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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. The following list provides partial financial information for a company.
Financial Category | 20X3 | 20X2
Net income | $3,540 | ?
Cash from operations | $4,417 | ?
Cash paid for capital expenditures | $5,613 | ?
Cash paid for acquisitions | $5,964 | ?
Cash paid for interest | $2,782 | ?
Cash paid for income taxes | $2,860 | ?
What is the cash flow to net income ratio for this company in 20X2?

A) 2.45
B) 1.35
C) -0.01
D) 1.80

2. Which organization establishes rules U.S. companies use to record and report accounting transactions?

A) Securities and Exchange Commission
B) Internal Revenue Service
C) Financial Accounting Standards Board
D) Accounting Principles Board

3. Which financial statement is used to determine a company's income and expenses for a specific period?

A) Statement of cash flows
B) Income statement
C) Statement of retained earnings
D) Balance sheet

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

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

5. A company budgeted the following purchases for raw materials:
January = $10,000
February = $20,000
March = $25,000
April = $22,000
May = $27,000
June = $30,000
July = $24,000
The company has a policy of paying for 40% of purchases in the month of the purchase, 35% in the month following the purchase, and 25% in the second month following the purchase.
What are the budgeted cash disbursements for May based on this information?

A) $25,050
B) $18,500
C) $24,750
D) $27,300

Solutions: