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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

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

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

2. 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) $130,000
B) $40,000
C) $230,000
D) $70,000

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

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

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

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

5. Which internal control is intended to ensure that a company does not mistakenly pay a supplier for an invoice that includes more items than were actually received?

A) The company requires two signatures on each check in order for a payment to be sent
B) The purchasing department authorizes the order of all items before they occur
C) The inventory department counts and inspects items as received and forwards the receiving record to accounts payable
D) The accounts payable department uses prenumbered checks in the payment of supplier invoices

Solutions: