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

2. Which ratio provides a measure of how well a company turns sales into profits?

A) Return on expenses
B) Return on sales
C) Return on profit
D) Return on costs

3. Which two examples represent financial statement errors?
Choose 2 answers.

A) An accounting employee overpays a supplier and receives a portion of the excess as a kickback
B) An outside auditor disagrees with the amount reported as an allowance for uncollectible accounts receivable
C) An accountant unintentionally records amounts as revenue that were prepaid by customers but not yet earned
D) An accounting department miscalculates the payroll tax due at year-end, resulting in an inaccurate liability

4. A company presently uses traditional volume-based costing to allocate overhead to its products.
The following table provides information on two of the company's products:
Product A
Product B
Selling price
$8
$12
Direct material
$2
$3
Direct labor
$1
$2
Applied overhead
$3
$4
Gross margin
$2
$3
Overhead that would be applied to Product A would increase to $8 per unit after identifying cost pools and cost drivers, and the overhead applied to Product B would drop to $2 per unit .
How would this change in the way overhead is allocated affect the selling price of both products?

A) The price of neither product would change
B) The price of Product A would increase, and the price of Product B would decrease
C) The price of Product A would increase, and the price of Product B would increase
D) The price of Product A would decrease, and the price of Product B would increase

5. How does management accounting differ from financial accounting?

A) Management accounting is not used to gain a competitive advantage in the marketplace
B) Management accounting is used primarily for internal planning, control, and evaluation
C) Management accounting presents an unbiased view of a company's economic performance
D) Management accounting is restricted to providing financial rather than nonfinancial data

Solutions: