WGU Accounting for Decision Makers C213 VAC2 : Accounting-for-Decision-Makers

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WGU Accounting-for-Decision-Makers Exam Syllabus Topics:

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. A company presently uses traditional volume-based costing to allocate overhead to its products.
The following table provides information on two of the company's products:
Product A
Product B
Selling price
$8
$12
Direct material
$2
$3
Direct labor
$1
$2
Applied overhead
$3
$4
Gross margin
$2
$3
Overhead that would be applied to Product A would increase to $8 per unit after identifying cost pools and cost drivers, and the overhead applied to Product B would drop to $2 per unit .
How would this change in the way overhead is allocated affect the selling price of both products?

A) The price of neither product would change
B) The price of Product A would decrease, and the price of Product B would increase
C) The price of Product A would increase, and the price of Product B would decrease
D) The price of Product A would increase, and the price of Product B would increase

2. The following list provides partial financial information for a company.
Current assets = $36,543
Total assets = $58,719
Current liabilities = $24,824
Total liabilities = $48,561
Stockholders' equity = $10,158
Sales = $46,997
Net income = $3,761
Market value of equity = $41,316
What is the current ratio for this company?

A) 1.47
B) 1.38
C) 0.83
D) 4.78

3. Which ratio provides a measure of how well a company turns sales into profits?

A) Return on profit
B) Return on expenses
C) Return on costs
D) Return on sales

4. Which item is an operating activity under a U.S. generally accepted accounting principles (GAAP) statement of cash flows?

A) Cash payments for purchase of plant assets
B) Cash receipts for the sale of plant assets
C) Cash payments for administration expenses
D) Cash receipts from the sale of a business segment

5. Which two examples represent financial statement errors?
Choose 2 answers.

A) An outside auditor disagrees with the amount reported as an allowance for uncollectible accounts receivable
B) An accounting employee overpays a supplier and receives a portion of the excess as a kickback
C) An accountant unintentionally records amounts as revenue that were prepaid by customers but not yet earned
D) An accounting department miscalculates the payroll tax due at year-end, resulting in an inaccurate liability

Solutions: