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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which costs are found in a manufacturing company rather than a service-oriented company?

A) Direct labor costs
B) Indirect labor costs
C) Raw materials costs
D) Selling costs

2. A manufacturer produces three products A, B, and C.
The company uses the following information to determine activity rates for each pool.
Cost Pool
Costs
Total Activity
Pool 1
$300,000
20,000 hours
Pool 2
$20,000
500 pounds
Pool 3
$10,000
100 moves
Data concerning the three products appear in the following table.
Cost Driver
Product A
Product B
Product C
Number of hours
10,000
7,500
2,500
Number of pounds
150
250
100
Number of moves
20
40
50
What is the total amount of overhead applied to Product B?

A) $265,000
B) $112,500
C) $158,000
D) $126,500

3. A corporation has liabilities and owners' equity of $100 million and $40 million respectively. What is the amount of the asset balance in this case?

A) $80 million
B) $25 million
C) $60 million
D) $140 million

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

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

5. 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) Only in September
D) In September, October, and November

Solutions: