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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which events represent financial information recorded in the accounting system of a business?

A) Personal events of each business owner that are likely to occur in the future
B) Business events that are likely to occur in the future
C) Personal events of each business owner during a year
D) Business events that have already occurred

2. 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) $70,000
B) $230,000
C) $130,000
D) $40,000

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. Which financial statement is used to determine a company's income and expenses for a specific period?

A) Balance sheet
B) Statement of cash flows
C) Statement of retained earnings
D) Income statement

5. Which overhead cost is associated with batch-level activities?

A) Factory insurance
B) Product engineering wages
C) Property taxes
D) Machine setups

Solutions: