER-a. International Accounting
Standards Board (IASB)
19) Which of the following is NOT a service typically provided by large public accounting firms?
a. Making management decisions
b. Establishing accounting systems
c. Redesigning operating procedures
d. Performing audits - ANSWER-a. Making management decisions
20) The initials CPA stand for
a. Certified Public Auditor
b. Certified Professional Accountant
c. Certified Public Accountant
d. Certified Professional Appraiser - ANSWER-c. Certified Public Accountant
21) Standards established by the International Accounting Standards Board are referred to as
a. International Financial Accounting Standards
b. International Auditing Standards
c. International Financial Reporting Standards
d. Generally Accepted Accounting Standards - ANSWER-c. International Financial Reporting Standards
22) Which of the following organizations has specific legal authority to establish accounting standards
for publicly held companies?
a. Financial Accounting Standards Board (FASB)
b. Securities and Exchange Commission (SEC)
c. Internal Revenue Service (IRS)
d. American Institute of Certified Public Accountants (AICPA) - ANSWER-b. Securities and Exchange
Commission (SEC)
23) Which of the following is NOT a reason for the integration of worldwide accounting standards?
a. the need to evaluate investments across the world
b. the increased efficiency of financial markets
c. the theoretical necessity of a common set of accounting standards
d. the integration of the global economy - ANSWER-c. the theoretical necessity of a common set of
accounting standards
24) The International Accounting Standards Board (IASB) is charged with developing worldwide
accounting practices?
a. True
b. False - ANSWER-a. True
25) With the current state of information technology, investors outside a company are now allowed
access to a company's internal database of financial information and do their own customized
analysis of a firm's performance.
a. True
b. False - ANSWER-b. False
, 26) Increased federal oversight of the audit process resulted from the passage of the following act of
Congress -
a. Sarbanes-Oxley Act
b. Financial Reports Act
c. Access to High Standards Act
d. AGOA Acceleration Act - ANSWER-a. Sarbanes-Oxley Act
27) A borrower benefits from providing financial information regarding income and expenses in the
form of a lower interest rate on the loan because of reduced uncertainty for the lender with regard to
repayment.
a. True
b. False - ANSWER-a. True
28) Which of the following is NOT one of the three primary financial statements?
a. The Statement of Retained Earnings
b. The Balance Sheet
c. The Statement of Cash Flows
d. The Income Statement - ANSWER-a. The Statement of Retained Earnings
29) One reason for a company's preparing and providing financial statements is to reduce uncertainty
for an investor regarding the firm's future financial performance.
a. True
b. False - ANSWER-a. True
30) The idea that transactions are recorded at their exchange prices at the transaction date is referred
to as the
a. Cost principle
b. Arm's-length transaction assumption
c. Going concern assumption
d. Monetary measurement principle - ANSWER-a. Cost principle
31) Which of the following accounts is considered to be the most liquid?
a. Land
b. Accounts receivable
c. Inventory
d. Cash - ANSWER-d. Cash
32) Which of the following would be considered a long-term liability?
a. Mortgage payable
b. Land
c. Wages payable
d. Accounts payable - ANSWER-a. Mortgage payable
33) Economic resources that are owned or controlled by an enterprise are called
a. Revenues
b. Liabilities
c. Gains
d. Assets - ANSWER-d. Assets
34) Which of the following distinguishes between current and long-term assets?
a. Income statement
b. Liquidity balance sheet
c. Comparative balance sheet
d. Classified balance sheet - ANSWER-d. Classified balance sheet
ACCOUNTING FOR DECISION MAKERS ACTUAL
QUESTIONS AND VERIFIED ANSWERS, 100%
GUARANTEE PASS
1) Which of the following is the most correct definition of accounting?
a. The preservation of a systematic, quantitative record of an activity.
b. A system for providing quantitative information, primarily financial in nature, about economic
entities that is intended to be useful in making economic decisions.
c. The procedures and processes used by a company to analyze transactions and handle routine
bookkeeping tasks.
d. An entity without a profit objective, oriented toward providing services efficiently and effectively. -
ANSWER-b. A system for providing quantitative information, primarily financial in nature, about
economic entities that is intended to be useful in making economic decisions.
2) Businesses use accounting systems to
a. Analyze transactions
b. Handle routine bookkeeping tasks
c. Evaluate the performance and health of the business
d. All of the above - ANSWER-d. All of the above
3) Which of the following is NOT a function of accounting?
a. Executing sales transactions for organizations
b. Communicating economic information about organizations
c. Measuring economic information about organizations
d. Accumulating economic information about organizations - ANSWER-a. Executing sales transactions
for organizations
4) Which of the following is NOT a key component of the definition of accounting?
a. Financial
b. Decision-oriented
c. Qualitative
d. Useful - ANSWER-c. Qualitative
5) Which of the following is NOT typically true of accounting information?
a. The information relates to specific accounting entities.
b. The information is primarily financial in nature.
c. The information relates to future time periods.
d. The information is quantitative in nature. - ANSWER-d. The information is quantitative in nature.
6) Which of the following is NOT one of the three primary financial statements?
a. Balance Sheet
b. Income statement
c. Statement of cash flows
d. Statement of retained earnings - ANSWER-d. Statement of retained earnings
7) Which of the following financial statements reports a company's resources, obligations, and
owner's equity?
a. Statement of retained earnings
b. Statement of cash flows
c. Income statement
d. Balance sheet - ANSWER-d. Balance sheet
,8) Which of the following financial statements reports the excess of a company's revenues over its
expenses?
a. Statement of retained earnings
b. Statement of cash flows
c. Income statement
d. Balance sheet - ANSWER-c. Income statement
9) Which of the following financial statements reports the amount of cash collected and paid out by a
company?
a. Balance sheet
b. Statement of retained earnings
c. Statement of cash flows
d. Income statement - ANSWER-c. Statement of cash flows
10) The emphasis in financial accounting is on which of the following external user groups?
a. Management
b. Investors and creditors
c. Educators
d. Certified Public Accountants - ANSWER-b. Investors and creditors
11) The primary internal group that uses accounting information is
a. Government agencies
b. Investors
c. Management
d. Competitors - ANSWER-c. Management
12) Internal reports are generally used by
a. Lenders
b. Management
c. Employees
d. Suppliers - ANSWER-b. Management
13) Which of the following is NOT an external user of financial information?
a. Competitors
b. Suppliers
c. Customers
d. Management - ANSWER-d. Management
14) Which of the following is NOT true of the Financial Accounting Standards Board (FASB)?
a. It seeks consistency for its proposed standards
b. It consists of seven full-time members
c. It has no legal power to enforce the standards it sets
d. It is a government agency - ANSWER-d. It is a government agency
15) Generally accepted accounting principles are
a. Natural laws
b. Based on scientific proofs
c. Developed by accounting rule makers
d. None of these are correct - ANSWER-c. Developed by accounting rule makers
16) The initials GAAP stand for
a. Generally Applied Accounting Procedures
b. General Accounting Administration Practices
c. Generally Accepted Accounting Practices
d. Generally Accepted Accounting Principles - ANSWER-d. Generally Accepted Accounting Principles
,17) The current standard-setting board for accounting in the private sector in the US is the
a. Securities and Exchange Commission (SEC)
b. American Accounting Association (AAA)
c. International Accounting Standards Board (IASB)
d. Financial Accounting Standards Board (FASB) - ANSWER-d. Financial Accounting Standards Board
(FASB)
18) The organization that develops worldwide accounting standards is the
a. International Accounting Standards Board (IASB)
b. International Board of Accounting Standards (IBAS)
c. International Committee on Accounting Standards (ICAS)
d. International Accounting Standards Committee (IASC) - ANSWER-a. International Accounting
Standards Board (IASB)
19) Which of the following is NOT a service typically provided by large public accounting firms?
a. Making management decisions
b. Establishing accounting systems
c. Redesigning operating procedures
d. Performing audits - ANSWER-a. Making management decisions
20) The initials CPA stand for
a. Certified Public Auditor
b. Certified Professional Accountant
c. Certified Public Accountant
d. Certified Professional Appraiser - ANSWER-c. Certified Public Accountant
21) Standards established by the International Accounting Standards Board are referred to as
a. International Financial Accounting Standards
b. International Auditing Standards
c. International Financial Reporting Standards
d. Generally Accepted Accounting Standards - ANSWER-c. International Financial Reporting Standards
22) Which of the following organizations has specific legal authority to establish accounting standards
for publicly held companies?
a. Financial Accounting Standards Board (FASB)
b. Securities and Exchange Commission (SEC)
c. Internal Revenue Service (IRS)
d. American Institute of Certified Public Accountants (AICPA) - ANSWER-b. Securities and Exchange
Commission (SEC)
23) Which of the following is NOT a reason for the integration of worldwide accounting standards?
a. the need to evaluate investments across the world
b. the increased efficiency of financial markets
c. the theoretical necessity of a common set of accounting standards
d. the integration of the global economy - ANSWER-c. the theoretical necessity of a common set of
accounting standards
24) The International Accounting Standards Board (IASB) is charged with developing worldwide
accounting practices?
a. True
b. False - ANSWER-a. True
25) With the current state of information technology, investors outside a company are now allowed
access to a company's internal database of financial information and do their own customized
analysis of a firm's performance.
a. True
b. False - ANSWER-b. False
, 26) Increased federal oversight of the audit process resulted from the passage of the following act of
Congress -
a. Sarbanes-Oxley Act
b. Financial Reports Act
c. Access to High Standards Act
d. AGOA Acceleration Act - ANSWER-a. Sarbanes-Oxley Act
27) A borrower benefits from providing financial information regarding income and expenses in the
form of a lower interest rate on the loan because of reduced uncertainty for the lender with regard to
repayment.
a. True
b. False - ANSWER-a. True
28) Which of the following is NOT one of the three primary financial statements?
a. The Statement of Retained Earnings
b. The Balance Sheet
c. The Statement of Cash Flows
d. The Income Statement - ANSWER-a. The Statement of Retained Earnings
29) One reason for a company's preparing and providing financial statements is to reduce uncertainty
for an investor regarding the firm's future financial performance.
a. True
b. False - ANSWER-a. True
30) The idea that transactions are recorded at their exchange prices at the transaction date is referred
to as the
a. Cost principle
b. Arm's-length transaction assumption
c. Going concern assumption
d. Monetary measurement principle - ANSWER-a. Cost principle
31) Which of the following accounts is considered to be the most liquid?
a. Land
b. Accounts receivable
c. Inventory
d. Cash - ANSWER-d. Cash
32) Which of the following would be considered a long-term liability?
a. Mortgage payable
b. Land
c. Wages payable
d. Accounts payable - ANSWER-a. Mortgage payable
33) Economic resources that are owned or controlled by an enterprise are called
a. Revenues
b. Liabilities
c. Gains
d. Assets - ANSWER-d. Assets
34) Which of the following distinguishes between current and long-term assets?
a. Income statement
b. Liquidity balance sheet
c. Comparative balance sheet
d. Classified balance sheet - ANSWER-d. Classified balance sheet
