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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. A company has projected the following sales for the spring quarter of a year:
April = $300,000
May = $325,000
June = $375,000
Cash is used to pay for 65% of all sales. The remainder is on credit.
The pattern for credit receivables collections is as follows:
* Month of sale = 60%
* Month after sale = 30%
* Second month after sale = 10%
What are the projected cash sales for all three months of the spring quarter?

A) $350,000
B) $195,000
C) $650,000
D) $105,000

2. Which body regulates a certified public accounting firm's audit practices when the firm is auditing a large, publicly traded company?

A) The Financial Accounting Standards Board (FASB)
B) The Internal Revenue Service (IRS)
C) The Financial Accounting Standards Advisory Council (FASAC)
D) The Public Company Accounting Oversight Board (PCAOB)

3. What is an advantage of the indirect method of the cash flow statement?

A) Easy to highlight the difference between direct and indirect costs
B) Easy to reconcile between net income and cash flows
C) Easy to avoid making mistakes because the method reveals indirect costs
D) Easy for a novice to decipher operating cash flow information

4. 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 increase in liability by $750
B) Decrease in assets by $750 and decrease in liability by $750
C) Increase in assets by $750 and decrease in liability by $750
D) Decrease in assets by $750 and increase in liability by $750

5. What can be determined when a firm performs an external audit of a company's financial statements?

A) Whether a company's financial statements indicate that the company has to pay income taxes
B) Whether a company's financial statements indicate it made a profit
C) Whether a company's financial statements fairly reflect its financial position
D) Whether a company's financial statements were prepared by a trained bookkeeper

Solutions: