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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. What is a significant role of the U.S. Securities and Exchange Commission (SEC) in financial reporting?

A) The SEC supports company management and boards of directors in the effective discharge of their responsibilities
B) The SEC ensures that auditors have the resources and information necessary to provide valuable professional services
C) The SEC ensures that financial statement users are provided with reliable information to use in decision- making
D) The SEC provides representation and training to controllers of public companies

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

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

3. A company manufactures leather products and has recently switched to the activity-based costing (ABC) method. It needs to determine the cost of its leather wallets. The company is already aware of its DM and DL costs.
What is the first step to calculating the cost of the product?

A) Double check the DM & DL calculations
B) Assign overhead costs
C) Calculate G & A
D) Identify overhead cost activities

4. The following list provides partial financial information for a company.
Beginning cash balance = $1,200
Received cash from sales of goods = $16,000
Paid wages and salaries = $4,500
Received cash from non-trading securities = $5,000
Paid cash for plant assets = $6,000
Received cash from loans = $8,000
Paid cash in repayment of loans = $2,000
What is the ending cash balance for this company?

A) $20,000
B) $16,500
C) $18,700
D) $17,700

5. A company prepared the following contribution margin income statement for the actual sale of 10,000 shoes:
Sales revenue = $600,000
Variable costs = $400,000
Contribution margin = $200,000
Less fixed costs = $150,000
Net income = $50,000
What would be the forecasted net income for the sale of 14,000 shoes based on the actual results above?

A) $230,000
B) $70,000
C) $130,000
D) $40,000

Solutions: