WGU C213 Accounting For
Decision Makers Final
Exam Update: Questions
& Answers (Verified
Answers), 100 %
Guaranteed Pass - PDF
🔹 SECTION 1: Core Concepts
1. What is the primary purpose of financial accounting?
A. Internal decision-making
B. External reporting
C. Budgeting
D. Cost allocation
✅ Answer: B. External reporting
Rationale: Financial accounting is designed mainly for external users like investors
and creditors.
2. Which statement reports financial position at a point in time?
A. Income Statement
B. Cash Flow Statement
C. Balance Sheet
D. Retained Earnings Statement
,✅ Answer: C. Balance Sheet
3. Which users are considered internal users?
A. Creditors
B. Investors
C. Management
D. IRS
✅ Answer: C. Management
🔹 SECTION 2: Financial Statements & Cash Flow
4. Which activity is classified as an investing activity?
A. Paying salaries
B. Purchasing equipment
C. Paying dividends
D. Issuing stock
✅ Answer: B. Purchasing equipment
5. Which activity is a financing activity?
A. Selling inventory
B. Paying rent
C. Issuing stock
D. Paying suppliers
✅ Answer: C. Issuing stock
6. Net income differs from cash flow because:
A. Accrual accounting is used
B. Cash accounting is used
,C. Taxes are excluded
D. Assets are ignored
✅ Answer: A. Accrual accounting is used
🔹 SECTION 3: Cost Behavior & Classification
7. Which cost remains constant in total regardless of activity level?
A. Variable cost
B. Fixed cost
C. Mixed cost
D. Direct cost
✅ Answer: B. Fixed cost
8. Direct materials are classified as:
A. Period cost
B. Product cost
C. Indirect cost
D. Administrative cost
✅ Answer: B. Product cost
9. Which cost changes per unit but not in total?
A. Fixed cost
B. Variable cost
C. Sunk cost
D. Opportunity cost
✅ Answer: B. Variable cost
🔹 SECTION 4: CVP & Break-Even
, 10. Contribution Margin =
A. Sales – Fixed Costs
B. Sales – Variable Costs
C. Net Income + Expenses
D. Revenue – Taxes
✅ Answer: B. Sales – Variable Costs
11. Break-even point occurs when:
A. Profit is maximized
B. Revenue = Variable cost
C. Total revenue = Total costs
D. Fixed cost is zero
✅ Answer: C. Total revenue = Total costs
12. If fixed costs increase, break-even point will:
A. Decrease
B. Stay the same
C. Increase
D. Become zero
✅ Answer: C. Increase
🔹 SECTION 5: Ratio Analysis
13. Current Ratio measures:
A. Profitability
B. Liquidity
C. Efficiency
D. Leverage
Decision Makers Final
Exam Update: Questions
& Answers (Verified
Answers), 100 %
Guaranteed Pass - PDF
🔹 SECTION 1: Core Concepts
1. What is the primary purpose of financial accounting?
A. Internal decision-making
B. External reporting
C. Budgeting
D. Cost allocation
✅ Answer: B. External reporting
Rationale: Financial accounting is designed mainly for external users like investors
and creditors.
2. Which statement reports financial position at a point in time?
A. Income Statement
B. Cash Flow Statement
C. Balance Sheet
D. Retained Earnings Statement
,✅ Answer: C. Balance Sheet
3. Which users are considered internal users?
A. Creditors
B. Investors
C. Management
D. IRS
✅ Answer: C. Management
🔹 SECTION 2: Financial Statements & Cash Flow
4. Which activity is classified as an investing activity?
A. Paying salaries
B. Purchasing equipment
C. Paying dividends
D. Issuing stock
✅ Answer: B. Purchasing equipment
5. Which activity is a financing activity?
A. Selling inventory
B. Paying rent
C. Issuing stock
D. Paying suppliers
✅ Answer: C. Issuing stock
6. Net income differs from cash flow because:
A. Accrual accounting is used
B. Cash accounting is used
,C. Taxes are excluded
D. Assets are ignored
✅ Answer: A. Accrual accounting is used
🔹 SECTION 3: Cost Behavior & Classification
7. Which cost remains constant in total regardless of activity level?
A. Variable cost
B. Fixed cost
C. Mixed cost
D. Direct cost
✅ Answer: B. Fixed cost
8. Direct materials are classified as:
A. Period cost
B. Product cost
C. Indirect cost
D. Administrative cost
✅ Answer: B. Product cost
9. Which cost changes per unit but not in total?
A. Fixed cost
B. Variable cost
C. Sunk cost
D. Opportunity cost
✅ Answer: B. Variable cost
🔹 SECTION 4: CVP & Break-Even
, 10. Contribution Margin =
A. Sales – Fixed Costs
B. Sales – Variable Costs
C. Net Income + Expenses
D. Revenue – Taxes
✅ Answer: B. Sales – Variable Costs
11. Break-even point occurs when:
A. Profit is maximized
B. Revenue = Variable cost
C. Total revenue = Total costs
D. Fixed cost is zero
✅ Answer: C. Total revenue = Total costs
12. If fixed costs increase, break-even point will:
A. Decrease
B. Stay the same
C. Increase
D. Become zero
✅ Answer: C. Increase
🔹 SECTION 5: Ratio Analysis
13. Current Ratio measures:
A. Profitability
B. Liquidity
C. Efficiency
D. Leverage
