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

The correct answer is C. 1.47. The current ratio measures a company's ability to pay its short-term obligations using its short-term assets. The formula is:

Current ratio = Current assets / Current liabilities

Using the given figures:

Current ratio = 36,543 / 24,824 = 1.4721, which rounds to 1.47

This means the company has $1.47 of current assets for every $1.00 of current liabilities. In financial analysis, this is generally viewed as a sign that the company has a reasonable short-term liquidity position, although the ideal ratio depends on the industry and the quality of the current assets. For example, cash and receivables are usually more liquid than inventory.

Option A is close, but it is not the correct rounded result. Option B is incorrect because it would indicate current liabilities exceed current assets. Option D is far too high based on the numbers given. Since the question asks specifically for the current ratio, the correct calculation and answer are clearly 1.47, making Option C the right choice.

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.

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.

The correct answer is D. The control designed to prevent payment for goods not actually received is the receiving function's preparation of a receiving report, which is then sent to accounts payable and matched against the supplier invoice and purchase order. This is the essence of a three-way match: purchase order, receiving report, and vendor invoice. AccountingTools explains that payables staff should match the supplier invoice to the related purchase order and proof of receipt before authorizing payment.

Option A is helpful for controlling check completeness and sequence, but it does not verify quantities received. Option B adds authorization control over disbursements, but it also does not confirm whether the shipment matched the invoice. Option C helps ensure purchases are approved before ordering, but it still does not prove what was actually delivered. The receiving department's counting and inspection of goods, followed by forwarding the receiving documentation to accounts payable, directly addresses the risk that a supplier invoice includes more items than were received. Therefore, the best internal control is Option D.

The correct answer is C. Under activity-based costing (ABC), overhead is reassigned based on the activities that actually drive cost consumption. ABC often reveals that one product was previously undercosted while another was overcosted under traditional volume-based allocation. OpenStax explains that ABC can shift overhead between products and provide more accurate product-cost information for pricing and decision-making.

For Product A, the new overhead rises from $3 to $8, increasing total unit cost from $6 ($2 + $1 + $3) to $11 ($2 + $1 + $8). Since the current selling price is only $8, Product A is now shown as underpriced, so its selling price would likely need to increase. For Product B, overhead falls from $4 to $2, reducing total unit cost from $9 to $7. With a current selling price of $12, Product B appears more profitable than previously believed, so management could choose to decrease its price if needed for competitive reasons. Therefore, the most logical result is Product A price up, Product B price down, which is Option C.