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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which body regulates a certified public accounting firm's audit practices when the firm is auditing a large, publicly traded company?

A) The Internal Revenue Service (IRS)
B) The Financial Accounting Standards Board (FASB)
C) The Public Company Accounting Oversight Board (PCAOB)
D) The Financial Accounting Standards Advisory Council (FASAC)

2. 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?

A) $25 million
B) $140 million
C) $80 million
D) $60 million

3. Which act was implemented as a result of the corporate scandals at companies such as Enron and WorldCom?

A) Auditing Accountability Act
B) Corporate Accountability Act
C) Sarbanes-Oxley Act
D) Securities Exchange Act

4. What can be deduced when a company has an asset turnover of 0.95?

A) The company was able to generate $0.95 in profit for each dollar in assets
B) The company was able to generate $0.95 in equity for each dollar in assets
C) The company was able to generate $0.95 in sales for each dollar in assets
D) The company was able to generate $0.95 in liabilities for each dollar in assets

5. Which events represent financial information recorded in the accounting system of a business?

A) Personal events of each business owner that are likely to occur in the future
B) Business events that have already occurred
C) Personal events of each business owner during a year
D) Business events that are likely to occur in the future

Solutions: