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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. What does management accounting present?

A) Data to predict inconsistencies in finances to help users within a company make decisions
B) Detailed data regarding a business's overall economic performance to help outside stakeholders make decisions
C) Information regarding the qualifications of managers to help shareholders make decisions
D) Information regarding a business's overall economic performance to help shareholders make decisions

2. What purpose do the notes within financial statements serve to the Financial Accounting Standards Board?

A) Summarizing totals of financial statements
B) Providing a summary of accounting policies
C) Providing supplementary information as needed
D) Disclosing financial statistics

3. 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

4. A manufacturer produces three products A, B, and C.
The company uses the following information to determine activity rates for each pool.
Cost Pool
Costs
Total Activity
Pool 1
$300,000
20,000 hours
Pool 2
$20,000
500 pounds
Pool 3
$10,000
100 moves
Data concerning the three products appear in the following table.
Cost Driver
Product A
Product B
Product C
Number of hours
10,000
7,500
2,500
Number of pounds
150
250
100
Number of moves
20
40
50
What is the total amount of overhead applied to Product B?

A) $265,000
B) $158,000
C) $126,500
D) $112,500

5. In September, an airline using accrual accounting received cash from a round-trip ticket sold to a customer for
$1,500. The ticket allowed the customer to fly from Denver to Hawaii in October and from Hawaii back to Denver in November.
When should the airline recognize revenue?

A) In October and November
B) Only in September
C) In September, October, and November
D) Only in November

Solutions: