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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which two costs would be used to calculate inventory overhead?
Choose 2 answers.

A) Production employee benefits
B) Administrative office electricity costs
C) Factory electricity costs
D) Administrative employee benefits

2. Which user group of financial statements evaluates the ability to repay loans?

A) Lenders
B) Suppliers
C) Investors
D) Management

3. In September, an airline using accrual accounting received cash from a round-trip ticket sold to a customer for
$1,500. The ticket allowed the customer to fly from Denver to Hawaii in October and from Hawaii back to Denver in November.
When should the airline recognize revenue?

A) Only in November
B) In October and November
C) In September, October, and November
D) Only in September

4. Which role do ethical standards have in management accounting?

A) To provide the management accountant with the ability to know whether a person will act ethically or not
B) To guide the resolution to possible ethical dilemmas that the managerial accountant may encounter
C) To provide the management accountant with the ability to work with only companies that follow strict ethical principles
D) To prevent all unethical behavior of anyone the management accountant may work with

5. Which item is an operating activity under a U.S. generally accepted accounting principles (GAAP) statement of cash flows?

A) Cash payments for administration expenses
B) Cash receipts from the sale of a business segment
C) Cash payments for purchase of plant assets
D) Cash receipts for the sale of plant assets

Solutions: