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

SectionObjectives
Business Decision Support- Performance Measurement
  • 1. Financial ratios overview
    • 2. Responsibility accounting concepts
      - Relevant Costing
      • 1. Make or buy decisions
        • 2. Differential cost analysis
          Financial Accounting Fundamentals- Accounting Principles
          • 1. Accrual vs cash accounting
            • 2. Revenue recognition concepts
              - Financial Statements
              • 1. Income Statement analysis
                • 2. Cash Flow Statement basics
                  • 3. Balance Sheet structure
                    Managerial Accounting for Decision Making- Cost Behavior
                    • 1. Mixed costs analysis
                      • 2. Fixed vs variable costs
                        - Budgeting and Planning
                        • 1. Operating budgets
                          • 2. Forecasting and variance analysis
                            - Cost-Volume-Profit Analysis
                            • 1. Break-even analysis
                              • 2. Contribution margin concepts

                                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 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

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