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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. 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 interest 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 income taxes of $1,000

2. Who does Sarbanes-Oxley apply to?

A) Publicly traded, wholly-owned subsidiaries of foreign companies doing business in the United States
B) Nonpublic companies in the United States
C) Nonpublic wholly-owned subsidiaries of foreign companies doing business in the United States
D) Publicly traded companies in the United States

3. Which change occurred if the cost of goods sold moved from 76.8% to 72.6%?

A) Net profit percentage decreased by 4.2%
B) Net profit percentage increased by 4.2%
C) Gross profit percentage decreased by 4.2%
D) Gross profit percentage increased by 4.2%

4. What does the overall economic performance of a company for a given time period represent?

A) Whether or not a company's sales exceed the costs of the products sold for a given time period
B) The overall market value of the company
C) Whether or not cash received from sales exceeds cash paid for business expenses for a given time period
D) The net income of the company

5. Which technique describes the practice of incurring debt but fully paying the debt over time?

A) Profit control
B) Liability deferral
C) Income smoothing
D) Accounting management

Solutions: