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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which two procedures do external auditors use to gain confidence in the quality of a company's financial reporting processes?
Choose 2 answers.

A) They examine records to support balances and transactions
B) They obtain confirmations from third parties the company does business with
C) They conduct a customer satisfaction survey
D) They perform a marketing analysis to determine demand for the company's products or services
E) They poll the public regarding the company's external image

2. What is the impact on costs as sales volume decreases?

A) Total variable costs will decrease in direct proportion
B) Total variable costs will increase in direct proportion
C) Total fixed costs will decrease in direct proportion
D) Total fixed costs will increase in direct proportion

3. Which information does a balance sheet provide about a company?

A) Cash collections and cash expenditures for a period of time
B) Revenues and expenses for a period of time
C) Assets and liabilities for a specific point in time
D) Cash collections and cash expenditures at a specific point in time

4. Which two costs would be used to calculate inventory overhead?
Choose 2 answers.

A) Administrative office electricity costs
B) Production employee benefits
C) Factory electricity costs
D) Administrative employee benefits

5. A company collects 20% of the credit sales in the month of sale and the rest is collected equally in the following two months. The company made the following credit sales:
January = $500,000
February = $420,000
March = $545,000
April = $550,000
May = $555,000
June = $567,000
July = $600,000
Which is the correct amount of cash collection in the month of September?

A) $670,000
B) $625,000
C) $624,000
D) $658,000

Solutions: