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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. What can be determined when a firm performs an external audit of a company's financial statements?

A) Whether a company's financial statements indicate that the company has to pay income taxes
B) Whether a company's financial statements indicate it made a profit
C) Whether a company's financial statements fairly reflect its financial position
D) Whether a company's financial statements were prepared by a trained bookkeeper

2. 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?

A) $78,750
B) $62,500
C) $18,750
D) $152,500

3. Which role do ethical standards have in management accounting?

A) To provide the management accountant with the ability to work with only companies that follow strict ethical principles
B) To prevent all unethical behavior of anyone the management accountant may work with
C) To guide the resolution to possible ethical dilemmas that the managerial accountant may encounter
D) To provide the management accountant with the ability to know whether a person will act ethically or not

4. Which current asset on a balance sheet appears first in the traditional category order for U.S.-based companies?

A) Prepaid expenses
B) Cash
C) Inventory
D) Accounts receivable

5. How are activity-based costing systems different from traditional costing systems?

A) Activity-based costing systems provide a more precise assignment of overhead costs when multiple products are manufactured than traditional costing systems do
B) Activity-based costing systems are based on a single cost driver and traditional costing systems are based on multiple cost drivers
C) Activity-based costing systems require less time and expense to administer than traditional costing systems
D) Activity-based costing systems are used with homogeneous products while traditional costing systems are used with heterogeneous products

Solutions: