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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which two items on an income statement result in decreased net income if they are increased?
Choose 2 answers.

A) Gains
B) Revenues
C) Cost of goods sold
D) Interest expense

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

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

3. Last year, X Corporation had sales of $500,000 and total expenses of $300,000. A manager of the company is entitled to get a sales commission of 10% of net profit.
What amount of sales commission is to be recognized at year-end?

A) $30,000
B) $50,000
C) $10,000
D) $20,000

4. Who does Sarbanes-Oxley apply to?

A) Nonpublic wholly-owned subsidiaries of foreign companies doing business in the United States
B) Publicly traded companies in the United States
C) Publicly traded, wholly-owned subsidiaries of foreign companies doing business in the United States
D) Nonpublic companies in the United States

5. What is a significant role of the U.S. Securities and Exchange Commission (SEC) in financial reporting?

A) The SEC ensures that financial statement users are provided with reliable information to use in decision- making
B) The SEC ensures that auditors have the resources and information necessary to provide valuable professional services
C) The SEC provides representation and training to controllers of public companies
D) The SEC supports company management and boards of directors in the effective discharge of their responsibilities

Solutions: