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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

Question 1

A company has projected the following sales for the spring quarter of a year:
April = $300,000
May = $325,000
June = $375,000
Cash is used to pay for 65% of all sales. The remainder is on credit.
The pattern for credit receivables collections is as follows:
* Month of sale = 60%
* Month after sale = 30%
* Second month after sale = 10%
What are the projected cash sales for all three months of the spring quarter?

A. $350,000
B. $195,000
C. $650,000
D. $105,000

Question 2

A company collects 20% of the credit sales in the month of sale and the rest is collected equally in the following two months. The company made the following credit sales:
January = $500,000
February = $420,000
March = $545,000
April = $550,000
May = $555,000
June = $567,000
July = $600,000
Which is the correct amount of cash collection in the month of September?

A. $670,000
B. $624,000
C. $658,000
D. $625,000

Question 3

Which technique describes the practice of incurring debt but fully paying the debt over time?

A. Liability deferral
B. Accounting management
C. Profit control
D. Income smoothing

Question 4

Which two item subtotals are included in a multi-step income statement?
Choose 2 answers.

A. Gross profit
B. Total assets
C. Income from operations
D. Current liabilities

Question 5

What can be determined when a firm performs an external audit of a company's financial statements?

A. Whether a company's financial statements were prepared by a trained bookkeeper
B. Whether a company's financial statements indicate it made a profit
C. Whether a company's financial statements indicate that the company has to pay income taxes
D. Whether a company's financial statements fairly reflect its financial position

Solutions: