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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. During the year, a company purchased goods on a credit basis for its supplies of $750.
What would be the impact on the accounting equation and financial statement?

A) Increase in assets by $750 and increase in liability by $750
B) Decrease in assets by $750 and increase in liability by $750
C) Increase in assets by $750 and decrease in liability by $750
D) Decrease in assets by $750 and decrease in liability by $750

2. Which two procedures do external auditors use to gain confidence in the quality of a company's financial reporting processes?
Choose 2 answers.

A) They perform a marketing analysis to determine demand for the company's products or services
B) They examine records to support balances and transactions
C) They poll the public regarding the company's external image
D) They conduct a customer satisfaction survey
E) They obtain confirmations from third parties the company does business with

3. Given the following information:
Pairs of shoes expected to be produced = 1,950,000
Pairs of shoes produced = 2,500,000
Overhead rate = $0.75
What is the amount of applied overhead?

A) $1,875,000
B) $412,500
C) $550,000
D) $1,462,500

4. In January of Year 1, a company began doing business as a corporation in order to sell technology-related accessories and services. During its first month of operations, the following events occurred:
January 1
The corporation received $900,000 in cash in exchange for stock issued to stockholders.
January 3
The corporation borrowed $250,000 from a bank. The loan is a four-year loan with an interest rate of 12%, payable each year on January 1 beginning in Year 2.
January 5
The corporation purchased equipment to be used in the business for $200,000 cash.
January 8
The corporation purchased inventory costing $200,000 by paying $120,000 in cash. The remainder was put on credit accounts with suppliers.
January 15
The corporation hired five employees. Each employee will be paid $1,000 at the end of each month.
January 30
The corporation paid $6,000 cash for a one-year insurance policy. The policy period will begin on February 1, Year 1.
What will be the impact of the January 1 event on the company's balance sheet on that date, along with an increase to cash of $900,000?

A) Stockholders' equity will increase by $900,000
B) Retained earnings will increase by $900,000
C) Investments will increase by $900,000
D) Loan payable will increase by $900,000

5. 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) 0.83
B) 1.38
C) 1.47
D) 4.78

Solutions: