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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. 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) $18,700
B) $16,500
C) $20,000
D) $17,700

2. Who does Sarbanes-Oxley apply to?

A) Publicly traded, wholly-owned subsidiaries of foreign companies doing business in the United States
B) Nonpublic wholly-owned subsidiaries of foreign companies doing business in the United States
C) Nonpublic companies in the United States
D) Publicly traded companies in the United States

3. A company manufactures leather products and has recently switched to the activity-based costing (ABC) method. It needs to determine the cost of its leather wallets. The company is already aware of its DM and DL costs.
What is the first step to calculating the cost of the product?

A) Calculate G & A
B) Assign overhead costs
C) Double check the DM & DL calculations
D) Identify overhead cost activities

4. A company prepared the following contribution margin income statement for the actual sale of 10,000 shoes:
Sales revenue = $600,000
Variable costs = $400,000
Contribution margin = $200,000
Less fixed costs = $150,000
Net income = $50,000
What would be the forecasted net income for the sale of 14,000 shoes based on the actual results above?

A) $130,000
B) $40,000
C) $70,000
D) $230,000

5. Which two costs would be used to calculate inventory overhead?
Choose 2 answers.

A) Factory electricity costs
B) Administrative office electricity costs
C) Production employee benefits
D) Administrative employee benefits

Solutions: