WGU C213 Accounting for Decision Makers
Final Exam Practice Questions Plus Rationales
2026 Instant Pdf Download
COMPETENCY 3014.1.1: FINANCIAL ANALYSIS
(Questions 1–35)
The graduate analyzes financial statements to evaluate
company performance and makes recommendations.
1. Which of the following best describes the primary
purpose of financial accounting?
A) To maximize shareholder wealth
B) To provide information to external decision makers
about a company's financial performance and position
C) To calculate taxes owed to the government
D) To manage the company's day-to-day cash flow
,Answer: B — Financial accounting focuses on providing
financial information to external users such as investors,
creditors, and regulators to help them make informed
decisions.
2. 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
Answer: C — The balance sheet reports assets, liabilities,
and owners' equity at a specific point in time.
3. The income statement measures which of the
following?
,A) Financial position at a point in time
B) Financial performance over a period of time
C) Cash flows from operating activities
D) Changes in owners' equity
Answer: B — The income statement reports revenues,
expenses, and net income over a period of time.
4. Which of the following is NOT one of the three
primary financial statements?
A) Balance Sheet
B) Income Statement
C) Statement of Cash Flows
D) Statement of Management Responsibility
Answer: D — The three primary financial statements are
the balance sheet, income statement, and statement of
cash flows.
, 5. The statement of cash flows reports cash activities
in which three categories?
A) Operating, Investing, and Financing
B) Operating, Investing, and Marketing
C) Financing, Investing, and Budgeting
D) Operating, Financing, and Administrative
Answer: A — The statement of cash flows reports cash
collected and paid out in operating, investing, and
financing activities.
6. Which of the following is an asset?
A) Accounts Payable
B) Notes Payable
C) Equipment
D) Common Stock
Final Exam Practice Questions Plus Rationales
2026 Instant Pdf Download
COMPETENCY 3014.1.1: FINANCIAL ANALYSIS
(Questions 1–35)
The graduate analyzes financial statements to evaluate
company performance and makes recommendations.
1. Which of the following best describes the primary
purpose of financial accounting?
A) To maximize shareholder wealth
B) To provide information to external decision makers
about a company's financial performance and position
C) To calculate taxes owed to the government
D) To manage the company's day-to-day cash flow
,Answer: B — Financial accounting focuses on providing
financial information to external users such as investors,
creditors, and regulators to help them make informed
decisions.
2. 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
Answer: C — The balance sheet reports assets, liabilities,
and owners' equity at a specific point in time.
3. The income statement measures which of the
following?
,A) Financial position at a point in time
B) Financial performance over a period of time
C) Cash flows from operating activities
D) Changes in owners' equity
Answer: B — The income statement reports revenues,
expenses, and net income over a period of time.
4. Which of the following is NOT one of the three
primary financial statements?
A) Balance Sheet
B) Income Statement
C) Statement of Cash Flows
D) Statement of Management Responsibility
Answer: D — The three primary financial statements are
the balance sheet, income statement, and statement of
cash flows.
, 5. The statement of cash flows reports cash activities
in which three categories?
A) Operating, Investing, and Financing
B) Operating, Investing, and Marketing
C) Financing, Investing, and Budgeting
D) Operating, Financing, and Administrative
Answer: A — The statement of cash flows reports cash
collected and paid out in operating, investing, and
financing activities.
6. Which of the following is an asset?
A) Accounts Payable
B) Notes Payable
C) Equipment
D) Common Stock
