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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. A company manufactures and sells widgets. The following information is available:
* Total fixed costs per month are $300,000
* The variable cost per widget is $50
* Each widget sells for $100
How many widgets does the company need to sell each month to break even?

A) 4,500
B) 6,000
C) 2,000
D) 3,000

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

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

3. Which action should a managerial accountant consider taking if confronted by an ethical conflict?

A) Consult with a coworker
B) Confer with any stakeholder in the organization
C) Report directly to the chief executive officer
D) Use an objective advisor confidentially

4. How does management accounting differ from financial accounting?

A) Management accounting presents an unbiased view of a company's economic performance
B) Management accounting is not used to gain a competitive advantage in the marketplace
C) Management accounting is restricted to providing financial rather than nonfinancial data
D) Management accounting is used primarily for internal planning, control, and evaluation

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

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

Solutions: