WGU Accounting-for-Decision-Makers

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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. The following cost-volume-profit graph shows revenues and costs at various levels of production.
How many units should this company sell each month to realize a profit?

A) 100
B) 225
C) 250
D) 275

2. The following list provides partial financial information for a company.
Financial Category | 20X3 | 20X2
Net income | $3,540 | ?
Cash from operations | $4,417 | ?
Cash paid for capital expenditures | $5,613 | ?
Cash paid for acquisitions | $5,964 | ?
Cash paid for interest | $2,782 | ?
Cash paid for income taxes | $2,860 | ?
What is the cash flow to net income ratio for this company in 20X2?

A) 1.35
B) 1.80
C) -0.01
D) 2.45

3. What is the impact on costs as sales volume decreases?

A) Total fixed costs will increase in direct proportion
B) Total fixed costs will decrease in direct proportion
C) Total variable costs will decrease in direct proportion
D) Total variable costs will increase in direct proportion

4. What are two examples of product costs?
Choose 2 answers.

A) Period expenses
B) Raw materials
C) Direct labor
D) Selling and administrative expenses

5. What can be determined when a firm performs an external audit of a company's financial statements?

A) Whether a company's financial statements indicate that the company has to pay income taxes
B) Whether a company's financial statements fairly reflect its financial position
C) Whether a company's financial statements were prepared by a trained bookkeeper
D) Whether a company's financial statements indicate it made a profit

Solutions: