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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

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

2. A company's statement of cash flows includes the following cash transactions.
Sales = $1,250,000
Inventory purchase = -$750,000
Property and equipment purchase = -$280,000
Interest payment on long-term debt = -$25,000
Payment of wages = -$315,000
Payment of rent = -$40,000
Borrowing long-term debt = $200,000
Payment of cash dividends = -$15,000
Repurchase of treasury stock = -$40,000
Total cash flows = -$5,000
What is the total cash flow from investing activities?

A) -$55,000
B) -$310,000
C) -$280,000
D) -$325,000

3. A company has three product lines and has historically used the traditional costing system to allocate overhead costs to each product line. Due to significant differences in the production processes for the three product lines, the company implemented an activity-based costing study and identified the activity-based cost for each product, as shown in the following table.
Product A
Product B
Product C
Traditional cost per unit
$558
$1,375
$1,211
Activity-based cost per unit
$675
$1,585
$1,350
Selling price per unit
$650
$1,450
$1,300
What do these data points reveal about the selling price of this company's products?

A) The selling price for only Products A and C should increase
B) No change should be made to the selling price
C) The selling price should increase for all three products
D) The selling price for only Product B should increase

4. Under the Sarbanes-Oxley Act, which requirement must an accounting firm that audits public companies meet?

A) The firm cannot be retained only by the CFO
B) The firm cannot use any forms of advertising to obtain new audit clients
C) The firm cannot audit a company for more than five years
D) The firm cannot provide several nonaudit services such as internal audit outsourcing to its audit clients

5. 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) $152,500
B) $78,750
C) $62,500
D) $18,750

Solutions: