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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which balance sheet category reflects what a company owns that can be turned into cash or used to generate cash?

A) Revenues
B) Assets
C) Owners' equity
D) Liabilities

2. 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) -$55,000
B) -$310,000
C) -$280,000
D) -$325,000

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. Where should a company report cash payments to acquire or construct long-term fixed assets on a statement of cash flows?

A) Cash flows from financing activities
B) Cash flows from operating activities
C) Cash flows from investing activities
D) Cash flows from business activities

5. A company allocates overhead based on the number of shoes produced.
The company estimates the following costs and shoe production for the upcoming year:
Estimated total overhead = $1,250,000
Estimated number of shoes = 4,000,000
Actual overhead = $1,350,000
Actual number of shoes = 4,100,000
What is the predetermined overhead rate?

A) $0.375
B) $0.329
C) $0.343
D) $0.313

Solutions: