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WGU C213 EXAM 2026 100% PASS ASSURED
GUARANTEE.
Trading on the NYSE is executed without a
specialist (i.e. a market maker). (T/F) -
correct answer- F
Stocks and bonds are two types of financial
instruments (T/F) - correct answer- T
The matching principle in accrual accounting
requires that:
a. Revenues be recognized when the earnings
process is complete and matches expenses to
revenues recognized.
b. Expenses are matched to the year in which
they are incurred
c. Revenues are matched to the year in which
they are booked
d. Revenues should be large enough to match
expenses - correct answer- a
A basic equation for the balance sheet is:
a. Equity = Assets - Liabilities
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b. Liabilities = Equity + Assets
c. Assets = Liabilities - Equity
d. Assets = Equity - Liabilities - correct
answer- a
Why is the Balance Sheet known as a permanent
statement?
a. Because the statement is sent to the SEC.
b. Because the other statements are reset at
the end of the fiscal year
c. Because it is printed out and archived
d. Because it persists in the minds of the
shareholders. - correct answer- b
How do you calculate the change in Retained
Earnings?
a. Ending Retained Earnings - Change in Cash
b. EBIT divided by Total Assets + Dividends
c. EBIT - Change in Cash - Dividends
d. Net Income - Dividends - correct answer- d
Which of the following is generally true?
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a. Gross Profit and Operating Income are the
same
b. Cost of Goods Sold + Operating Expenses =
Net Income
c. Operating Income and EBIT are the same
d. EBIT + Income Taxes = Net income - correct
answer- c
Which components are part of total assets?
a. Cash, Accounts Receivable, Short Term Debt
b. Cash Accounts Receivable, Inventory, Long
Term Assets
c. Accounts Payable, Long Term Assets, Long
Term Debt
d. Accounts Payable, Net Income, Equity -
correct answer- b
Which components are part of current assets?
a. Cash, Accounts Receivable, Property Plant &
Equipment
b. Accounts Receivable, Accounts Payable,
Inventory
c. Long Term Debt, Property Plant & Equipment,
Common Stock
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d. Inventory, Cash, Accounts Receivable, Short
Term Investments - correct answer- d
Which components are part of Total
Liabilities?
a. Accounts Payable, Accounts Receivable,
Short Term Debt
b. Long Term Debt, Common Stock, Retained
Earnings
c. Bonds, Accounts Payable, Mortgage
d. Common Stock, Long Term Debt, Short Term
Investments - correct answer- c
When Fixed Assets increase what happens to
Cash?
a. Cash stays the same
b. Cash increases
c. Cash decreases
d. Assets decrease - correct answer- c
Which is the purpose of the statement of cash
flows?
a. serves as the replacement for the income
statement and balance sheet
WGU C213 EXAM 2026 100% PASS ASSURED
GUARANTEE.
Trading on the NYSE is executed without a
specialist (i.e. a market maker). (T/F) -
correct answer- F
Stocks and bonds are two types of financial
instruments (T/F) - correct answer- T
The matching principle in accrual accounting
requires that:
a. Revenues be recognized when the earnings
process is complete and matches expenses to
revenues recognized.
b. Expenses are matched to the year in which
they are incurred
c. Revenues are matched to the year in which
they are booked
d. Revenues should be large enough to match
expenses - correct answer- a
A basic equation for the balance sheet is:
a. Equity = Assets - Liabilities
,2 | Page
b. Liabilities = Equity + Assets
c. Assets = Liabilities - Equity
d. Assets = Equity - Liabilities - correct
answer- a
Why is the Balance Sheet known as a permanent
statement?
a. Because the statement is sent to the SEC.
b. Because the other statements are reset at
the end of the fiscal year
c. Because it is printed out and archived
d. Because it persists in the minds of the
shareholders. - correct answer- b
How do you calculate the change in Retained
Earnings?
a. Ending Retained Earnings - Change in Cash
b. EBIT divided by Total Assets + Dividends
c. EBIT - Change in Cash - Dividends
d. Net Income - Dividends - correct answer- d
Which of the following is generally true?
,3 | Page
a. Gross Profit and Operating Income are the
same
b. Cost of Goods Sold + Operating Expenses =
Net Income
c. Operating Income and EBIT are the same
d. EBIT + Income Taxes = Net income - correct
answer- c
Which components are part of total assets?
a. Cash, Accounts Receivable, Short Term Debt
b. Cash Accounts Receivable, Inventory, Long
Term Assets
c. Accounts Payable, Long Term Assets, Long
Term Debt
d. Accounts Payable, Net Income, Equity -
correct answer- b
Which components are part of current assets?
a. Cash, Accounts Receivable, Property Plant &
Equipment
b. Accounts Receivable, Accounts Payable,
Inventory
c. Long Term Debt, Property Plant & Equipment,
Common Stock
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d. Inventory, Cash, Accounts Receivable, Short
Term Investments - correct answer- d
Which components are part of Total
Liabilities?
a. Accounts Payable, Accounts Receivable,
Short Term Debt
b. Long Term Debt, Common Stock, Retained
Earnings
c. Bonds, Accounts Payable, Mortgage
d. Common Stock, Long Term Debt, Short Term
Investments - correct answer- c
When Fixed Assets increase what happens to
Cash?
a. Cash stays the same
b. Cash increases
c. Cash decreases
d. Assets decrease - correct answer- c
Which is the purpose of the statement of cash
flows?
a. serves as the replacement for the income
statement and balance sheet
