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

SectionObjectives
Financial Accounting Fundamentals- Financial Statements
  • 1. Income Statement analysis
    • 2. Balance Sheet structure
      • 3. Cash Flow Statement basics
        - Accounting Principles
        • 1. Accrual vs cash accounting
          • 2. Revenue recognition concepts
            Managerial Accounting for Decision Making- Cost-Volume-Profit Analysis
            • 1. Break-even analysis
              • 2. Contribution margin concepts
                - Cost Behavior
                • 1. Fixed vs variable costs
                  • 2. Mixed costs analysis
                    - Budgeting and Planning
                    • 1. Forecasting and variance analysis
                      • 2. Operating budgets
                        Business Decision Support- Relevant Costing
                        • 1. Make or buy decisions
                          • 2. Differential cost analysis
                            - Performance Measurement
                            • 1. Responsibility accounting concepts
                              • 2. Financial ratios overview

                                WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

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


                                2. Which user group of financial statements evaluates the ability to repay loans?

                                A) Investors
                                B) Lenders
                                C) Management
                                D) Suppliers


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


                                4. What is true regarding the use of International Financial Reporting Standards (IFRS)?

                                A) IFRS are required to be used by the Securities and Exchange Commission (SEC)
                                B) IFRS are seldom used by non-U.S. companies
                                C) IFRS are commonly required to be used in Asia
                                D) IFRS may be used instead of generally accepted accounting principles (GAAP) by any U.S.-based corporation


                                5. Who does Sarbanes-Oxley apply to?

                                A) Nonpublic companies in the United States
                                B) Nonpublic wholly-owned subsidiaries of foreign companies doing business in the United States
                                C) Publicly traded companies in the United States
                                D) Publicly traded, wholly-owned subsidiaries of foreign companies doing business in the United States


                                Solutions:

                                Question # 1
                                Answer: A,C
                                Question # 2
                                Answer: B
                                Question # 3
                                Answer: C
                                Question # 4
                                Answer: C
                                Question # 5
                                Answer: C

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