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WGU Accounting-for-Decision-Makers Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Financial Statement Analysis | - Horizontal and vertical analysis - Ratio analysis (liquidity, profitability, solvency, efficiency ratios) - Interpreting financial data for decision-making purposes |
| Financial Accounting Fundamentals | - Understanding the accounting cycle - Accrual vs. cash basis accounting - Recording transactions and adjusting entries - Preparing financial statements (Income Statement, Balance Sheet, Statement of Cash Flows) |
| Budgeting and Planning | - Operating budgets (sales, production, direct materials, direct labor, overhead) - Variance analysis - Master budget components - Financial budgets (cash budget, budgeted income statement, budgeted balance sheet) |
| Decision Making and Performance Evaluation | - Capital budgeting techniques (NPV, IRR, Payback Period) - Make-or-buy and special order decisions - Balanced Scorecard concepts - Responsibility accounting and performance metrics - Relevant costs for decision making |
| Managerial Accounting Concepts | - Cost-Volume-Profit (CVP) analysis - Job order and process costing - Contribution margin and break-even analysis - Cost classification and behavior (fixed, variable, mixed costs) |
WGU Accounting for Decision Makers C213 VAC2 Sample Questions:
Which information does a balance sheet provide about a company?
- A. Cash collections and cash expenditures at a specific point in time
- B. Cash collections and cash expenditures for a period of time
- C. Assets and liabilities for a specific point in time
- D. Revenues and expenses for a period of time
Correct Answer: C 🗳️
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During the year, a company purchased goods on a credit basis for its supplies of $750.
What would be the impact on the accounting equation and financial statement?
- A. Decrease in assets by $750 and increase in liability by $750
- B. Increase in assets by $750 and decrease in liability by $750
- C. Increase in assets by $750 and increase in liability by $750
- D. Decrease in assets by $750 and decrease in liability by $750
Correct Answer: C 🗳️
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How are activity-based costing systems different from traditional costing systems?
- A. Activity-based costing systems require less time and expense to administer than traditional costing systems
- B. Activity-based costing systems are used with homogeneous products while traditional costing systems are used with heterogeneous products
- C. Activity-based costing systems are based on a single cost driver and traditional costing systems are based on multiple cost drivers
- D. Activity-based costing systems provide a more precise assignment of overhead costs when multiple products are manufactured than traditional costing systems do
Correct Answer: D 🗳️
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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 total assets
- C. The company has 1.5% more total liabilities than net income
- D. The company has 1.5% more total liabilities than gross sales
Correct Answer: B 🗳️
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Last year, X Corporation had sales of $500,000 and total expenses of $300,000. A manager of the company is entitled to get a sales commission of 10% of net profit.
What amount of sales commission is to be recognized at year-end?
- A. $50,000
- B. $30,000
- C. $10,000
- D. $20,000
Correct Answer: D 🗳️
Explanation: Only visible for Real4Prep members. You can sign-up / login (it's free).
