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

Question 2

How are activity-based costing systems different from traditional costing systems?

A. Activity-based costing systems are used with homogeneous products while traditional costing systems are used with heterogeneous products
B. Activity-based costing systems provide a more precise assignment of overhead costs when multiple products are manufactured than traditional costing systems do
C. Activity-based costing systems are based on a single cost driver and traditional costing systems are based on multiple cost drivers
D. Activity-based costing systems require less time and expense to administer than traditional costing systems

Question 3

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. $24,750
C. $27,300
D. $25,050

Question 4

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. $1,462,500
C. $550,000
D. $412,500

Question 5

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

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

Solutions: