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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which change occurred if the cost of goods sold moved from 76.8% to 72.6%?

A) Gross profit percentage decreased by 4.2%
B) Net profit percentage increased by 4.2%
C) Net profit percentage decreased by 4.2%
D) Gross profit percentage increased by 4.2%

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

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

3. What is an advantage of the indirect method of the cash flow statement?

A) Easy to reconcile between net income and cash flows
B) Easy for a novice to decipher operating cash flow information
C) Easy to highlight the difference between direct and indirect costs
D) Easy to avoid making mistakes because the method reveals indirect costs

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

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

5. Which action should a managerial accountant consider taking if confronted by an ethical conflict?

A) Use an objective advisor confidentially
B) Consult with a coworker
C) Confer with any stakeholder in the organization
D) Report directly to the chief executive officer

Solutions: