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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which body regulates a certified public accounting firm's audit practices when the firm is auditing a large, publicly traded company?

A) The Internal Revenue Service (IRS)
B) The Financial Accounting Standards Advisory Council (FASAC)
C) The Financial Accounting Standards Board (FASB)
D) The Public Company Accounting Oversight Board (PCAOB)

2. Which user group of financial statements evaluates the ability to repay loans?

A) Management
B) Suppliers
C) Investors
D) Lenders

3. Last year, X Corporation had sales of $500,000 and total expenses of $300,000. A manager of the company is entitled to get a sales commission of 10% of net profit.
What amount of sales commission is to be recognized at year-end?

A) $10,000
B) $30,000
C) $50,000
D) $20,000

4. A company plans to purchase inventory for the second half of a year as follows:
July = $100,000
August = $75,000
September = $225,000
October = $125,000
November = $250,000
December = $30,000
The company usually pays 50% of inventory purchases in the month of purchase, 35% in the following month, and 15% in the second month.
What are the forecasted October cash payments based on this information?

A) $18,750
B) $152,500
C) $62,500
D) $78,750

5. 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) 3,000
C) 6,000
D) 2,000

Solutions: