WGU C213 PRE-ASSESSMENT 2025 UPDATE – QUESTIONS AND ANSWERS (GRADED A+) || 100% GUARANTEED PASS RECENT VERSION

WGU C213 PRE-ASSESSMENT 2025
UPDATE – QUESTIONS AND ANSWERS
(GRADED A+) || 100% GUARANTEED
PASS <RECENT VERSION>
WGU C213 Pre-Assessment: Accounting for Decision Makers
1. What is the primary purpose of financial accounting?
A) To provide information to internal managers for decision-making.
B) To generate reports for tax authorities only.
C) To provide financial information to external users for decision-making.
D) To track daily operational efficiency.
2. Which of the following is a limitation of the Balance Sheet?
A) It shows the profitability of a company.
B) Many assets are recorded at their historical cost, not current market value.
C) It is prepared using the accrual basis of accounting.
D) It lists all of a company's resources and obligations.
3. The Statement of Cash Flows is divided into which three main sections?
A) Operating, Investing, and Financing
B) Operating, Investing, and Financing
C) Assets, Liabilities, and Equity
D) Revenue, Expenses, and Net Income
4. What does the Matching Principle state?
A) Revenues should be recorded when cash is received.
B) Expenses should be recorded in the same period as the revenues they helped
generate.
C) Assets must always equal liabilities plus equity.
D) The cost of an asset should be matched to its salvage value.
5. Which financial statement shows a company's financial position at a specific
point in time?

,A) Income Statement
B) Statement of Cash Flows
C) Statement of Retained Earnings
D) Balance Sheet
6. Net Income appears on which two financial statements?
A) Balance Sheet and Statement of Cash Flows
B) Income Statement and Statement of Retained Earnings
C) Balance Sheet and Income Statement
D) Statement of Cash Flows and Statement of Retained Earnings
7. The historical cost principle dictates that assets should be recorded...
A) at their estimated market value.
B) at their replacement cost.
C) at the amount paid to acquire them.
D) at their net realizable value.
8. What is the fundamental accounting equation?
A) Assets = Liabilities - Equity
B) Net Income = Revenue - Expenses
C) Assets = Liabilities + Equity
D) Equity = Assets + Liabilities
9. An increase in an expense account will ultimately...
A) increase assets.
B) decrease equity.
C) increase liabilities.
D) decrease revenue.
10. Which of the following is an operating activity on the Statement of Cash
Flows?
A) Issuing stock
B) Purchasing equipment
C) Paying dividends
D) Collecting cash from customers

, 11. The primary objective of an external audit is to...
A) detect all fraud within the company.
B) express an opinion on whether the financial statements are fairly presented.
C) prepare the company's financial statements.
D) guarantee the company's future profitability.
12. What is the role of the SEC (Securities and Exchange Commission)?
A) To create International Financial Reporting Standards (IFRS).
B) To manage the nation's monetary policy.
C) To regulate the securities markets and protect investors in the U.S.
D) To set auditing standards for private companies.
13. Which organization is responsible for setting U.S. Generally Accepted
Accounting Principles (GAAP)?
A) SEC
B) IRS
C) FASB (Financial Accounting Standards Board)
D) PCAOB
14. What is the primary focus of managerial accounting?
A) Providing reports to shareholders.
B) Providing information for internal planning and control.
C) Complying with SEC regulations.
D) Preparing tax returns.
15. The Sarbanes-Oxley Act (SOX) was enacted primarily to...
A) reduce corporate tax rates.
B) improve the accuracy and reliability of corporate disclosures.
C) establish international accounting standards.
D) promote free trade.
16. Which of the following is a current asset?
A) Land
B) Patent
C) Accounts Receivable
D) Building