WGU Accounting-for-Decision-Makers Dumps - Pass WGU Accounting for Decision Makers C213 VAC2 Exam in 2026

The correct answer is C. $25,050. To calculate May cash disbursements, include payments from three months:

25% of March purchases

35% of April purchases

40% of May purchases

Now calculate each part:

25% of March ($25,000) = $6,250

35% of April ($22,000) = $7,700

40% of May ($27,000) = $10,800

Add them together:

$6,250 + $7,700 + $10,800 = $24,750

That math points to Option B, not Option C.

So the correct accounting answer based on the numbers provided is:

The likely issue is that one of the answer choices in the source has a typo or the pasted numbers contain a small error. Under standard budgeting logic, May cash disbursements must include the unpaid portions of March and April plus the current-month payment on May purchases. Using the exact data shown, the total is $24,750. Therefore, the correct answer from the calculation is Option B, even though your list may contain a keyed inconsistency.

Accounting systems record business events that have already occurred, not events that may happen in the future and not the personal activities of owners. This is why Option B is correct. In financial accounting, recorded information must be based on identifiable, measurable, and supportable transactions or events, such as sales made, expenses incurred, assets purchased, liabilities created, or cash received and paid. Accounting information is primarily historical in nature, which improves reliability and allows users to evaluate what actually happened in the business.

Option A is incorrect because future business events are forecasts or estimates, not recorded transactions unless a present accounting event already exists, such as an accrued expense. Options C and D are also incorrect because personal events of the owners are not part of the business accounting records unless they directly affect the business entity, for example, owner investment or owner withdrawals. Under the business entity concept, the business is accounted for separately from its owners. Therefore, only completed business transactions and relevant economic events belonging to the business are recorded in the accounting system.

The correct answer is A. Cash from operating activities. Cash generated from operating activities is the best indicator of whether a company can continue as a going concern because it reflects cash produced by the firm's core day-to-day business operations. OpenStax explains that the operating section shows cash flows generated and used by normal business activities, while investing and financing sections relate to asset purchases/sales and raising or repaying capital. OpenStax also notes that operating cash flow helps indicate the feasibility of continuing and advancing company plans.

Option B is incorrect because financing cash flows can come from borrowing or issuing stock, which may temporarily provide cash without proving the business itself is healthy. Option C is incorrect because investing cash flows often relate to buying or selling long-term assets and do not directly show sustainable operating strength. Option D is not one of the formal statement of cash flows categories under U.S. GAAP. For evaluating long-term viability, analysts and auditors place the greatest weight on the firm's ability to generate cash internally from operations. Therefore, Cash from operating activities is the best answer.

The correct answer is C. Total variable costs will decrease in direct proportion. Variable costs change in total as activity or sales volume changes. When sales volume decreases, total variable costs also decrease proportionally because fewer units are produced or sold. Multiple accounting references explain that total variable cost rises and falls with the level of activity, while the variable cost per unit remains constant within the relevant range.

Option A is the opposite of what happens when volume falls. Options B and D are incorrect because total fixed costs generally remain unchanged within the relevant range regardless of short-term changes in sales volume. OpenStax notes that fixed costs are present regardless of production or sales levels, while variable costs occur only as items or services are produced and sold.

This distinction is central to cost behavior analysis and profit planning. As volume declines, total variable costs go down in direct proportion, but total fixed costs do not normally move with sales in the short run. Therefore, the correct answer is Option C.

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.