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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

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

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

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

A) An accounting department miscalculates the payroll tax due at year-end, resulting in an inaccurate liability
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 outside auditor disagrees with the amount reported as an allowance for uncollectible accounts receivable

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

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

4. Which two details can management determine through a cost-volume-profit analysis?
Choose 2 answers.

A) The impact that a change in cost would have on a business organization's profit margin in the future
B) The impact of a change in a business organization's number of units sold to reach a certain profit margin in the future
C) The impact of past transactions on a business organization's profit margin
D) The impact of past income tax costs on a business organization's profit margin

5. Which costs are found in a manufacturing company rather than a service-oriented company?

A) Raw materials costs
B) Direct labor costs
C) Selling costs
D) Indirect labor costs

Solutions: