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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which body regulates a certified public accounting firm's audit practices when the firm is auditing a large, publicly traded company?

A) The Financial Accounting Standards Advisory Council (FASAC)
B) The Internal Revenue Service (IRS)
C) The Public Company Accounting Oversight Board (PCAOB)
D) The Financial Accounting Standards Board (FASB)

2. 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) Investments will increase by $900,000
D) Stockholders' equity will increase by $900,000

3. Which costs are found in a manufacturing company rather than a service-oriented company?

A) Indirect labor costs
B) Raw materials costs
C) Selling costs
D) Direct labor costs

4. Which two costs would be used to calculate inventory overhead?
Choose 2 answers.

A) Factory electricity costs
B) Production employee benefits
C) Administrative employee benefits
D) Administrative office electricity costs

5. A company collects 20% of the credit sales in the month of sale and the rest is collected equally in the following two months. The company made the following credit sales:
January = $500,000
February = $420,000
March = $545,000
April = $550,000
May = $555,000
June = $567,000
July = $600,000
Which is the correct amount of cash collection in the month of September?

A) $658,000
B) $624,000
C) $670,000
D) $625,000

Solutions: