Free PDF Quiz 2026 Accounting-for-Decision-Makers: Useful WGU Accounting for Decision Makers C213 VAC2 Real Exam Answers

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

SectionWeightObjectives
Controls and Regulations10–15%- Internal control systems and principles
  • 1. Compliance with laws and regulations
  • 2. Risk assessment and control activities
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
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
Profit Planning10–15%- Cost-volume-profit (CVP) analysis
  • 1. Break-even and target profit calculations
  • 2. Sensitivity analysis
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

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Accounting-for-Decision-Makers Exam Questions Answers - Positive Accounting-for-Decision-Makers Feedback

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WGU Accounting for Decision Makers C213 VAC2 Sample Questions (Q47-Q52):

NEW QUESTION # 47
Which two procedures do external auditors use to gain confidence in the quality of a company's financial reporting processes?
Choose 2 answers.

Answer: B,C

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 # 48
A company prepared the following contribution margin income statement for the actual sale of 10,000 shoes:
Sales revenue = $600,000
Variable costs = $400,000
Contribution margin = $200,000
Less fixed costs = $150,000
Net income = $50,000
What would be the forecasted net income for the sale of 14,000 shoes based on the actual results above?

Answer: B

Explanation:
The correct answer is C. $130,000 . A contribution margin income statement separates variable costs from fixed costs , which makes it useful for forecasting profit at different sales levels. OpenStax explains that contribution margin analysis shows how much sales revenue remains after variable costs to cover fixed costs and profit.
First calculate the per-unit amounts based on 10,000 shoes:
Sales per unit = $600,000 / 10,000 = $60
Variable cost per unit = $400,000 / 10,000 = $40
Contribution margin per unit = $20
For 14,000 shoes , total contribution margin would be:
14,000 × $20 = $280,000
Now subtract fixed costs, which stay the same at $150,000 :
Forecasted net income = $280,000 - $150,000 = $130,000
So the company would expect to earn $130,000 if it sells 14,000 shoes. This is exactly why CVP and contribution margin statements are useful for planning: they allow managers to estimate the profit impact of volume changes quickly, as long as selling price, variable cost per unit, and fixed costs remain stable.
Therefore, Option C is correct.


NEW QUESTION # 49
What does it mean if a company has a debt ratio of 101.5%?

Answer: A


NEW QUESTION # 50
Where should a company report cash payments to acquire or construct long-term fixed assets on a statement of cash flows?

Answer: A

Explanation:
The correct answer is C. Cash flows from investing activities . Cash paid to acquire, build, or improve long- term fixed assets such as land, buildings, machinery, and equipment is classified as an investing cash outflow on the statement of cash flows. OpenStax explains that the investing section of the statement of cash flows relates to changes in long-term assets , which includes capital expenditures for property, plant, and equipment. FASB cash flow guidance also requires classifying cash receipts and payments as operating, investing, or financing based on the nature of the activity.
Option B is incorrect because operating activities relate to the core day-to-day revenue-producing operations of the company. Option D is incorrect because financing activities involve obtaining or repaying capital, such as borrowing, issuing stock, or paying dividends. Option A is not a standard reporting category under the statement of cash flows. Since buying or constructing long-term fixed assets represents investment in productive resources for future use, the correct classification is Cash flows from investing activities .


NEW QUESTION # 51
Which body regulates a certified public accounting firm's audit practices when the firm is auditing a large, publicly traded company?

Answer: A

Explanation:
The correct answer is D. The Public Company Accounting Oversight Board (PCAOB) . The PCAOB was created to oversee the audits of public companies and SEC-registered brokers and dealers in order to protect investors and support the public interest in accurate, independent audit reports. Its responsibilities include registration of audit firms, inspections, enforcement, and audit-related standard-setting. Because the question refers to a CPA firm auditing a large, publicly traded company , PCAOB oversight is the correct regulatory answer.
Option A is incorrect because FASB sets accounting standards, not audit practice regulation for public company auditors. Option B, FASAC , is an advisory council to FASB and does not regulate audit firms.
Option C, the IRS , administers tax laws and does not oversee external audit practices for public companies.
In accounting and auditing, it is essential to distinguish between those who set accounting rules and those who supervise auditors. For publicly traded companies, that audit oversight role belongs to the PCAOB , making Option D the only accurate choice.


NEW QUESTION # 52
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