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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

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

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

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

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

3. What does the overall economic performance of a company for a given time period represent?

A) The overall market value of the company
B) The net income of the company
C) Whether or not a company's sales exceed the costs of the products sold for a given time period
D) Whether or not cash received from sales exceeds cash paid for business expenses for a given time period

4. Where should a company report cash payments to acquire or construct long-term fixed assets on a statement of cash flows?

A) Cash flows from business activities
B) Cash flows from operating activities
C) Cash flows from investing activities
D) Cash flows from financing activities

5. What is a cost incurred as part of the production process?

A) Period cost
B) Opportunity cost
C) Sunk cost
D) Raw materials cost

Solutions: