WGU C213
WGU C213 Accounting For Decision Makers Final Exam
Update: Questions & Answers (Verified Answers), 100 %
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,Question 1
Question: The name given to accounting systems designed for internal users.
A. Tax Accounting
B. Managerial Accounting
C. Cost Accounting
D. Forensic Accounting
Correct Answer: B. Managerial Accounting
Rationale: Managerial accounting focuses on providing information for internal decision-
making (budgeting, performance evaluation, etc.), unlike tax or financial accounting
which serve external needs.
Question 2
Question: What information do the notes to accounting statements provide?
A. When value has been delivered to customers
,B. Which of the following is NOT a situation when it would be important to analyze cash
flow information
C. Information on the accounting assumptions used in preparing the statements and
supplemental information not included in the statements themselves
D. States that financial results of an economic entity should be reported separately
Correct Answer: C. Information on the accounting assumptions used in preparing the
statements and supplemental information not included in the statements themselves
Rationale: Notes (footnotes) to financial statements explain accounting policies,
assumptions, and additional details not shown in the main numbers.
Question 3
Question: Organization that was formed to develop a common set of worldwide
accounting standards. Its standards are increasingly accepted worldwide, but FASB
rules are still the standard in the United States.
A. The International Financial Reporting Organization (IFRO)
B. The International Accounting Standards Board (IASB)
C. The World Accounting Federation (WAF)
D. The Global Financial Standards Board (GFSB)
Correct Answer: B. The International Accounting Standards Board (IASB)
Rationale: IASB issues IFRS (International Financial Reporting Standards). FASB is the
U.S. standard-setter.
Question 4
Question: How does FASB classify cash inflows from interest or dividends?
A. Although cash inflows from interest or dividends logically might be classified as
investing activities, the FASB decided to classify them as financing activities.
B. Although cash inflows from interest or dividends logically might be classified as
operating activities, the FASB decided to classify them as investing activities.
C. Although cash inflows from interest or dividends logically might be classified as
, investing or financing activities, the FASB decided to classify them as operating
activities.
D. Although cash inflows from interest or dividends logically might be classified as
financing activities, the FASB decided to classify them as investing activities.
Correct Answer: C. Although cash inflows from interest or dividends logically might be
classified as investing or financing activities, the FASB decided to classify them as
operating activities.
Rationale: Under U.S. GAAP, interest and dividends received are classified as operating
cash flows because they affect net income.
Question 5
Question: Percentage of funds needed to purchase assets that were obtained through
borrowing.
A. Return On Sales Ratio (Net Income / Sales)
B. Debt Ratio (Total Liabilities / Total Assets)
C. Current Ratio (Current Assets / Current Liabilities)
D. Asset Turnover (Sales / Total Assets)
Correct Answer: B. Debt Ratio (Total Liabilities / Total Assets)
Rationale: The debt ratio measures the proportion of a companyʼs assets financed by
debt (borrowing).
Question 6
Question: Income and cash flows from operations are seldom the same number.
A. True
B. False
Correct Answer: A. True
Rationale: Accrual accounting includes non-cash items (depreciation, changes in
working capital), so net income usually differs from operating cash flow.
WGU C213 Accounting For Decision Makers Final Exam
Update: Questions & Answers (Verified Answers), 100 %
Guaranteed Pass - PDF
Gradegurus
➢
➢
➢
➢
,Question 1
Question: The name given to accounting systems designed for internal users.
A. Tax Accounting
B. Managerial Accounting
C. Cost Accounting
D. Forensic Accounting
Correct Answer: B. Managerial Accounting
Rationale: Managerial accounting focuses on providing information for internal decision-
making (budgeting, performance evaluation, etc.), unlike tax or financial accounting
which serve external needs.
Question 2
Question: What information do the notes to accounting statements provide?
A. When value has been delivered to customers
,B. Which of the following is NOT a situation when it would be important to analyze cash
flow information
C. Information on the accounting assumptions used in preparing the statements and
supplemental information not included in the statements themselves
D. States that financial results of an economic entity should be reported separately
Correct Answer: C. Information on the accounting assumptions used in preparing the
statements and supplemental information not included in the statements themselves
Rationale: Notes (footnotes) to financial statements explain accounting policies,
assumptions, and additional details not shown in the main numbers.
Question 3
Question: Organization that was formed to develop a common set of worldwide
accounting standards. Its standards are increasingly accepted worldwide, but FASB
rules are still the standard in the United States.
A. The International Financial Reporting Organization (IFRO)
B. The International Accounting Standards Board (IASB)
C. The World Accounting Federation (WAF)
D. The Global Financial Standards Board (GFSB)
Correct Answer: B. The International Accounting Standards Board (IASB)
Rationale: IASB issues IFRS (International Financial Reporting Standards). FASB is the
U.S. standard-setter.
Question 4
Question: How does FASB classify cash inflows from interest or dividends?
A. Although cash inflows from interest or dividends logically might be classified as
investing activities, the FASB decided to classify them as financing activities.
B. Although cash inflows from interest or dividends logically might be classified as
operating activities, the FASB decided to classify them as investing activities.
C. Although cash inflows from interest or dividends logically might be classified as
, investing or financing activities, the FASB decided to classify them as operating
activities.
D. Although cash inflows from interest or dividends logically might be classified as
financing activities, the FASB decided to classify them as investing activities.
Correct Answer: C. Although cash inflows from interest or dividends logically might be
classified as investing or financing activities, the FASB decided to classify them as
operating activities.
Rationale: Under U.S. GAAP, interest and dividends received are classified as operating
cash flows because they affect net income.
Question 5
Question: Percentage of funds needed to purchase assets that were obtained through
borrowing.
A. Return On Sales Ratio (Net Income / Sales)
B. Debt Ratio (Total Liabilities / Total Assets)
C. Current Ratio (Current Assets / Current Liabilities)
D. Asset Turnover (Sales / Total Assets)
Correct Answer: B. Debt Ratio (Total Liabilities / Total Assets)
Rationale: The debt ratio measures the proportion of a companyʼs assets financed by
debt (borrowing).
Question 6
Question: Income and cash flows from operations are seldom the same number.
A. True
B. False
Correct Answer: A. True
Rationale: Accrual accounting includes non-cash items (depreciation, changes in
working capital), so net income usually differs from operating cash flow.
