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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

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

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

2. The following list provides partial financial information for a company.
Current assets = $36,543
Total assets = $58,719
Current liabilities = $24,824
Total liabilities = $48,561
Stockholders' equity = $10,158
Sales = $46,997
Net income = $3,761
Market value of equity = $41,316
What is the current ratio for this company?

A) 4.78
B) 1.47
C) 1.38
D) 0.83

3. Which source of cash is the best indicator of a firm's viability as an ongoing concern?

A) Cash from operating activities
B) Cash from production activities
C) Cash from financing activities
D) Cash from investing activities

4. 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) $130,000
B) $40,000
C) $70,000
D) $230,000

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

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

Solutions: