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WGU Accounting-for-Decision-Makers Exam Syllabus Topics:

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. What does the overall economic performance of a company for a given time period represent?

A) The overall market value of the company
B) The net income of the company
C) Whether or not cash received from sales exceeds cash paid for business expenses for a given time period
D) Whether or not a company's sales exceed the costs of the products sold for a given time period

2. What does it mean if a company has a debt ratio of 101.5%?

A) The company has 1.5% more total liabilities than gross sales
B) The company has 1.5% more current liabilities than current assets
C) The company has 1.5% more total liabilities than total assets
D) The company has 1.5% more total liabilities than net income

3. A company's statement of cash flows includes the following cash transactions.
Sales = $1,250,000
Inventory purchase = -$750,000
Property and equipment purchase = -$280,000
Interest payment on long-term debt = -$25,000
Payment of wages = -$315,000
Payment of rent = -$40,000
Borrowing long-term debt = $200,000
Payment of cash dividends = -$15,000
Repurchase of treasury stock = -$40,000
Total cash flows = -$5,000
What is the total cash flow from investing activities?

A) -$55,000
B) -$310,000
C) -$280,000
D) -$325,000

4. What does management accounting present?

A) Data to predict inconsistencies in finances to help users within a company make decisions
B) Detailed data regarding a business's overall economic performance to help outside stakeholders make decisions
C) Information regarding a business's overall economic performance to help shareholders make decisions
D) Information regarding the qualifications of managers to help shareholders make decisions

5. A company presently uses traditional volume-based costing to allocate overhead to its products.
The following table provides information on two of the company's products:
Product A
Product B
Selling price
$8
$12
Direct material
$2
$3
Direct labor
$1
$2
Applied overhead
$3
$4
Gross margin
$2
$3
Overhead that would be applied to Product A would increase to $8 per unit after identifying cost pools and cost drivers, and the overhead applied to Product B would drop to $2 per unit .
How would this change in the way overhead is allocated affect the selling price of both products?

A) The price of Product A would decrease, and the price of Product B would increase
B) The price of neither product would change
C) The price of Product A would increase, and the price of Product B would increase
D) The price of Product A would increase, and the price of Product B would decrease

Solutions: