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WGU Accounting-for-Decision-Makers Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Managerial Accounting Concepts | - Cost classification and behavior (fixed, variable, mixed costs) - Job order and process costing - Contribution margin and break-even analysis - Cost-Volume-Profit (CVP) analysis |
| Topic 2: Financial Accounting Fundamentals | - Understanding the accounting cycle - Preparing financial statements (Income Statement, Balance Sheet, Statement of Cash Flows) - Recording transactions and adjusting entries - Accrual vs. cash basis accounting |
| Topic 3: Budgeting and Planning | - Operating budgets (sales, production, direct materials, direct labor, overhead) - Financial budgets (cash budget, budgeted income statement, budgeted balance sheet) - Master budget components - Variance analysis |
| Topic 4: Decision Making and Performance Evaluation | - Balanced Scorecard concepts - Relevant costs for decision making - Capital budgeting techniques (NPV, IRR, Payback Period) - Responsibility accounting and performance metrics - Make-or-buy and special order decisions |
| Topic 5: Financial Statement Analysis | - Interpreting financial data for decision-making purposes - Horizontal and vertical analysis - Ratio analysis (liquidity, profitability, solvency, efficiency ratios) |
WGU Accounting for Decision Makers C213 VAC2 Sample Questions:
Match each accounting term with its definition.
Answer options may be used more than once or not at all.
Select your answer from the pull-down list.
Correct Answer:
Explanation:
Conservatism - Information related to recognizing losses as they occur
Reliable - Information that can be verified
Material - Information that is important enough to make a difference
Relevant - Information having to do with the matter at hand
These accounting terms describe important qualitative ideas used in financial reporting. Conservatism means accountants should use caution when uncertainty exists, especially by recognizing potential losses sooner rather than delaying them. Reliable information is information that can be supported, confirmed, or verified, which makes it trustworthy for users of financial statements. Material information is significant enough to affect the decisions of investors, creditors, or other users. If leaving it out or misstating it could influence a decision, it is material. Relevant information is information that relates directly to the issue being considered and is useful for decision-making.
These concepts help ensure that accounting information is useful, dependable, and meaningful. Relevance focuses on usefulness, reliability focuses on trustworthiness, materiality focuses on significance, and conservatism focuses on caution under uncertainty. Together, they support better financial statement preparation and interpretation. In this matching question, each term lines up with its most standard accounting definition, so the correct matches are exactly as shown above.
What are two examples of product costs?
Choose 2 answers.
- A. Raw materials
- B. Direct labor
- C. Selling and administrative expenses
- D. Period expenses
Correct Answer: A,B 🗳️
Explanation: Only visible for Pass4suresVCE members. You can sign-up / login (it's free).
Which user group of financial statements evaluates the ability to repay loans?
- A. Lenders
- B. Suppliers
- C. Management
- D. Investors
Correct Answer: A 🗳️
Explanation: Only visible for Pass4suresVCE members. You can sign-up / login (it's free).
How does management accounting differ from financial accounting?
- A. Management accounting is used primarily for internal planning, control, and evaluation
- B. Management accounting is restricted to providing financial rather than nonfinancial data
- C. Management accounting presents an unbiased view of a company's economic performance
- D. Management accounting is not used to gain a competitive advantage in the marketplace
Correct Answer: A 🗳️
Explanation: Only visible for Pass4suresVCE members. You can sign-up / login (it's free).
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. $650,000
- C. $350,000
- D. $195,000
Correct Answer: B 🗳️
Explanation: Only visible for Pass4suresVCE members. You can sign-up / login (it's free).
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