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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which role do ethical standards have in management accounting?

A) To provide the management accountant with the ability to work with only companies that follow strict ethical principles
B) To guide the resolution to possible ethical dilemmas that the managerial accountant may encounter
C) To provide the management accountant with the ability to know whether a person will act ethically or not
D) To prevent all unethical behavior of anyone the management accountant may work with

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

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

3. Which item is an operating activity under a U.S. generally accepted accounting principles (GAAP) statement of cash flows?

A) Cash receipts from the sale of a business segment
B) Cash payments for administration expenses
C) Cash payments for purchase of plant assets
D) Cash receipts for the sale of plant assets

4. A corporation has liabilities and owners' equity of $100 million and $40 million respectively. What is the amount of the asset balance in this case?

A) $140 million
B) $80 million
C) $60 million
D) $25 million

5. A company budgeted the following purchases for raw materials:
January = $10,000
February = $20,000
March = $25,000
April = $22,000
May = $27,000
June = $30,000
July = $24,000
The company has a policy of paying for 40% of purchases in the month of the purchase, 35% in the month following the purchase, and 25% in the second month following the purchase.
What are the budgeted cash disbursements for May based on this information?

A) $18,500
B) $25,050
C) $24,750
D) $27,300

Solutions: