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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which two details can management determine through a cost-volume-profit analysis?
Choose 2 answers.

A) The impact that a change in cost would have on a business organization's profit margin in the future
B) The impact of a change in a business organization's number of units sold to reach a certain profit margin in the future
C) The impact of past transactions on a business organization's profit margin
D) The impact of past income tax costs on a business organization's profit margin

2. What can be deduced when a company has an asset turnover of 0.95?

A) The company was able to generate $0.95 in profit for each dollar in assets
B) The company was able to generate $0.95 in equity for each dollar in assets
C) The company was able to generate $0.95 in liabilities for each dollar in assets
D) The company was able to generate $0.95 in sales for each dollar in assets

3. What does the overall economic performance of a company for a given time period represent?

A) Whether or not a company's sales exceed the costs of the products sold for a given time period
B) The overall market value of the company
C) Whether or not cash received from sales exceeds cash paid for business expenses for a given time period
D) The net income of the company

4. What are the costs associated with two or more business units called?

A) Indirect costs
B) Product costs
C) Direct costs
D) Variable costs

5. 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) $105,000
B) $350,000
C) $650,000
D) $195,000

Solutions: