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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. 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

2. 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) $27,300
B) $25,050
C) $18,500
D) $24,750

3. Which role do ethical standards have in management accounting?

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

4. Which two items on an income statement result in decreased net income if they are increased?
Choose 2 answers.

A) Revenues
B) Gains
C) Interest expense
D) Cost of goods sold

5. A company prepared the following contribution margin income statement for the actual sale of 10,000 shoes:
Sales revenue = $600,000
Variable costs = $400,000
Contribution margin = $200,000
Less fixed costs = $150,000
Net income = $50,000
What would be the forecasted net income for the sale of 14,000 shoes based on the actual results above?

A) $40,000
B) $70,000
C) $230,000
D) $130,000

Solutions: