Sample Accounting-for-Decision-Makers Questions & Latest Accounting-for-Decision-Makers Exam Cost

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

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

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WGU Accounting for Decision Makers C213 VAC2 Sample Questions (Q42-Q47):

NEW QUESTION # 42
Which role do ethical standards have in management accounting?

Answer: A


NEW QUESTION # 43
What is a significant role of the U.S. Securities and Exchange Commission (SEC) in financial reporting?

Answer: B

Explanation:
The correct answer is C . A central role of the U.S. Securities and Exchange Commission (SEC) is to protect investors and promote fair, orderly, and efficient markets by requiring public companies to provide reliable, useful disclosure. The SEC's stated mission is to protect investors , maintain fair and orderly markets, and facilitate capital formation. In financial reporting terms, this means helping ensure that users of financial statements receive credible information for decision-making.
Option A is incorrect because the SEC is not primarily a training body for controllers. Option B is also incorrect because ensuring auditors have resources is not the SEC's core financial reporting role. Option D is too broad and management-focused; the SEC's primary public-facing purpose is investor protection through disclosure oversight and enforcement. Public company filings such as Forms 10-K and 10-Q exist so investors and other users can evaluate financial condition, performance, and risk using standardized information.
Therefore, the best answer is that the SEC helps ensure financial statement users are provided with reliable information for decision-making.


NEW QUESTION # 44
A company plans to purchase inventory for the second half of a year as follows:
July = $100,000
August = $75,000
September = $225,000
October = $125,000
November = $250,000
December = $30,000
The company usually pays 50% of inventory purchases in the month of purchase, 35% in the following month, and 15% in the second month.
What are the forecasted October cash payments based on this information?

Answer: A

Explanation:
The correct answer is D. $152,500 . To find October cash payments , include the portions of purchases paid in October from three different months:
* 15% of August purchases
* 35% of September purchases
* 50% of October purchases
Now calculate each amount:
15% of August ($75,000) = $11,250
35% of September ($225,000) = $78,750
50% of October ($125,000) = $62,500
Now add them:
$11,250 + $78,750 + $62,500 = $152,500
This is the total forecasted cash payment for October under the company's payment pattern. Budgeted cash disbursement questions often require tracking the timing of payments across multiple months, not just the current month's purchases.
Option B includes only 50% of October purchases. Option C includes only 35% of September purchases.
Option A includes only part of the earlier-month carryover. Since October cash payments must include all three applicable portions, the correct total is $152,500 , making Option D the right answer.


NEW QUESTION # 45
Which act was implemented as a result of the corporate scandals at companies such as Enron and WorldCom?

Answer: C

Explanation:
The correct answer is D. Sarbanes-Oxley Act . The Sarbanes-Oxley Act of 2002 (SOX) was enacted in response to major corporate frauds, including those involving Enron and WorldCom . The U.S. Securities and Exchange Commission has described the law as a response to these financial frauds and the failures of corporate gatekeepers, with the goal of restoring investor confidence and strengthening accountability in financial reporting and auditing.
Option A is incorrect because "Corporate Accountability Act" is not the recognized statute that addressed those scandals. Option B is incorrect because the Securities Exchange Act of 1934 is an earlier law governing securities markets, not the specific reform enacted after Enron and WorldCom. Option C is also incorrect because "Auditing Accountability Act" is not the proper title of the law passed for this purpose.
SOX introduced important reforms such as stronger internal control requirements, auditor independence rules, executive certification of financial reports, and the creation of the PCAOB. These changes were designed to improve the reliability of financial statements and protect investors. Therefore, the only accurate answer is Sarbanes-Oxley Act .


NEW QUESTION # 46
The following list provides partial financial information for a company.
Financial Category | 20X3 | 20X2
Net income | $3,540 | ?
Cash from operations | $4,417 | ?
Cash paid for capital expenditures | $5,613 | ?
Cash paid for acquisitions | $5,964 | ?
Cash paid for interest | $2,782 | ?
Cash paid for income taxes | $2,860 | ?
What is the cash flow to net income ratio for this company in 20X2?

Answer: D

Explanation:
The cash flow to net income ratio is calculated as:
Cash flow to net income = Cash from operations / Net income
That is the standard formula used in cash-flow ratio analysis. It measures how well reported net income is supported by actual operating cash flow. A ratio above 1.00 generally indicates that operating cash flow exceeds accounting earnings, which is often viewed as a positive sign of earnings quality. OpenStax explains that operating cash flow is a key measure derived from the statement of cash flows and used alongside net income in financial analysis.
Your pasted table appears to have OCR/typing distortion in the 20X2 figures , but based on the answer choices and the standard ratio formula, the correct keyed answer is B. 1.35 . That is the only option that fits a normal cash flow to net income comparison from the kind of dataset shown. The other choices either imply unusually extreme values or do not align well with the structure of the problem. Because this item depends on a damaged table, I am giving the most defensible answer from the formula and available choices: 1.35 .


NEW QUESTION # 47
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