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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. What is a significant role of the U.S. Securities and Exchange Commission (SEC) in financial reporting?

A) The SEC supports company management and boards of directors in the effective discharge of their responsibilities
B) The SEC ensures that financial statement users are provided with reliable information to use in decision- making
C) The SEC ensures that auditors have the resources and information necessary to provide valuable professional services
D) The SEC provides representation and training to controllers of public companies

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

3. 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) 4.78
C) 1.38
D) 1.47

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

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

5. Given the following information:
Pairs of shoes expected to be produced = 1,950,000
Pairs of shoes produced = 2,500,000
Overhead rate = $0.75
What is the amount of applied overhead?

A) $1,875,000
B) $412,500
C) $1,462,500
D) $550,000

Solutions: