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

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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which formula yields a cash times interest earned ratio of 11?

A) Cash before interest and taxes of $11,000 / cash from operations of $1,000
B) Cash before interest and taxes of $11,000 / cash paid for interest of $1,000
C) Cash before interest and taxes of $11,000 / cash paid for acquisitions of $1,000
D) Cash before interest and taxes of $11,000 / cash paid for income taxes of $1,000

2. 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) $112,500
B) $126,500
C) $265,000
D) $158,000

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 accountant unintentionally records amounts as revenue that were prepaid by customers but not yet earned
C) An outside auditor disagrees with the amount reported as an allowance for uncollectible accounts receivable
D) An accounting department miscalculates the payroll tax due at year-end, resulting in an inaccurate liability

4. What is true regarding the use of International Financial Reporting Standards (IFRS)?

A) IFRS are commonly required to be used in Asia
B) IFRS are seldom used by non-U.S. companies
C) IFRS may be used instead of generally accepted accounting principles (GAAP) by any U.S.-based corporation
D) IFRS are required to be used by the Securities and Exchange Commission (SEC)

5. Which internal control is intended to ensure that a company does not mistakenly pay a supplier for an invoice that includes more items than were actually received?

A) The purchasing department authorizes the order of all items before they occur
B) The company requires two signatures on each check in order for a payment to be sent
C) The inventory department counts and inspects items as received and forwards the receiving record to accounts payable
D) The accounts payable department uses prenumbered checks in the payment of supplier invoices

Solutions: