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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. What does it mean if a company has a debt ratio of 101.5%?

A) The company has 1.5% more total liabilities than net income
B) The company has 1.5% more total liabilities than total assets
C) The company has 1.5% more total liabilities than gross sales
D) The company has 1.5% more current liabilities than current assets

2. Which costs are found in a manufacturing company rather than a service-oriented company?

A) Selling costs
B) Raw materials costs
C) Direct labor costs
D) Indirect labor costs

3. Given the following information:
Pairs of shoes expected to be produced = 1,950,000
Pairs of shoes produced = 2,500,000
Overhead rate = $0.75
What is the amount of applied overhead?

A) $1,462,500
B) $550,000
C) $412,500
D) $1,875,000

4. 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

5. Which role do ethical standards have in management accounting?

A) To guide the resolution to possible ethical dilemmas that the managerial accountant may encounter
B) To provide the management accountant with the ability to know whether a person will act ethically or not
C) To provide the management accountant with the ability to work with only companies that follow strict ethical principles
D) To prevent all unethical behavior of anyone the management accountant may work with

Solutions: