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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. What purpose do the notes within financial statements serve to the Financial Accounting Standards Board?

A) Providing supplementary information as needed
B) Summarizing totals of financial statements
C) Providing a summary of accounting policies
D) Disclosing financial statistics

2. 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 total liabilities than total assets
C) The company has 1.5% more current liabilities than current assets
D) The company has 1.5% more total liabilities than net income

3. 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) $18,500
C) $24,750
D) $27,300

4. A company plans to purchase inventory for the second half of a year as follows:
July = $100,000
August = $75,000
September = $225,000
October = $125,000
November = $250,000
December = $30,000
The company usually pays 50% of inventory purchases in the month of purchase, 35% in the following month, and 15% in the second month.
What are the forecasted October cash payments based on this information?

A) $18,750
B) $78,750
C) $152,500
D) $62,500

5. 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) Decrease in assets by $750 and increase in liability by $750
D) Increase in assets by $750 and decrease in liability by $750

Solutions: