WGU Accounting-for-Decision-Makers : WGU Accounting for Decision Makers C213 VAC2

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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. The following list provides partial financial information for a company.
Financial Category | 20X3 | 20X2
Net income | $3,540 | ?
Cash from operations | $4,417 | ?
Cash paid for capital expenditures | $5,613 | ?
Cash paid for acquisitions | $5,964 | ?
Cash paid for interest | $2,782 | ?
Cash paid for income taxes | $2,860 | ?
What is the cash flow to net income ratio for this company in 20X2?

A) 1.35
B) -0.01
C) 1.80
D) 2.45

2. What are two examples of product costs?
Choose 2 answers.

A) Direct labor
B) Raw materials
C) Selling and administrative expenses
D) Period expenses

3. A company plans to purchase inventory for the second half of a year as follows:
July = $100,000
August = $75,000
September = $225,000
October = $125,000
November = $250,000
December = $30,000
The company usually pays 50% of inventory purchases in the month of purchase, 35% in the following month, and 15% in the second month.
What are the forecasted October cash payments based on this information?

A) $62,500
B) $78,750
C) $18,750
D) $152,500

4. What is a significant role of the U.S. Securities and Exchange Commission (SEC) in financial reporting?

A) The SEC ensures that financial statement users are provided with reliable information to use in decision- making
B) The SEC supports company management and boards of directors in the effective discharge of their responsibilities
C) The SEC provides representation and training to controllers of public companies
D) The SEC ensures that auditors have the resources and information necessary to provide valuable professional services

5. In September, an airline using accrual accounting received cash from a round-trip ticket sold to a customer for
$1,500. The ticket allowed the customer to fly from Denver to Hawaii in October and from Hawaii back to Denver in November.
When should the airline recognize revenue?

A) Only in September
B) In September, October, and November
C) In October and November
D) Only in November

Solutions: