WGU Accounting-for-Decision-Makers

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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Match each accounting term with its definition.
Answer options may be used more than once or not at all.
Select your answer from the pull-down list.

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

3. Which two examples represent financial statement errors?
Choose 2 answers.

A) An accountant unintentionally records amounts as revenue that were prepaid by customers but not yet earned
B) An accounting department miscalculates the payroll tax due at year-end, resulting in an inaccurate liability
C) An outside auditor disagrees with the amount reported as an allowance for uncollectible accounts receivable
D) An accounting employee overpays a supplier and receives a portion of the excess as a kickback

4. A company collects 20% of the credit sales in the month of sale and the rest is collected equally in the following two months. The company made the following credit sales:
January = $500,000
February = $420,000
March = $545,000
April = $550,000
May = $555,000
June = $567,000
July = $600,000
Which is the correct amount of cash collection in the month of September?

A) $658,000
B) $670,000
C) $624,000
D) $625,000

5. 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 avoid making mistakes because the method reveals indirect costs
D) Easy to highlight the difference between direct and indirect costs

Solutions: