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

2. 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) -0.01
B) 1.80
C) 1.35
D) 2.45

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

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

4. Which two item subtotals are included in a multi-step income statement?
Choose 2 answers.

A) Current liabilities
B) Total assets
C) Gross profit
D) Income from operations

5. What is a significant role of the U.S. Securities and Exchange Commission (SEC) in financial reporting?

A) The SEC ensures that financial statement users are provided with reliable information to use in decision- making
B) The SEC ensures that auditors have the resources and information necessary to provide valuable professional services
C) The SEC supports company management and boards of directors in the effective discharge of their responsibilities
D) The SEC provides representation and training to controllers of public companies

Solutions: