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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. A company has projected the following sales for the spring quarter of a year:
April = $300,000
May = $325,000
June = $375,000
Cash is used to pay for 65% of all sales. The remainder is on credit.
The pattern for credit receivables collections is as follows:
* Month of sale = 60%
* Month after sale = 30%
* Second month after sale = 10%
What are the projected cash sales for all three months of the spring quarter?

A) $650,000
B) $105,000
C) $350,000
D) $195,000

2. Which organization establishes rules U.S. companies use to record and report accounting transactions?

A) Financial Accounting Standards Board
B) Internal Revenue Service
C) Securities and Exchange Commission
D) Accounting Principles Board

3. Which overhead cost is associated with batch-level activities?

A) Factory insurance
B) Product engineering wages
C) Machine setups
D) Property taxes

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

5. What does it mean if a company has a debt ratio of 101.5%?

A) The company has 1.5% more total liabilities than gross sales
B) The company has 1.5% more total liabilities than net income
C) The company has 1.5% more total liabilities than total assets
D) The company has 1.5% more current liabilities than current assets

Solutions: