Real WGU Accounting-for-Decision-Makers practice exam questions for easy pass!
Last Updated: Aug 09, 2026
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| Section | Objectives |
|---|---|
| Business Decision Support | - Performance Measurement
|
| Financial Accounting Fundamentals | - Accounting Principles
|
| Managerial Accounting for Decision Making | - Cost Behavior
|
1. Which formula yields a cash times interest earned ratio of 11?
A) Cash before interest and taxes of $11,000 / cash paid for income taxes 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 from operations of $1,000
2. Which source of cash is the best indicator of a firm's viability as an ongoing concern?
A) Cash from operating activities
B) Cash from financing activities
C) Cash from production activities
D) Cash from investing activities
3. What is true regarding the use of International Financial Reporting Standards (IFRS)?
A) IFRS are commonly required to be used in Asia
B) IFRS may be used instead of generally accepted accounting principles (GAAP) by any U.S.-based corporation
C) IFRS are required to be used by the Securities and Exchange Commission (SEC)
D) IFRS are seldom used by non-U.S. companies
4. A company manufactures and sells widgets. The following information is available:
* Total fixed costs per month are $300,000
* The variable cost per widget is $50
* Each widget sells for $100
How many widgets does the company need to sell each month to break even?
A) 6,000
B) 3,000
C) 2,000
D) 4,500
5. The following list provides partial financial information for a company.
Current assets = $36,543
Total assets = $58,719
Current liabilities = $24,824
Total liabilities = $48,561
Stockholders' equity = $10,158
Sales = $46,997
Net income = $3,761
Market value of equity = $41,316
What is the current ratio for this company?
A) 0.83
B) 1.38
C) 1.47
D) 4.78
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: A | Question # 3 Answer: A | Question # 4 Answer: A | Question # 5 Answer: C |
Zona
August
Broderick
Darnell
Ford
Humphrey
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