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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. In September, an airline using accrual accounting received cash from a round-trip ticket sold to a customer for
$1,500. The ticket allowed the customer to fly from Denver to Hawaii in October and from Hawaii back to Denver in November.
When should the airline recognize revenue?

A) In October and November
B) Only in September
C) Only in November
D) In September, October, and November

2. During the year, a company purchased goods on a credit basis for its supplies of $750.
What would be the impact on the accounting equation and financial statement?

A) Increase in assets by $750 and increase in liability by $750
B) Increase in assets by $750 and decrease in liability by $750
C) Decrease in assets by $750 and increase in liability by $750
D) Decrease in assets by $750 and decrease in liability by $750

3. Which formula yields a cash times interest earned ratio of 11?

A) Cash before interest and taxes of $11,000 / cash paid for acquisitions of $1,000
B) Cash before interest and taxes of $11,000 / cash from operations of $1,000
C) Cash before interest and taxes of $11,000 / cash paid for interest of $1,000
D) Cash before interest and taxes of $11,000 / cash paid for income taxes of $1,000

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

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

5. 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) $550,000
B) $1,875,000
C) $1,462,500
D) $412,500

Solutions: