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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

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

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

2. Which act was implemented as a result of the corporate scandals at companies such as Enron and WorldCom?

A) Corporate Accountability Act
B) Auditing Accountability Act
C) Securities Exchange Act
D) Sarbanes-Oxley Act

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

4. Which information does a balance sheet provide about a company?

A) Assets and liabilities for a specific point in time
B) Revenues and expenses for a period of time
C) Cash collections and cash expenditures at a specific point in time
D) Cash collections and cash expenditures for a period of time

5. Last year, X Corporation had sales of $500,000 and total expenses of $300,000. A manager of the company is entitled to get a sales commission of 10% of net profit.
What amount of sales commission is to be recognized at year-end?

A) $30,000
B) $20,000
C) $10,000
D) $50,000

Solutions: