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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which balance sheet category reflects what a company owns that can be turned into cash or used to generate cash?

A) Liabilities
B) Owners' equity
C) Assets
D) Revenues

2. Where should a company report cash payments to acquire or construct long-term fixed assets on a statement of cash flows?

A) Cash flows from operating activities
B) Cash flows from financing activities
C) Cash flows from investing activities
D) Cash flows from business activities

3. A company allocates overhead based on the number of shoes produced.
The company estimates the following costs and shoe production for the upcoming year:
Estimated total overhead = $1,250,000
Estimated number of shoes = 4,000,000
Actual overhead = $1,350,000
Actual number of shoes = 4,100,000
What is the predetermined overhead rate?

A) $0.375
B) $0.329
C) $0.343
D) $0.313

4. Which internal control is intended to ensure that a company does not mistakenly pay a supplier for an invoice that includes more items than were actually received?

A) The inventory department counts and inspects items as received and forwards the receiving record to accounts payable
B) The company requires two signatures on each check in order for a payment to be sent
C) The accounts payable department uses prenumbered checks in the payment of supplier invoices
D) The purchasing department authorizes the order of all items before they occur

5. Which act was implemented as a result of the corporate scandals at companies such as Enron and WorldCom?

A) Securities Exchange Act
B) Sarbanes-Oxley Act
C) Corporate Accountability Act
D) Auditing Accountability Act

Solutions: