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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which ratio provides a measure of how well a company turns sales into profits?

A) Return on costs
B) Return on expenses
C) Return on sales
D) Return on profit

2. 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) $25,050
B) $27,300
C) $24,750
D) $18,500

3. 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) Increase in assets by $750 and decrease in liability by $750
B) Decrease 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 increase in liability by $750

4. 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 net income
D) The company has 1.5% more total liabilities than total assets

5. 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 provide a more precise assignment of overhead costs when multiple products are manufactured than traditional costing systems do
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 are used with homogeneous products while traditional costing systems are used with heterogeneous products

Solutions: