WGU C213 Accounting For Decision Makers Final Exam
Prep Document | 2026/2027 Edition | 150 Verified Questions
WGU C213 Accounting For Decision Makers Final Exam 2026-2027 QUESTIONS AND
ANSWERS ALREADY GRADED A+. 100% Verified Solutions | Updated Per Latest Guidelines |
Graded A+
This comprehensive exam preparation document contains 150 verified questions and answers for the
WGU C213 Accounting For Decision Makers final exam. Designed to align with the 2026/2027
academic year, it covers all key topics including financial accounting, managerial accounting, and
decision-making frameworks. Each question is accompanied by a detailed rationale to reinforce
understanding and ensure exam readiness. With a 100% guarantee of passing, this resource is essential
for students seeking a high score.
Key Features:
Financial accounting principles and statement analysis
Managerial accounting concepts: cost behavior, CVP analysis, budgeting
Decision-making tools: relevant costs, capital budgeting, performance evaluation
Ethical considerations and internal controls
Comprehensive coverage of all WGU C213 competencies
150 questions with verified answers and rationales
Updates for 2026:
- Updated to reflect the latest 2026/2027 WGU C213 curriculum changes
- Incorporated new questions on data analytics in accounting
- Revised rationales to align with current accounting standards (e.g., ASC 606)
- Added emphasis on sustainability reporting and ESG factors
- Enhanced distractor explanations to clarify common misconceptions
Abstract:
This document provides a rigorous preparation tool for the WGU C213 Accounting For Decision Makers final
exam, featuring 150 verified questions and answers. The content is structured to mirror the exam's focus on
applying accounting information to business decisions. Topics span financial statement analysis, cost management,
budgeting, and capital investment decisions, with each question designed to test both conceptual understanding
and practical application. Rationales explain correct answers and common errors, reinforcing learning. Updated
for the 2026/2027 academic year, this resource incorporates recent developments in accounting standards and
decision-making frameworks. It is an indispensable aid for students aiming to achieve a top grade and demonstrate
mastery of accounting for decision makers.
Keywords:
WGU C213, Accounting For Decision Makers, Final Exam, Verified Questions, 2026/2027, Cost-Volume-Profit
Analysis, Financial Statement Analysis, Capital Budgeting
Answer Format:
Each question includes the correct answer letter (A, B, C, or D) followed by a detailed rationale explaining why it
is correct. Distractor options are analyzed to clarify common pitfalls. Rationales are concise yet comprehensive,
linking back to key accounting concepts.
Compliance Checklist:
All questions align with WGU C213 course competencies
Answers verified by subject matter experts
Page 1
, Updated for 2026/2027 academic year guidelines
Rationales provide step-by-step explanations
Covers all major exam topics with appropriate weight distribution
Guaranteed to help achieve a passing grade
Content Area Overview:
Content Area Questions Key Topics Weight
Financial Accounting and 1-35 Financial statements, accrual accounting, 23%
Reporting revenue recognition, internal controls
Managerial Accounting 36-70 Cost behavior, CVP analysis, job costing, 23%
Fundamentals activity-based costing
Budgeting and Performance 71-100 Master budgets, flexible budgets, variance 20%
Evaluation analysis, responsibility accounting
Decision Making and Capital 101-130 Relevant costs, make-or-buy decisions, 20%
Budgeting NPV, IRR, payback period
Ethics, Sustainability, and 131-150 Ethical frameworks, sustainability reporting, 14%
Emerging Issues data analytics in accounting
Page 2
,Q1. A company's total assets are $500,000, total liabilities are $200,000, and common stock is $100,000. If
retained earnings are $150,000 and the company issues additional common stock for $50,000 cash, what is the
effect on the accounting equation?
A. Assets increase by $50,000; liabilities increase by $50,000; equity unchanged.
B. Assets increase by $50,000; equity increases by $50,000; liabilities unchanged.
C. Assets increase by $50,000; liabilities decrease by $50,000; equity unchanged.
D. Assets unchanged; equity increases by $50,000; liabilities decrease by $50,000.
Correct Answer: B. Assets increase by $50,000; equity increases by $50,000; liabilities unchanged.
Rationale: Issuing common stock increases both assets (cash) and equity (common stock) by $50,000. Liabilities
are not affected. The accounting equation (Assets = Liabilities + Equity) remains balanced with an increase on
both sides.
Why Wrong:
A - Liabilities are not involved in the issuance of common stock.
C - Liabilities do not decrease when issuing common stock.
D - Assets increase by $50,000, not unchanged.
Reference: Kimmel, P.D., Weygandt, J.J., & Kieso, D.E. (2022). Financial Accounting: Tools for Business Decision
Making, 10th Ed., Ch. 1.
Q2. A manufacturing company has variable costs of $40 per unit and fixed costs of $200,000 per year. The
selling price is $100 per unit. What is the margin of safety in units if the company expects to sell 5,000 units?
A. 1,667 units
B. 2,000 units
C. 3,333 units
D. 5,000 units
Correct Answer: A. 1,667 units
Rationale: Break-even point in units = Fixed costs / Contribution margin per unit = $200,000 / ($100 - $40) =
3,333.33 units. Margin of safety = Expected sales - Break-even sales = 5,000 - 3,333.33 = 1,666.67 units 1,667
units.
Why Wrong:
B - 2,000 units would result from using a contribution margin ratio incorrectly.
C - 3,333 units is the break-even point, not the margin of safety.
D - 5,000 units is the expected sales, not the margin of safety.
Reference: Garrison, R.H., Noreen, E.W., & Brewer, P.C. (2021). Managerial Accounting, 17th Ed., Ch. 6.
Q3. Which of the following is most likely to cause an unfavorable direct labor efficiency variance?
A. Paying higher wages than budgeted
B. Using lower-quality materials that require more labor time
C. Assigning less experienced workers than planned
D. Both B and C
Correct Answer: D. Both B and C
Rationale: Direct labor efficiency variance is affected by the amount of labor time used. Lower-quality materials
(B) can increase processing time, and less experienced workers (C) typically work slower, both leading to
unfavorable efficiency variances. Higher wages (A) affect the rate variance, not efficiency.
Why Wrong:
A - Higher wages affect the labor rate variance, not efficiency.
B - While true, this option alone is incomplete; both B and C contribute.
C - While true, this option alone is incomplete; both B and C contribute.
Reference: Horngren, C.T., Datar, S.M., & Rajan, M.V. (2020). Cost Accounting: A Managerial Emphasis, 16th
Page 3
, Ed., Ch. 7.
Q4. A company's cash flow statement shows net cash provided by operating activities of $150,000, net cash
used in investing activities of $80,000, and net cash provided by financing activities of $20,000. If the
beginning cash balance was $50,000, what is the ending cash balance?
A. $100,000
B. $140,000
C. $200,000
D. $250,000
Correct Answer: B. $140,000
Rationale: Ending cash balance = Beginning cash + Net change in cash. Net change = Operating ($150,000) +
Investing (-$80,000) + Financing ($20,000) = $90,000. Ending balance = $50,000 + $90,000 = $140,000.
Why Wrong:
A - $100,000 results from incorrectly subtracting financing activities.
C - $200,000 results from adding all activities without considering signs.
D - $250,000 results from adding beginning balance to operating cash flow only.
Reference: Kimmel, P.D., Weygandt, J.J., & Kieso, D.E. (2022). Financial Accounting: Tools for Business Decision
Making, 10th Ed., Ch. 12.
Q5. In a make-or-buy decision, which of the following costs is relevant?
A. Fixed manufacturing overhead that will continue regardless of the decision
B. The purchase price of the component
C. Depreciation on existing equipment used to produce the component
D. Allocated corporate administrative costs
Correct Answer: B. The purchase price of the component
Rationale: Relevant costs are those that differ between alternatives. The purchase price is incremental if buying.
Fixed overhead and depreciation are sunk or unavoidable, and allocated corporate costs are typically not
incremental.
Why Wrong:
A - Fixed overhead that continues is not differential.
C - Depreciation is a non-cash expense and often sunk.
D - Allocated corporate costs are usually not affected by the decision.
Reference: Garrison, R.H., Noreen, E.W., & Brewer, P.C. (2021). Managerial Accounting, 17th Ed., Ch. 11.
Q6. A company has a current ratio of 2.5 and an acid-test ratio of 1.2. Which of the following transactions
would increase the acid-test ratio?
A. Purchase of inventory on credit
B. Collection of accounts receivable
C. Payment of accounts payable
D. Sale of equipment for cash
Correct Answer: C. Payment of accounts payable
Rationale: The acid-test ratio = (Cash + AR + Marketable securities) / Current liabilities. Paying AP reduces both
numerator (cash) and denominator (AP), but the denominator decreases proportionally more, increasing the ratio.
Purchase of inventory on credit increases inventory (not in numerator) and AP, decreasing the ratio. Collection of
AR swaps one asset for another, no effect. Sale of equipment increases cash and gain, but equipment is long-term,
so ratio increases slightly but not as clearly as AP payment.
Why Wrong:
A - Inventory is excluded from the numerator, and AP increases denominator.
B - No net effect on quick assets or liabilities.
Page 4
Prep Document | 2026/2027 Edition | 150 Verified Questions
WGU C213 Accounting For Decision Makers Final Exam 2026-2027 QUESTIONS AND
ANSWERS ALREADY GRADED A+. 100% Verified Solutions | Updated Per Latest Guidelines |
Graded A+
This comprehensive exam preparation document contains 150 verified questions and answers for the
WGU C213 Accounting For Decision Makers final exam. Designed to align with the 2026/2027
academic year, it covers all key topics including financial accounting, managerial accounting, and
decision-making frameworks. Each question is accompanied by a detailed rationale to reinforce
understanding and ensure exam readiness. With a 100% guarantee of passing, this resource is essential
for students seeking a high score.
Key Features:
Financial accounting principles and statement analysis
Managerial accounting concepts: cost behavior, CVP analysis, budgeting
Decision-making tools: relevant costs, capital budgeting, performance evaluation
Ethical considerations and internal controls
Comprehensive coverage of all WGU C213 competencies
150 questions with verified answers and rationales
Updates for 2026:
- Updated to reflect the latest 2026/2027 WGU C213 curriculum changes
- Incorporated new questions on data analytics in accounting
- Revised rationales to align with current accounting standards (e.g., ASC 606)
- Added emphasis on sustainability reporting and ESG factors
- Enhanced distractor explanations to clarify common misconceptions
Abstract:
This document provides a rigorous preparation tool for the WGU C213 Accounting For Decision Makers final
exam, featuring 150 verified questions and answers. The content is structured to mirror the exam's focus on
applying accounting information to business decisions. Topics span financial statement analysis, cost management,
budgeting, and capital investment decisions, with each question designed to test both conceptual understanding
and practical application. Rationales explain correct answers and common errors, reinforcing learning. Updated
for the 2026/2027 academic year, this resource incorporates recent developments in accounting standards and
decision-making frameworks. It is an indispensable aid for students aiming to achieve a top grade and demonstrate
mastery of accounting for decision makers.
Keywords:
WGU C213, Accounting For Decision Makers, Final Exam, Verified Questions, 2026/2027, Cost-Volume-Profit
Analysis, Financial Statement Analysis, Capital Budgeting
Answer Format:
Each question includes the correct answer letter (A, B, C, or D) followed by a detailed rationale explaining why it
is correct. Distractor options are analyzed to clarify common pitfalls. Rationales are concise yet comprehensive,
linking back to key accounting concepts.
Compliance Checklist:
All questions align with WGU C213 course competencies
Answers verified by subject matter experts
Page 1
, Updated for 2026/2027 academic year guidelines
Rationales provide step-by-step explanations
Covers all major exam topics with appropriate weight distribution
Guaranteed to help achieve a passing grade
Content Area Overview:
Content Area Questions Key Topics Weight
Financial Accounting and 1-35 Financial statements, accrual accounting, 23%
Reporting revenue recognition, internal controls
Managerial Accounting 36-70 Cost behavior, CVP analysis, job costing, 23%
Fundamentals activity-based costing
Budgeting and Performance 71-100 Master budgets, flexible budgets, variance 20%
Evaluation analysis, responsibility accounting
Decision Making and Capital 101-130 Relevant costs, make-or-buy decisions, 20%
Budgeting NPV, IRR, payback period
Ethics, Sustainability, and 131-150 Ethical frameworks, sustainability reporting, 14%
Emerging Issues data analytics in accounting
Page 2
,Q1. A company's total assets are $500,000, total liabilities are $200,000, and common stock is $100,000. If
retained earnings are $150,000 and the company issues additional common stock for $50,000 cash, what is the
effect on the accounting equation?
A. Assets increase by $50,000; liabilities increase by $50,000; equity unchanged.
B. Assets increase by $50,000; equity increases by $50,000; liabilities unchanged.
C. Assets increase by $50,000; liabilities decrease by $50,000; equity unchanged.
D. Assets unchanged; equity increases by $50,000; liabilities decrease by $50,000.
Correct Answer: B. Assets increase by $50,000; equity increases by $50,000; liabilities unchanged.
Rationale: Issuing common stock increases both assets (cash) and equity (common stock) by $50,000. Liabilities
are not affected. The accounting equation (Assets = Liabilities + Equity) remains balanced with an increase on
both sides.
Why Wrong:
A - Liabilities are not involved in the issuance of common stock.
C - Liabilities do not decrease when issuing common stock.
D - Assets increase by $50,000, not unchanged.
Reference: Kimmel, P.D., Weygandt, J.J., & Kieso, D.E. (2022). Financial Accounting: Tools for Business Decision
Making, 10th Ed., Ch. 1.
Q2. A manufacturing company has variable costs of $40 per unit and fixed costs of $200,000 per year. The
selling price is $100 per unit. What is the margin of safety in units if the company expects to sell 5,000 units?
A. 1,667 units
B. 2,000 units
C. 3,333 units
D. 5,000 units
Correct Answer: A. 1,667 units
Rationale: Break-even point in units = Fixed costs / Contribution margin per unit = $200,000 / ($100 - $40) =
3,333.33 units. Margin of safety = Expected sales - Break-even sales = 5,000 - 3,333.33 = 1,666.67 units 1,667
units.
Why Wrong:
B - 2,000 units would result from using a contribution margin ratio incorrectly.
C - 3,333 units is the break-even point, not the margin of safety.
D - 5,000 units is the expected sales, not the margin of safety.
Reference: Garrison, R.H., Noreen, E.W., & Brewer, P.C. (2021). Managerial Accounting, 17th Ed., Ch. 6.
Q3. Which of the following is most likely to cause an unfavorable direct labor efficiency variance?
A. Paying higher wages than budgeted
B. Using lower-quality materials that require more labor time
C. Assigning less experienced workers than planned
D. Both B and C
Correct Answer: D. Both B and C
Rationale: Direct labor efficiency variance is affected by the amount of labor time used. Lower-quality materials
(B) can increase processing time, and less experienced workers (C) typically work slower, both leading to
unfavorable efficiency variances. Higher wages (A) affect the rate variance, not efficiency.
Why Wrong:
A - Higher wages affect the labor rate variance, not efficiency.
B - While true, this option alone is incomplete; both B and C contribute.
C - While true, this option alone is incomplete; both B and C contribute.
Reference: Horngren, C.T., Datar, S.M., & Rajan, M.V. (2020). Cost Accounting: A Managerial Emphasis, 16th
Page 3
, Ed., Ch. 7.
Q4. A company's cash flow statement shows net cash provided by operating activities of $150,000, net cash
used in investing activities of $80,000, and net cash provided by financing activities of $20,000. If the
beginning cash balance was $50,000, what is the ending cash balance?
A. $100,000
B. $140,000
C. $200,000
D. $250,000
Correct Answer: B. $140,000
Rationale: Ending cash balance = Beginning cash + Net change in cash. Net change = Operating ($150,000) +
Investing (-$80,000) + Financing ($20,000) = $90,000. Ending balance = $50,000 + $90,000 = $140,000.
Why Wrong:
A - $100,000 results from incorrectly subtracting financing activities.
C - $200,000 results from adding all activities without considering signs.
D - $250,000 results from adding beginning balance to operating cash flow only.
Reference: Kimmel, P.D., Weygandt, J.J., & Kieso, D.E. (2022). Financial Accounting: Tools for Business Decision
Making, 10th Ed., Ch. 12.
Q5. In a make-or-buy decision, which of the following costs is relevant?
A. Fixed manufacturing overhead that will continue regardless of the decision
B. The purchase price of the component
C. Depreciation on existing equipment used to produce the component
D. Allocated corporate administrative costs
Correct Answer: B. The purchase price of the component
Rationale: Relevant costs are those that differ between alternatives. The purchase price is incremental if buying.
Fixed overhead and depreciation are sunk or unavoidable, and allocated corporate costs are typically not
incremental.
Why Wrong:
A - Fixed overhead that continues is not differential.
C - Depreciation is a non-cash expense and often sunk.
D - Allocated corporate costs are usually not affected by the decision.
Reference: Garrison, R.H., Noreen, E.W., & Brewer, P.C. (2021). Managerial Accounting, 17th Ed., Ch. 11.
Q6. A company has a current ratio of 2.5 and an acid-test ratio of 1.2. Which of the following transactions
would increase the acid-test ratio?
A. Purchase of inventory on credit
B. Collection of accounts receivable
C. Payment of accounts payable
D. Sale of equipment for cash
Correct Answer: C. Payment of accounts payable
Rationale: The acid-test ratio = (Cash + AR + Marketable securities) / Current liabilities. Paying AP reduces both
numerator (cash) and denominator (AP), but the denominator decreases proportionally more, increasing the ratio.
Purchase of inventory on credit increases inventory (not in numerator) and AP, decreasing the ratio. Collection of
AR swaps one asset for another, no effect. Sale of equipment increases cash and gain, but equipment is long-term,
so ratio increases slightly but not as clearly as AP payment.
Why Wrong:
A - Inventory is excluded from the numerator, and AP increases denominator.
B - No net effect on quick assets or liabilities.
Page 4
