WGU Accounting for Decision Makers C213 VAC2 : Accounting-for-Decision-Makers

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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. The following list provides partial financial information for a company.
Financial Category | 20X3 | 20X2
Net income | $3,540 | ?
Cash from operations | $4,417 | ?
Cash paid for capital expenditures | $5,613 | ?
Cash paid for acquisitions | $5,964 | ?
Cash paid for interest | $2,782 | ?
Cash paid for income taxes | $2,860 | ?
What is the cash flow to net income ratio for this company in 20X2?

A) 1.80
B) 1.35
C) 2.45
D) -0.01

2. A company plans to purchase inventory for the second half of a year as follows:
July = $100,000
August = $75,000
September = $225,000
October = $125,000
November = $250,000
December = $30,000
The company usually pays 50% of inventory purchases in the month of purchase, 35% in the following month, and 15% in the second month.
What are the forecasted October cash payments based on this information?

A) $18,750
B) $62,500
C) $78,750
D) $152,500

3. What is an advantage of the indirect method of the cash flow statement?

A) Easy to avoid making mistakes because the method reveals indirect costs
B) Easy for a novice to decipher operating cash flow information
C) Easy to reconcile between net income and cash flows
D) Easy to highlight the difference between direct and indirect costs

4. Which change occurred if the cost of goods sold moved from 76.8% to 72.6%?

A) Gross profit percentage decreased by 4.2%
B) Gross profit percentage increased by 4.2%
C) Net profit percentage increased by 4.2%
D) Net profit percentage decreased by 4.2%

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

Solutions: