"Some have erroneously extended the term acronym in meaning to describe all abbreviations made from initial letters, regardless of pronunciation."
http://en.wikipedia.org/wiki/Acronym
EDIT: you can't say WAFG is or isnt an acronym just on sight. WAFG could be an acronym if you PRONOUNCE it like single a word rather than say each letter. so if it's "waffegah" and not W-A-F-G then you're good.