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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

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

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

2. Who does Sarbanes-Oxley apply to?

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

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

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

4. A company manufactures leather products and has recently switched to the activity-based costing (ABC) method. It needs to determine the cost of its leather wallets. The company is already aware of its DM and DL costs.
What is the first step to calculating the cost of the product?

A) Identify overhead cost activities
B) Double check the DM & DL calculations
C) Calculate G & A
D) Assign overhead costs

5. Which technique describes the practice of incurring debt but fully paying the debt over time?

A) Liability deferral
B) Profit control
C) Income smoothing
D) Accounting management

Solutions: