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

SectionObjectives
Managerial Accounting Concepts- Job order and process costing
- Contribution margin and break-even analysis
- Cost-Volume-Profit (CVP) analysis
- Cost classification and behavior (fixed, variable, mixed costs)
Budgeting and Planning- Operating budgets (sales, production, direct materials, direct labor, overhead)
- Master budget components
- Variance analysis
- Financial budgets (cash budget, budgeted income statement, budgeted balance sheet)
Financial Accounting Fundamentals- Recording transactions and adjusting entries
- Accrual vs. cash basis accounting
- Preparing financial statements (Income Statement, Balance Sheet, Statement of Cash Flows)
- Understanding the accounting cycle
Financial Statement Analysis- Interpreting financial data for decision-making purposes
- Horizontal and vertical analysis
- Ratio analysis (liquidity, profitability, solvency, efficiency ratios)
Decision Making and Performance Evaluation- Responsibility accounting and performance metrics
- Capital budgeting techniques (NPV, IRR, Payback Period)
- Relevant costs for decision making
- Balanced Scorecard concepts
- Make-or-buy and special order decisions

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

Question #1

What does it mean if a company has a debt ratio of 101.5%?

  • A. The company has 1.5% more total liabilities than net income
  • B. The company has 1.5% more total liabilities than total assets
  • C. The company has 1.5% more total liabilities than gross sales
  • D. The company has 1.5% more current liabilities than current assets
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #2

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. 1.47
  • B. 4.78
  • C. 0.83
  • D. 1.38
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #3

Which role do ethical standards have in management accounting?

  • A. To prevent all unethical behavior of anyone the management accountant may work with
  • B. To guide the resolution to possible ethical dilemmas that the managerial accountant may encounter
  • C. To provide the management accountant with the ability to know whether a person will act ethically or not
  • D. To provide the management accountant with the ability to work with only companies that follow strict ethical principles
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #4

Which information does a balance sheet provide about a company?

  • A. Assets and liabilities for a specific point in time
  • B. Cash collections and cash expenditures for a period of time
  • C. Cash collections and cash expenditures at a specific point in time
  • D. Revenues and expenses for a period of time
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #5

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

  • A. The firm cannot provide several nonaudit services such as internal audit outsourcing to its audit clients
  • B. The firm cannot use any forms of advertising to obtain new audit clients
  • C. The firm cannot be retained only by the CFO
  • D. The firm cannot audit a company for more than five years
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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