,WGU C213 Accounting for Decision Makers Objective Assessment | OA V1 and V2 | Questions and
Answers | 2026 Updated | 100% Correct.
🔹 SECTION A: Financial Foundations (Q1–15)
1. What is the primary focus of accounting?
A. Customer satisfaction
B. Environmental impact
C. Financial performance of a business
D. Public image
Answer: C
2. What is the main benefit of GAAP?
A. Reduces taxes
B. Increases profits
C. Improves comparability
D. Eliminates liabilities
Answer: C
3. Which organization sets accounting standards?
A. SEC
B. PCAOB
C. FASB
D. IRS
Answer: C
4. Which organization regulates auditors of public companies?
A. SEC
B. PCAOB
C. FASB
D. GAAP
Answer: B
5. Which equation represents the balance sheet?
A. Revenue – Expenses = Profit
B. Assets = Liabilities + Equity
,C. Cash = Revenue – Expenses
D. Assets = Revenue + Expenses
Answer: B
6. What does equity represent?
A. Debt owed
B. Residual interest
C. Revenue
D. Expenses
Answer: B
7. What does the balance sheet show? (Select 2)
A. Revenue
B. Expenses
C. Debt
D. Ownership
Answer: C, D
8. Where are accounting policies disclosed?
A. Balance sheet
B. Income statement
C. Notes
D. Cash flow statement
Answer: C
9. What triggers revenue recognition?
A. Cash received
B. Service performed
C. Contract signed
D. Invoice sent
Answer: B
10. Long-term assets = ?
A. Current assets – Total assets
B. Total assets – Current assets
C. Liabilities – Equity
, D. Revenue – Expenses
Answer: B
11. What is owners’ equity?
A. Assets + liabilities
B. Assets – liabilities
C. Revenue – expenses
D. Cash – debt
Answer: B
12. Which is NOT a financial statement?
A. Balance sheet
B. Income statement
C. Cash flow statement
D. Budget report
Answer: D
13. What does GAAP improve?
A. Taxes
B. Comparability
C. Cash flow
D. Revenue
Answer: B
14. SEC role?
A. Set GAAP
B. Audit companies
C. Oversee reporting
D. Prepare statements
Answer: C
15. What does accounting communicate?
A. Marketing strategy
B. Financial position
C. Employee performance
Answers | 2026 Updated | 100% Correct.
🔹 SECTION A: Financial Foundations (Q1–15)
1. What is the primary focus of accounting?
A. Customer satisfaction
B. Environmental impact
C. Financial performance of a business
D. Public image
Answer: C
2. What is the main benefit of GAAP?
A. Reduces taxes
B. Increases profits
C. Improves comparability
D. Eliminates liabilities
Answer: C
3. Which organization sets accounting standards?
A. SEC
B. PCAOB
C. FASB
D. IRS
Answer: C
4. Which organization regulates auditors of public companies?
A. SEC
B. PCAOB
C. FASB
D. GAAP
Answer: B
5. Which equation represents the balance sheet?
A. Revenue – Expenses = Profit
B. Assets = Liabilities + Equity
,C. Cash = Revenue – Expenses
D. Assets = Revenue + Expenses
Answer: B
6. What does equity represent?
A. Debt owed
B. Residual interest
C. Revenue
D. Expenses
Answer: B
7. What does the balance sheet show? (Select 2)
A. Revenue
B. Expenses
C. Debt
D. Ownership
Answer: C, D
8. Where are accounting policies disclosed?
A. Balance sheet
B. Income statement
C. Notes
D. Cash flow statement
Answer: C
9. What triggers revenue recognition?
A. Cash received
B. Service performed
C. Contract signed
D. Invoice sent
Answer: B
10. Long-term assets = ?
A. Current assets – Total assets
B. Total assets – Current assets
C. Liabilities – Equity
, D. Revenue – Expenses
Answer: B
11. What is owners’ equity?
A. Assets + liabilities
B. Assets – liabilities
C. Revenue – expenses
D. Cash – debt
Answer: B
12. Which is NOT a financial statement?
A. Balance sheet
B. Income statement
C. Cash flow statement
D. Budget report
Answer: D
13. What does GAAP improve?
A. Taxes
B. Comparability
C. Cash flow
D. Revenue
Answer: B
14. SEC role?
A. Set GAAP
B. Audit companies
C. Oversee reporting
D. Prepare statements
Answer: C
15. What does accounting communicate?
A. Marketing strategy
B. Financial position
C. Employee performance
