WGU Accounting-for-Decision-Makers Exam Questions (Updated 2026) 100% Real Question Answers [Q36-Q56]

Rate this post

WGU Accounting-for-Decision-Makers Exam Questions (Updated 2026) 100% Real Question Answers

Pass WGU Accounting-for-Decision-Makers Exam Quickly With ExamsTorrent

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

Section	Weight	Objectives
Cost Systems	20–25%	– Costing methods 1. Activity-based costing (ABC) 2. Traditional costing – Cost concepts and classification 1. Variable, fixed, mixed costs 2. Direct vs indirect costs
Budgeting and Decision Making	10–15%	– Master budget and components 1. Operating and financial budgets 2. Cash budgeting and forecasting – Relevant information for decision making 1. Capital budgeting basics 2. Make-or-buy, special order, keep-or-drop decisions
Financial Analysis	45–50%	– Financial statement analysis techniques 1. Trend and comparative analysis 2. Ratio analysis: liquidity, profitability, solvency – Purpose and components of financial statements 1. GAAP and reporting standards 2. Balance sheet, income statement, cash flow statement
Controls and Regulations	10–15%	– Internal control systems and principles 1. Compliance with laws and regulations 2. Risk assessment and control activities
Profit Planning	10–15%	– Cost-volume-profit (CVP) analysis 1. Break-even and target profit calculations 2. Sensitivity analysis

Q36. 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?

$25 million

$80 million

$60 million

$140 million

Q37. A company presently uses traditional volume-based costing to allocate overhead to its products.
The following table provides information on two of the company’s products:
Product A
Product B
Selling price
$8
$12
Direct material
$2
$3
Direct labor
$1
$2
Applied overhead
$3
$4
Gross margin
$2
$3
Overhead that would be applied to Product A would increase to $8 per unit after identifying cost pools and cost drivers, and the overhead applied to Product B would drop to $2 per unit .
How would this change in the way overhead is allocated affect the selling price of both products?

The price of Product A would decrease, and the price of Product B would increase

The price of neither product would change

The price of Product A would increase, and the price of Product B would decrease

The price of Product A would increase, and the price of Product B would increase

Q38. Match each accounting term with its definition.
Answer options may be used more than once or not at all.
Select your answer from the pull-down list.

Q39. Under the Sarbanes-Oxley Act, which requirement must an accounting firm that audits public companies meet?

The firm cannot audit a company for more than five years

The firm cannot provide several nonaudit services such as internal audit outsourcing to its audit clients

The firm cannot use any forms of advertising to obtain new audit clients

The firm cannot be retained only by the CFO

Q40. Who does Sarbanes-Oxley apply to?

Publicly traded, wholly-owned subsidiaries of foreign companies doing business in the United States

Nonpublic companies in the United States

Nonpublic wholly-owned subsidiaries of foreign companies doing business in the United States

Publicly traded companies in the United States

Q41. 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

Q42. Which user group of financial statements evaluates the ability to repay loans?

Management

Investors

Lenders

Suppliers

Q43. Which two items increase net income?
Choose 2 answers.

Income tax expense

Cost of sales

Interest income

Gain on sale of assets

Q44. What are the costs associated with two or more business units called?

Variable costs

Indirect costs

Direct costs

Product costs

Q45. 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

Q46. Which technique describes the practice of incurring debt but fully paying the debt over time?

Profit control

Liability deferral

Income smoothing

Accounting management

Q47. 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

Q48. Which internal control is intended to ensure that a company does not mistakenly pay a supplier for an invoice that includes more items than were actually received?

The accounts payable department uses prenumbered checks in the payment of supplier invoices

The company requires two signatures on each check in order for a payment to be sent

The purchasing department authorizes the order of all items before they occur

The inventory department counts and inspects items as received and forwards the receiving record to accounts payable

Q49. What does it mean if a company has a debt ratio of 101.5%?

The company has 1.5% more total liabilities than gross sales

The company has 1.5% more total liabilities than total assets

The company has 1.5% more total liabilities than net income

The company has 1.5% more current liabilities than current assets

Q50. 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?

Increase in assets by $750 and decrease in liability by $750

Decrease in assets by $750 and increase in liability by $750

Increase in assets by $750 and increase in liability by $750

Decrease in assets by $750 and decrease in liability by $750

Q51. A company manufactures and sells widgets. The following information is available:
* Total fixed costs per month are $300,000
* The variable cost per widget is $50
* Each widget sells for $100
How many widgets does the company need to sell each month to break even?

2,000

3,000

4,500

6,000

Q52. 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

Q53. 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?

$18,750

$62,500

$78,750

$152,500

Q54. Which change occurred if the cost of goods sold moved from 76.8% to 72.6%?

Net profit percentage increased by 4.2%

Net profit percentage decreased by 4.2%

Gross profit percentage increased by 4.2%

Gross profit percentage decreased by 4.2%

Q55. A manufacturer produces three products A, B, and C.
The company uses the following information to determine activity rates for each pool.
Cost Pool
Costs
Total Activity
Pool 1
$300,000
20,000 hours
Pool 2
$20,000
500 pounds
Pool 3
$10,000
100 moves
Data concerning the three products appear in the following table.
Cost Driver
Product A
Product B
Product C
Number of hours
10,000
7,500
2,500
Number of pounds
150
250
100
Number of moves
20
40
50
What is the total amount of overhead applied to Product B?

$112,500

$126,500

$158,000

$265,000

Q56. 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