WGU Accounting for Decision Makers C213 VAC2 : Accounting-for-Decision-Makers

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WGU Accounting-for-Decision-Makers Exam Syllabus Topics:

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. What can be deduced when a company has an asset turnover of 0.95?

A) The company was able to generate $0.95 in profit for each dollar in assets
B) The company was able to generate $0.95 in sales for each dollar in assets
C) The company was able to generate $0.95 in liabilities for each dollar in assets
D) The company was able to generate $0.95 in equity for each dollar in assets

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

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

3. Under the Sarbanes-Oxley Act, which requirement must an accounting firm that audits public companies meet?

A) The firm cannot be retained only by the CFO
B) The firm cannot use any forms of advertising to obtain new audit clients
C) The firm cannot audit a company for more than five years
D) The firm cannot provide several nonaudit services such as internal audit outsourcing to its audit clients

4. The following list provides partial financial information for a company.
Beginning cash balance = $1,200
Received cash from sales of goods = $16,000
Paid wages and salaries = $4,500
Received cash from non-trading securities = $5,000
Paid cash for plant assets = $6,000
Received cash from loans = $8,000
Paid cash in repayment of loans = $2,000
What is the ending cash balance for this company?

A) $16,500
B) $18,700
C) $20,000
D) $17,700

5. What does the overall economic performance of a company for a given time period represent?

A) The overall market value of the company
B) The net income of the company
C) Whether or not cash received from sales exceeds cash paid for business expenses for a given time period
D) Whether or not a company's sales exceed the costs of the products sold for a given time period

Solutions: