[Nov-2026] Accounting-for-Decision-Makers Free Sample Questions to Practice One Year Update [Q23-Q42]

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[Nov-2026] Accounting-for-Decision-Makers Free Sample Questions to Practice One Year Update

Download Accounting-for-Decision-Makers exam with WGU Accounting-for-Decision-Makers Real Exam Questions

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

Section	Objectives
Topic 1: Financial Accounting Fundamentals	– Accounting Principles 1. Revenue recognition concepts 2. Accrual vs cash accounting – Financial Statements 1. Balance Sheet structure 2. Income Statement analysis 3. Cash Flow Statement basics
Topic 2: Managerial Accounting for Decision Making	– Cost-Volume-Profit Analysis 1. Contribution margin concepts 2. Break-even analysis – Cost Behavior 1. Fixed vs variable costs 2. Mixed costs analysis – Budgeting and Planning 1. Forecasting and variance analysis 2. Operating budgets
Topic 3: Business Decision Support	– Relevant Costing 1. Make or buy decisions 2. Differential cost analysis – Performance Measurement 1. Financial ratios overview 2. Responsibility accounting concepts

Section

Objectives

Topic 1: Financial Accounting Fundamentals

– Accounting Principles

1. Revenue recognition concepts
2. Accrual vs cash accounting

– Financial Statements

1. Balance Sheet structure
2. Income Statement analysis
3. Cash Flow Statement basics

Topic 2: Managerial Accounting for Decision Making

– Cost-Volume-Profit Analysis

1. Contribution margin concepts
2. Break-even analysis

– Cost Behavior

1. Fixed vs variable costs
2. Mixed costs analysis

– Budgeting and Planning

1. Forecasting and variance analysis
2. Operating budgets

Topic 3: Business Decision Support

– Relevant Costing

1. Make or buy decisions
2. Differential cost analysis

– Performance Measurement

1. Financial ratios overview
2. Responsibility accounting concepts

NO.23 Which source of cash is the best indicator of a firm’s viability as an ongoing concern?

Cash from operating activities

Cash from financing activities

Cash from investing activities

Cash from production activities

NO.24 Which organization establishes rules U.S. companies use to record and report accounting transactions?

Accounting Principles Board

Securities and Exchange Commission

Financial Accounting Standards Board

Internal Revenue Service

NO.25 Which events represent financial information recorded in the accounting system of a business?

Business events that are likely to occur in the future

Business events that have already occurred

Personal events of each business owner that are likely to occur in the future

Personal events of each business owner during a year

NO.26 Which two examples represent financial statement errors?
Choose 2 answers.

An accounting department miscalculates the payroll tax due at year-end, resulting in an inaccurate liability

An accounting employee overpays a supplier and receives a portion of the excess as a kickback

An accountant unintentionally records amounts as revenue that were prepaid by customers but not yet earned

An outside auditor disagrees with the amount reported as an allowance for uncollectible accounts receivable

NO.27 In January of Year 1, a company began doing business as a corporation in order to sell technology-related accessories and services. During its first month of operations, the following events occurred:
January 1
The corporation received $900,000 in cash in exchange for stock issued to stockholders.
January 3
The corporation borrowed $250,000 from a bank. The loan is a four-year loan with an interest rate of 12%, payable each year on January 1 beginning in Year 2.
January 5
The corporation purchased equipment to be used in the business for $200,000 cash.
January 8
The corporation purchased inventory costing $200,000 by paying $120,000 in cash. The remainder was put on credit accounts with suppliers.
January 15
The corporation hired five employees. Each employee will be paid $1,000 at the end of each month.
January 30
The corporation paid $6,000 cash for a one-year insurance policy. The policy period will begin on February 1, Year 1.
What will be the impact of the January 1 event on the company’s balance sheet on that date, along with an increase to cash of $900,000?

Stockholders’ equity will increase by $900,000

Loan payable will increase by $900,000

Investments will increase by $900,000

Retained earnings will increase by $900,000

NO.28 Which user group of financial statements evaluates the ability to repay loans?

Management

Investors

Lenders

Suppliers

NO.29 Which act was implemented as a result of the corporate scandals at companies such as Enron and WorldCom?

Corporate Accountability Act

Securities Exchange Act

Auditing Accountability Act

Sarbanes-Oxley Act

NO.30 In September, an airline using accrual accounting received cash from a round-trip ticket sold to a customer for
$1,500. The ticket allowed the customer to fly from Denver to Hawaii in October and from Hawaii back to Denver in November.
When should the airline recognize revenue?

In September, October, and November

Only in November

In October and November

Only in September

NO.31 A company allocates overhead based on the number of shoes produced.
The company estimates the following costs and shoe production for the upcoming year:
Estimated total overhead = $1,250,000
Estimated number of shoes = 4,000,000
Actual overhead = $1,350,000
Actual number of shoes = 4,100,000
What is the predetermined overhead rate?

$0.313

$0.329

$0.343

$0.375

NO.32 Given the following information:
Pairs of shoes expected to be produced = 1,950,000
Pairs of shoes produced = 2,500,000
Overhead rate = $0.75
What is the amount of applied overhead?

$412,500

$550,000

$1,462,500

$1,875,000

NO.33 Which balance sheet category reflects what a company owns that can be turned into cash or used to generate cash?

Assets

Liabilities

Revenues

Owners’ equity

NO.34 What can be deduced when a company has an asset turnover of 0.95?

The company was able to generate $0.95 in sales for each dollar in assets

The company was able to generate $0.95 in equity for each dollar in assets

The company was able to generate $0.95 in liabilities for each dollar in assets

The company was able to generate $0.95 in profit for each dollar in assets

NO.35 Which information does a balance sheet provide about a company?

Revenues and expenses for a period of time

Cash collections and cash expenditures at a specific point in time

Assets and liabilities for a specific point in time

Cash collections and cash expenditures for a period of time

NO.36 Which financial statement is used to determine a company’s income and expenses for a specific period?

Balance sheet

Statement of retained earnings

Statement of cash flows

Income statement

NO.37 The following list provides partial financial information for a company.
Beginning cash balance = $1,200
Received cash from sales of goods = $16,000
Paid wages and salaries = $4,500
Received cash from non-trading securities = $5,000
Paid cash for plant assets = $6,000
Received cash from loans = $8,000
Paid cash in repayment of loans = $2,000
What is the ending cash balance for this company?

$18,700

$16,500

$20,000

$17,700

NO.38 A company manufactures leather products and has recently switched to the activity-based costing (ABC) method. It needs to determine the cost of its leather wallets. The company is already aware of its DM and DL costs.
What is the first step to calculating the cost of the product?

Calculate G & A

Assign overhead costs

Double check the DM & DL calculations

Identify overhead cost activities

NO.39 The following list provides partial financial information for a company.
Current assets = $36,543
Total assets = $58,719
Current liabilities = $24,824
Total liabilities = $48,561
Stockholders’ equity = $10,158
Sales = $46,997
Net income = $3,761
Market value of equity = $41,316
What is the current ratio for this company?

1.38

0.83

1.47

4.78

NO.40 Which two item subtotals are included in a multi-step income statement?
Choose 2 answers.

Gross profit

Income from operations

Current liabilities

Total assets

NO.41 What are two examples of product costs?
Choose 2 answers.

Selling and administrative expenses

Direct labor