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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

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

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

2. A corporation has liabilities and owners' equity of $100 million and $40 million respectively. What is the amount of the asset balance in this case?

A) $25 million
B) $140 million
C) $80 million
D) $60 million

3. 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

4. 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 total liabilities than gross sales
D) The company has 1.5% more current liabilities than current assets

5. What purpose do the notes within financial statements serve to the Financial Accounting Standards Board?

A) Summarizing totals of financial statements
B) Providing supplementary information as needed
C) Providing a summary of accounting policies
D) Disclosing financial statistics

Solutions: