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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. What does it mean if a company has a debt ratio of 101.5%?

A) The company has 1.5% more total liabilities than total assets
B) The company has 1.5% more total liabilities than net income
C) The company has 1.5% more current liabilities than current assets
D) The company has 1.5% more total liabilities than gross sales

2. Which technique describes the practice of incurring debt but fully paying the debt over time?

A) Accounting management
B) Income smoothing
C) Liability deferral
D) Profit control

3. Which source of cash is the best indicator of a firm's viability as an ongoing concern?

A) Cash from financing activities
B) Cash from investing activities
C) Cash from production activities
D) Cash from operating activities

4. Which financial statement is used to determine a company's income and expenses for a specific period?

A) Statement of cash flows
B) Balance sheet
C) Income statement
D) Statement of retained earnings

5. Last year, X Corporation had sales of $500,000 and total expenses of $300,000. A manager of the company is entitled to get a sales commission of 10% of net profit.
What amount of sales commission is to be recognized at year-end?

A) $30,000
B) $10,000
C) $20,000
D) $50,000

Solutions: