WGU C213 ACCOUNTING FOR DECISION
MAKERS FINAL ACTUAL TEST PAPER 2026
COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉ Inside, Internal Answer: Managerial info is inside or outside the
business?
◉ True. Financial accounting is only outside. Managerial accounting
can be inside AND outside. Answer: True or false, managerial
accounting uses BOTH managerial and financial accounting?
◉ Outside, External, includes lenders and investors Answer:
Financial is inside or outside the business?
◉ Balance sheet, income statement, and statement of cash flows
Answer: The financial statement includes what 3 documents
◉ Balance Sheet Answer: Point in time, Assets (resources) and
liabilities (obligations)
◉ Income Statement Answer: Period of time (usually 1 year),
amount of profit made
,◉ Statement of Cash flows Answer: Period of time, where money
came from, and where it went. Inflow and outflow of cash (Cash
Flows). Change in money for the period.
◉ Balance sheet equation Answer: Assets= liabilities + equity
◉ Revenue equation Answer: Net income=Revenue - Expenses
◉ Operating, investing, and financial activities Answer: The
statement of cash flows includes what three activities
◉ FASB: Financial accounting standards. Private, no government
involvement. It is a public process, includes individuals experienced
in business and accounting (7 members). Answer: The decision
makers in the U.S. (accounting rules)
◉ GAAP: General accepted accounting principles Answer: Developed
by accounting rule makers. No Legal authority.
◉ comparability Answer: We need accounting rules for...
◉ SEC: Security and exchange commission. Located in Article 1, Sec
8, Clause 3 Answer: U.S. gov agency responsible for ensuring that
,investors, creditors, and other financial statement users are
provided with reliable information. It watches behavior in financial
markets.
◉ Registration statements (prospectus), Form 10-K, Form 10-Q, and
schedule 14A (proxy statement). These are all publicly viewable.
Answer: What forms do the SEC regulate?
◉ Oversees stock exchanges, can suspend a company, investigate
and suspect violations of the SEC rules. Answer: What does the SEC
do?
◉ YES. The SEC has legal authority to establish accounting rules and
disclosure requirements. Answer: Does the SEC have legal authority?
◉ USA congress->SEC->FASB Answer: Financial accounting rule per
the US constitution
◉ FASB: Financial accounting standards board Answer: The SEC
created the
◉ GAAP (has no legal authority) Answer: FASB created
, ◉ AIPCA: American INSTITUTE of certified public accountants.
Answer: What sets auditory standards, continue education credits,
CPA exam, and is the code of professional conduct?
◉ Only CPA's: Certified public accountants. Answer: Who is the only
person who can sign audit reports?
◉ PCAOB: Public company accounting oversight board. Answer: The
Sarbanes-Oxley Act "SOX" created?
◉ Under supervision of the SEC. Answer: PCAOB is under
supervision of?
◉ PCAOB: Public Company Accounting OVERSIGHT Board. Answer:
Who appoints members, approves actions, gov standards,
inspections, and investigations? It is a private group and OVERSEES.
AUDITORS?
◉ U.S. Gov agency that collects and regulates income taxes. Their
primary goal is to collect revenue. Answer: IRS
◉ Economic income and accounting income books. & Tax income,
and cash flow books. Answer: There are two sets of books. Tax Books
and Financial accounting books.
MAKERS FINAL ACTUAL TEST PAPER 2026
COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉ Inside, Internal Answer: Managerial info is inside or outside the
business?
◉ True. Financial accounting is only outside. Managerial accounting
can be inside AND outside. Answer: True or false, managerial
accounting uses BOTH managerial and financial accounting?
◉ Outside, External, includes lenders and investors Answer:
Financial is inside or outside the business?
◉ Balance sheet, income statement, and statement of cash flows
Answer: The financial statement includes what 3 documents
◉ Balance Sheet Answer: Point in time, Assets (resources) and
liabilities (obligations)
◉ Income Statement Answer: Period of time (usually 1 year),
amount of profit made
,◉ Statement of Cash flows Answer: Period of time, where money
came from, and where it went. Inflow and outflow of cash (Cash
Flows). Change in money for the period.
◉ Balance sheet equation Answer: Assets= liabilities + equity
◉ Revenue equation Answer: Net income=Revenue - Expenses
◉ Operating, investing, and financial activities Answer: The
statement of cash flows includes what three activities
◉ FASB: Financial accounting standards. Private, no government
involvement. It is a public process, includes individuals experienced
in business and accounting (7 members). Answer: The decision
makers in the U.S. (accounting rules)
◉ GAAP: General accepted accounting principles Answer: Developed
by accounting rule makers. No Legal authority.
◉ comparability Answer: We need accounting rules for...
◉ SEC: Security and exchange commission. Located in Article 1, Sec
8, Clause 3 Answer: U.S. gov agency responsible for ensuring that
,investors, creditors, and other financial statement users are
provided with reliable information. It watches behavior in financial
markets.
◉ Registration statements (prospectus), Form 10-K, Form 10-Q, and
schedule 14A (proxy statement). These are all publicly viewable.
Answer: What forms do the SEC regulate?
◉ Oversees stock exchanges, can suspend a company, investigate
and suspect violations of the SEC rules. Answer: What does the SEC
do?
◉ YES. The SEC has legal authority to establish accounting rules and
disclosure requirements. Answer: Does the SEC have legal authority?
◉ USA congress->SEC->FASB Answer: Financial accounting rule per
the US constitution
◉ FASB: Financial accounting standards board Answer: The SEC
created the
◉ GAAP (has no legal authority) Answer: FASB created
, ◉ AIPCA: American INSTITUTE of certified public accountants.
Answer: What sets auditory standards, continue education credits,
CPA exam, and is the code of professional conduct?
◉ Only CPA's: Certified public accountants. Answer: Who is the only
person who can sign audit reports?
◉ PCAOB: Public company accounting oversight board. Answer: The
Sarbanes-Oxley Act "SOX" created?
◉ Under supervision of the SEC. Answer: PCAOB is under
supervision of?
◉ PCAOB: Public Company Accounting OVERSIGHT Board. Answer:
Who appoints members, approves actions, gov standards,
inspections, and investigations? It is a private group and OVERSEES.
AUDITORS?
◉ U.S. Gov agency that collects and regulates income taxes. Their
primary goal is to collect revenue. Answer: IRS
◉ Economic income and accounting income books. & Tax income,
and cash flow books. Answer: There are two sets of books. Tax Books
and Financial accounting books.
