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

SectionWeightObjectives
Topic 1: Budgeting and Decision Making10–15%- Master budget and components
  • 1. Cash budgeting and forecasting
  • 2. Operating and financial budgets
- Relevant information for decision making
  • 1. Capital budgeting basics
  • 2. Make-or-buy, special order, keep-or-drop decisions
Topic 2: Financial Analysis45–50%- Purpose and components of financial statements
  • 1. GAAP and reporting standards
  • 2. Balance sheet, income statement, cash flow statement
- Financial statement analysis techniques
  • 1. Trend and comparative analysis
  • 2. Ratio analysis: liquidity, profitability, solvency
Topic 3: Profit Planning10–15%- Cost-volume-profit (CVP) analysis
  • 1. Sensitivity analysis
  • 2. Break-even and target profit calculations
Topic 4: Controls and Regulations10–15%- Internal control systems and principles
  • 1. Risk assessment and control activities
  • 2. Compliance with laws and regulations
Topic 5: Cost Systems20–25%- Costing methods
  • 1. Activity-based costing (ABC)
  • 2. Traditional costing
- Cost concepts and classification
  • 1. Variable, fixed, mixed costs
  • 2. Direct vs indirect costs

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WGU Accounting for Decision Makers C213 VAC2 Sample Questions (Q19-Q24):

NEW QUESTION # 19
Which two procedures do external auditors use to gain confidence in the quality of a company's financial reporting processes?
Choose 2 answers.

Answer: A,E

Explanation:
The correct answers are A and C . External auditors gather audit evidence by examining accounting records and supporting documents and by obtaining evidence directly from third parties . PCAOB standards describe confirmation as a procedure for obtaining audit evidence from a knowledgeable external source, and this is commonly used for items such as cash, receivables, and certain terms of transactions.
Examining records to support balances and transactions is another core audit procedure. Auditors inspect invoices, contracts, bank statements, reconciliations, journals, and other documentation to determine whether reported balances are supported and fairly stated. These procedures directly relate to the reliability of financial reporting. In contrast, customer satisfaction surveys, marketing analysis, and public-image polling may be useful for business strategy or branding, but they are not standard external audit procedures used to support financial statement assertions. Audit work focuses on relevant, reliable evidence tied to existence, completeness, valuation, rights and obligations, and presentation. Therefore, the two valid procedures are examining records and obtaining third-party confirmations , making A and C the correct answers.


NEW QUESTION # 20
Which information does a balance sheet provide about a company?

Answer: C

Explanation:
A balance sheet shows the company's financial position at a specific point in time , so Option C is correct.
It reports what the business owns (assets), what it owes (liabilities), and usually owners' or stockholders' equity as of a particular date. This is why the balance sheet is often described as a snapshot rather than a report covering a span of time. Authoritative accounting learning materials describe the balance sheet as presenting assets, liabilities, and equity "as of" a date or at a specific moment.
Option A is incorrect because revenues and expenses for a period of time belong to the income statement , not the balance sheet. Option D is incorrect because cash collections and cash expenditures for a period of time are presented in the statement of cash flows . Option B is also incorrect because cash inflows and outflows are not reported only at a single point in time; they are summarized over a period. Therefore, the best answer is the one identifying the balance sheet as a statement of assets and liabilities at a specific point in time .


NEW QUESTION # 21
Which role do ethical standards have in management accounting?

Answer: D


NEW QUESTION # 22
Which two costs would be used to calculate inventory overhead?
Choose 2 answers.

Answer: C,D

Explanation:
The correct answers are A. Factory electricity costs and C. Production employee benefits . Inventory overhead, more commonly called manufacturing overhead , includes indirect production costs incurred in the factory that cannot be traced directly to a specific unit of output. Factory utilities such as electricity used to run production equipment are standard manufacturing overhead items, and production-related employee benefits are also part of factory overhead when they relate to manufacturing personnel rather than direct administrative staff. AccountingCoach lists factory electricity and factory personnel costs other than direct labor as examples of manufacturing overhead.
Option B. Administrative office electricity costs and D. Administrative employee benefits are not inventory overhead. They are period costs or administrative expenses because they relate to general office operations rather than production. Inventory costs include those necessary to bring goods to a saleable condition, while administrative costs are expensed in the period incurred. Therefore, the two costs that belong in inventory overhead are the factory-related utility cost and the production-related employee benefit cost.
That makes A and C the correct answers.


NEW QUESTION # 23
What does it mean if a company has a debt ratio of 101.5%?

Answer: B


NEW QUESTION # 24
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