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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which information does a balance sheet provide about a company?

A) Cash collections and cash expenditures at a specific point in time
B) Cash collections and cash expenditures for a period of time
C) Assets and liabilities for a specific point in time
D) Revenues and expenses for a period of time

2. Which technique describes the practice of incurring debt but fully paying the debt over time?

A) Income smoothing
B) Accounting management
C) Liability deferral
D) Profit control

3. Which user group of financial statements evaluates the ability to repay loans?

A) Management
B) Suppliers
C) Lenders
D) Investors

4. A company has three product lines and has historically used the traditional costing system to allocate overhead costs to each product line. Due to significant differences in the production processes for the three product lines, the company implemented an activity-based costing study and identified the activity-based cost for each product, as shown in the following table.
Product A
Product B
Product C
Traditional cost per unit
$558
$1,375
$1,211
Activity-based cost per unit
$675
$1,585
$1,350
Selling price per unit
$650
$1,450
$1,300
What do these data points reveal about the selling price of this company's products?

A) No change should be made to the selling price
B) The selling price for only Products A and C should increase
C) The selling price should increase for all three products
D) The selling price for only Product B should increase

5. Under the Sarbanes-Oxley Act, which requirement must an accounting firm that audits public companies meet?

A) The firm cannot audit a company for more than five years
B) The firm cannot be retained only by the CFO
C) The firm cannot use any forms of advertising to obtain new audit clients
D) The firm cannot provide several nonaudit services such as internal audit outsourcing to its audit clients

Solutions: