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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. During the year, a company purchased goods on a credit basis for its supplies of $750.
What would be the impact on the accounting equation and financial statement?

A) Decrease in assets by $750 and decrease in liability by $750
B) Decrease in assets by $750 and increase in liability by $750
C) Increase in assets by $750 and decrease in liability by $750
D) Increase in assets by $750 and increase in liability by $750

2. How are activity-based costing systems different from traditional costing systems?

A) Activity-based costing systems require less time and expense to administer than traditional costing systems
B) Activity-based costing systems are used with homogeneous products while traditional costing systems are used with heterogeneous products
C) Activity-based costing systems provide a more precise assignment of overhead costs when multiple products are manufactured than traditional costing systems do
D) Activity-based costing systems are based on a single cost driver and traditional costing systems are based on multiple cost drivers

3. 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) $105,000
D) $195,000

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

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

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

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

Solutions: