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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. 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 provide the management accountant with the ability to know whether a person will act ethically or not
C) To guide the resolution to possible ethical dilemmas that the managerial accountant may encounter
D) To provide the management accountant with the ability to work with only companies that follow strict ethical principles

2. A company manufactures leather products and has recently switched to the activity-based costing (ABC) method. It needs to determine the cost of its leather wallets. The company is already aware of its DM and DL costs.
What is the first step to calculating the cost of the product?

A) Calculate G & A
B) Double check the DM & DL calculations
C) Identify overhead cost activities
D) Assign overhead costs

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

A) The company has 1.5% more current liabilities than current assets
B) The company has 1.5% more total liabilities than net income
C) The company has 1.5% more total liabilities than gross sales
D) The company has 1.5% more total liabilities than total assets

4. Which current asset on a balance sheet appears first in the traditional category order for U.S.-based companies?

A) Prepaid expenses
B) Accounts receivable
C) Cash
D) Inventory

5. Which formula yields a cash times interest earned ratio of 11?

A) Cash before interest and taxes of $11,000 / cash paid for acquisitions of $1,000
B) Cash before interest and taxes of $11,000 / cash paid for income taxes of $1,000
C) Cash before interest and taxes of $11,000 / cash from operations of $1,000
D) Cash before interest and taxes of $11,000 / cash paid for interest of $1,000

Solutions: