WGU C213 ACCOUNTING FOR DECISION
MAKERS FINAL PAPER 2026 TESTED
QUESTIONS AND SOLUTIONS 100% CORRECT
◉ Decrease in cash Answer: decrease in accounts payable= increase
or decrease in cash
◉ Increase in cash, because you kept your cash, you didn't pay your
interest. Answer: Increase in interest payable=increase or decrease
in cash
◉ Increase in cash, bc you didn't pay, you kept your cash Answer:
Increase in income tax payable=decrease or increase in cash?
◉ Start with net income and show the adjustments Answer: Cash
flow indirect method=
◉ Show the line by line cash flows Answer: Cash flow direct
method=
◉ SUBTRACT (uses cash) Answer: If current assets are up you
◉ ADD (preserves cash) Answer: If current assets are down you
,◉ ADD Answer: If current liabilities are up you
◉ Subtract Answer: if current liabilities are down you
◉ You subtract, this uses cash Answer: If inventory goes up...
◉ You add, saves cash Answer: If accounts payable goes up...
◉ Increase in net income and decrease in dividends Answer: What
causes retained earnings to change
◉ Beginning retained earnings + net income - dividends= ending
retained earnings Answer: Retained earnings equation
◉ Cash paid for interest and cash paid for interest in taxes Answer:
What requires a disclosure?
◉ Misappropriation of assets (stealing) and fraudulent financial
reporting (lying) Answer: What are the two types of fraud?
◉ Unintentional error, disagreement in judgment and or fraud
Answer: Inaccurate financial reports can result from:
,◉ PCAOB, it increased auditor rules, made senior executives take
personal responsibility and sign reports, enhance financial
disclosures, increase penalty for white collar crime. Answer: The
sarbane-oxley act created? What did this do?
◉ The strategic choice of accounting estimates and judgments in
orders to meet pre determined financial statement targets Answer:
Earnings management:
◉ To meet internal targets, meet external expectations, income
smoothing, and window dressing for an initial public offering (IPO)
or a loan Answer: Managers manage earnings to
◉ Registration statment, form 10-k, 10-Q, and 8k Answer: Required
filings for when auditors audit
◉ Summary data, outside company for ppl who are making
occasional decisions Answer: Financial accounting
◉ Detailed, for inside company, making daily decisions, it is a
COMPETITIVE Tool. 1. Plan. 2. Control. 3. Evaluate. Answer:
Management accounting
, ◉ Proprietary (secret), strategic and capital budgeting Answer: Long
run planning
◉ Production and process prioritizing, operational budget (profit
planning) Answer: Short run planning
◉ Measuring ACTUAL performance. Assess importance of VARIANCE
(differences ) Answer: Controlling
◉ Analyze results, provide feedback, reward performance, identify
problems Answer: Evaluating
◉ Capital budgeting Answer: Determining the best use of financial
resources is:
◉ Aspects of management accounting that deal with issues as what
additional major resources (PPE) are needed to meet a companies
long run goals Answer: Capital Budgeting
◉ Preparing operational budgets Answer: Short run planning
involves:
◉ "Break even analysis" Answer: Cost Volume profit analysis (CVP)
MAKERS FINAL PAPER 2026 TESTED
QUESTIONS AND SOLUTIONS 100% CORRECT
◉ Decrease in cash Answer: decrease in accounts payable= increase
or decrease in cash
◉ Increase in cash, because you kept your cash, you didn't pay your
interest. Answer: Increase in interest payable=increase or decrease
in cash
◉ Increase in cash, bc you didn't pay, you kept your cash Answer:
Increase in income tax payable=decrease or increase in cash?
◉ Start with net income and show the adjustments Answer: Cash
flow indirect method=
◉ Show the line by line cash flows Answer: Cash flow direct
method=
◉ SUBTRACT (uses cash) Answer: If current assets are up you
◉ ADD (preserves cash) Answer: If current assets are down you
,◉ ADD Answer: If current liabilities are up you
◉ Subtract Answer: if current liabilities are down you
◉ You subtract, this uses cash Answer: If inventory goes up...
◉ You add, saves cash Answer: If accounts payable goes up...
◉ Increase in net income and decrease in dividends Answer: What
causes retained earnings to change
◉ Beginning retained earnings + net income - dividends= ending
retained earnings Answer: Retained earnings equation
◉ Cash paid for interest and cash paid for interest in taxes Answer:
What requires a disclosure?
◉ Misappropriation of assets (stealing) and fraudulent financial
reporting (lying) Answer: What are the two types of fraud?
◉ Unintentional error, disagreement in judgment and or fraud
Answer: Inaccurate financial reports can result from:
,◉ PCAOB, it increased auditor rules, made senior executives take
personal responsibility and sign reports, enhance financial
disclosures, increase penalty for white collar crime. Answer: The
sarbane-oxley act created? What did this do?
◉ The strategic choice of accounting estimates and judgments in
orders to meet pre determined financial statement targets Answer:
Earnings management:
◉ To meet internal targets, meet external expectations, income
smoothing, and window dressing for an initial public offering (IPO)
or a loan Answer: Managers manage earnings to
◉ Registration statment, form 10-k, 10-Q, and 8k Answer: Required
filings for when auditors audit
◉ Summary data, outside company for ppl who are making
occasional decisions Answer: Financial accounting
◉ Detailed, for inside company, making daily decisions, it is a
COMPETITIVE Tool. 1. Plan. 2. Control. 3. Evaluate. Answer:
Management accounting
, ◉ Proprietary (secret), strategic and capital budgeting Answer: Long
run planning
◉ Production and process prioritizing, operational budget (profit
planning) Answer: Short run planning
◉ Measuring ACTUAL performance. Assess importance of VARIANCE
(differences ) Answer: Controlling
◉ Analyze results, provide feedback, reward performance, identify
problems Answer: Evaluating
◉ Capital budgeting Answer: Determining the best use of financial
resources is:
◉ Aspects of management accounting that deal with issues as what
additional major resources (PPE) are needed to meet a companies
long run goals Answer: Capital Budgeting
◉ Preparing operational budgets Answer: Short run planning
involves:
◉ "Break even analysis" Answer: Cost Volume profit analysis (CVP)
