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

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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. 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) $126,500
B) $112,500
C) $158,000
D) $265,000

2. A company's statement of cash flows includes the following cash transactions.
Sales = $1,250,000
Inventory purchase = -$750,000
Property and equipment purchase = -$280,000
Interest payment on long-term debt = -$25,000
Payment of wages = -$315,000
Payment of rent = -$40,000
Borrowing long-term debt = $200,000
Payment of cash dividends = -$15,000
Repurchase of treasury stock = -$40,000
Total cash flows = -$5,000
What is the total cash flow from investing activities?

A) -$280,000
B) -$55,000
C) -$325,000
D) -$310,000

3. Which two details can management determine through a cost-volume-profit analysis?
Choose 2 answers.

A) The impact of past transactions on a business organization's profit margin
B) The impact of a change in a business organization's number of units sold to reach a certain profit margin in the future
C) The impact that a change in cost would have on a business organization's profit margin in the future
D) The impact of past income tax costs on a business organization's profit margin

4. Which organization establishes rules U.S. companies use to record and report accounting transactions?

A) Securities and Exchange Commission
B) Financial Accounting Standards Board
C) Accounting Principles Board
D) Internal Revenue Service

5. Which financial statement is used to determine a company's income and expenses for a specific period?

A) Statement of retained earnings
B) Income statement
C) Statement of cash flows
D) Balance sheet

Solutions: