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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) Information regarding the qualifications of managers to help shareholders make decisions
C) Information regarding a business's overall economic performance to help shareholders make decisions
D) Detailed data regarding a business's overall economic performance to help outside stakeholders make decisions

2. 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

3. Which role do ethical standards have in management accounting?

A) To prevent all unethical behavior of anyone the management accountant may work with
B) To guide the resolution to possible ethical dilemmas that the managerial accountant may encounter
C) To provide the management accountant with the ability to work with only companies that follow strict ethical principles
D) To provide the management accountant with the ability to know whether a person will act ethically or not

4. A company has projected the following sales for the spring quarter of a year:
April = $300,000
May = $325,000
June = $375,000
Cash is used to pay for 65% of all sales. The remainder is on credit.
The pattern for credit receivables collections is as follows:
* Month of sale = 60%
* Month after sale = 30%
* Second month after sale = 10%
What are the projected cash sales for all three months of the spring quarter?

A) $350,000
B) $650,000
C) $195,000
D) $105,000

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

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

Solutions: