WGU C213 Accounting For Decision Makers
Final Actual Exam Questions with Correct
Answers & Explanations | Graded A+ Study
Guide.
Question 1
Which financial statement reports a company’s financial position at a specific point in
time?
A) Income Statement
B) Statement of Cash Flows
C) Balance Sheet
D) Statement of Retained Earnings
Correct Answer: C
The balance sheet shows assets, liabilities, and equity on a specific date (e.g., December
31). The income statement covers a period of time.
Question 2
A company has current assets
of 200,000andcurrentliabilitiesof200,000andcurrentliabilitiesof150,000. What is
the current ratio?
A) 0.75
B) 1.33
, C) 1.00
D) 1.50
Correct Answer: B
*Current ratio = Current assets / Current liabilities = 200,000/200,000/150,000 = 1.33.
This measures short-term liquidity.*
Question 3
Which of the following is an example of a fixed cost?
A) Direct materials
B) Sales commissions
C) Factory rent
D) Shipping costs
Correct Answer: C
Fixed costs remain constant in total within a relevant range, regardless of production
volume. Factory rent does not change with units produced.
Question 4
If a company has net sales
of 500,000andcostofgoodssoldof500,000andcostofgoodssoldof300,000, what is the
gross profit percentage?
A) 40%
B) 60%
C) 50%
D) 33%
Correct Answer: A
*Gross profit = Sales – COGS
, = 200,000.Grossprofitpercentage=Grossprofit/Sales=200,000.Grossprofitpercen
tage=Grossprofit/Sales=200,000 / $500,000 = 40%.*
Question 5
Which concept requires that expenses be recorded in the same period as the revenues
they helped generate?
A) Matching principle
B) Revenue recognition principle
C) Historical cost principle
D) Full disclosure principle
Correct Answer: A
The matching principle drives accrual accounting by linking expenses to the revenues they
produce, regardless of cash flow timing.
Question 6
Which of the following is NOT a cash flow from operating activities?
A) Cash received from customers
B) Purchase of equipment
C) Payment to suppliers
D) Payment of wages
Correct Answer: B
Purchase of equipment is an investing activity. Operating activities relate to core business
transactions affecting net income.
Question 7
Final Actual Exam Questions with Correct
Answers & Explanations | Graded A+ Study
Guide.
Question 1
Which financial statement reports a company’s financial position at a specific point in
time?
A) Income Statement
B) Statement of Cash Flows
C) Balance Sheet
D) Statement of Retained Earnings
Correct Answer: C
The balance sheet shows assets, liabilities, and equity on a specific date (e.g., December
31). The income statement covers a period of time.
Question 2
A company has current assets
of 200,000andcurrentliabilitiesof200,000andcurrentliabilitiesof150,000. What is
the current ratio?
A) 0.75
B) 1.33
, C) 1.00
D) 1.50
Correct Answer: B
*Current ratio = Current assets / Current liabilities = 200,000/200,000/150,000 = 1.33.
This measures short-term liquidity.*
Question 3
Which of the following is an example of a fixed cost?
A) Direct materials
B) Sales commissions
C) Factory rent
D) Shipping costs
Correct Answer: C
Fixed costs remain constant in total within a relevant range, regardless of production
volume. Factory rent does not change with units produced.
Question 4
If a company has net sales
of 500,000andcostofgoodssoldof500,000andcostofgoodssoldof300,000, what is the
gross profit percentage?
A) 40%
B) 60%
C) 50%
D) 33%
Correct Answer: A
*Gross profit = Sales – COGS
, = 200,000.Grossprofitpercentage=Grossprofit/Sales=200,000.Grossprofitpercen
tage=Grossprofit/Sales=200,000 / $500,000 = 40%.*
Question 5
Which concept requires that expenses be recorded in the same period as the revenues
they helped generate?
A) Matching principle
B) Revenue recognition principle
C) Historical cost principle
D) Full disclosure principle
Correct Answer: A
The matching principle drives accrual accounting by linking expenses to the revenues they
produce, regardless of cash flow timing.
Question 6
Which of the following is NOT a cash flow from operating activities?
A) Cash received from customers
B) Purchase of equipment
C) Payment to suppliers
D) Payment of wages
Correct Answer: B
Purchase of equipment is an investing activity. Operating activities relate to core business
transactions affecting net income.
Question 7
