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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. What is true regarding the use of International Financial Reporting Standards (IFRS)?

A) IFRS are required to be used by the Securities and Exchange Commission (SEC)
B) IFRS are seldom used by non-U.S. companies
C) IFRS are commonly required to be used in Asia
D) IFRS may be used instead of generally accepted accounting principles (GAAP) by any U.S.-based corporation

3. What are the costs associated with two or more business units called?

A) Variable costs
B) Product costs
C) Direct costs
D) Indirect costs

4. A company plans to purchase inventory for the second half of a year as follows:
July = $100,000
August = $75,000
September = $225,000
October = $125,000
November = $250,000
December = $30,000
The company usually pays 50% of inventory purchases in the month of purchase, 35% in the following month, and 15% in the second month.
What are the forecasted October cash payments based on this information?

A) $152,500
B) $18,750
C) $62,500
D) $78,750

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

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

Solutions: