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WGU Accounting-for-Decision-Makers Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Cost Systems | 20–25% | - Costing methods
|
| Topic 2: Financial Analysis | 45–50% | - Financial statement analysis techniques
|
| Topic 3: Budgeting and Decision Making | 10–15% | - Relevant information for decision making
|
| Topic 4: Profit Planning | 10–15% | - Cost-volume-profit (CVP) analysis
|
| Topic 5: Controls and Regulations | 10–15% | - Internal control systems and principles
|
WGU Accounting for Decision Makers C213 VAC2 Sample Questions:
Which balance sheet category reflects what a company owns that can be turned into cash or used to generate cash?
- A. Revenues
- B. Assets
- C. Liabilities
- D. Owners' equity
Correct Answer: B 🗳️
Explanation: Only visible for TestInsides members. You can sign-up / login (it's free).
Match each accounting term with its definition.
Answer options may be used more than once or not at all.
Select your answer from the pull-down list.
Correct Answer:
Explanation:
Conservatism - Information related to recognizing losses as they occur
Reliable - Information that can be verified
Material - Information that is important enough to make a difference
Relevant - Information having to do with the matter at hand
These accounting terms describe important qualitative ideas used in financial reporting. Conservatism means accountants should use caution when uncertainty exists, especially by recognizing potential losses sooner rather than delaying them. Reliable information is information that can be supported, confirmed, or verified, which makes it trustworthy for users of financial statements. Material information is significant enough to affect the decisions of investors, creditors, or other users. If leaving it out or misstating it could influence a decision, it is material. Relevant information is information that relates directly to the issue being considered and is useful for decision-making.
These concepts help ensure that accounting information is useful, dependable, and meaningful. Relevance focuses on usefulness, reliability focuses on trustworthiness, materiality focuses on significance, and conservatism focuses on caution under uncertainty. Together, they support better financial statement preparation and interpretation. In this matching question, each term lines up with its most standard accounting definition, so the correct matches are exactly as shown above.
Which two item subtotals are included in a multi-step income statement?
Choose 2 answers.
- A. Current liabilities
- B. Income from operations
- C. Gross profit
- D. Total assets
Correct Answer: B,C 🗳️
Explanation: Only visible for TestInsides members. You can sign-up / login (it's free).
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. $78,750
- B. $18,750
- C. $152,500
- D. $62,500
Correct Answer: C 🗳️
Explanation: Only visible for TestInsides members. You can sign-up / login (it's free).
Which formula yields a cash times interest earned ratio of 11?
- A. Cash before interest and taxes of $11,000 / cash from operations of $1,000
- B. Cash before interest and taxes of $11,000 / cash paid for income taxes of $1,000
- C. Cash before interest and taxes of $11,000 / cash paid for acquisitions of $1,000
- D. Cash before interest and taxes of $11,000 / cash paid for interest of $1,000
Correct Answer: D 🗳️
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