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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. 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) -$325,000
B) -$310,000
C) -$280,000
D) -$55,000

2. Which ratio provides a measure of how well a company turns sales into profits?

A) Return on sales
B) Return on profit
C) Return on costs
D) Return on expenses

3. Which action should a managerial accountant consider taking if confronted by an ethical conflict?

A) Use an objective advisor confidentially
B) Confer with any stakeholder in the organization
C) Consult with a coworker
D) Report directly to the chief executive officer

4. Which overhead cost is associated with batch-level activities?

A) Property taxes
B) Product engineering wages
C) Factory insurance
D) Machine setups

5. 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) $18,500
B) $25,050
C) $24,750
D) $27,300

Solutions: