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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. 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 business activities
C) Cash flows from investing activities
D) Cash flows from financing activities

2. Which events represent financial information recorded in the accounting system of a business?

A) Business events that have already occurred
B) Business events that are likely to occur in the future
C) Personal events of each business owner that are likely to occur in the future
D) Personal events of each business owner during a year

3. What is the impact on costs as sales volume decreases?

A) Total fixed costs will decrease in direct proportion
B) Total variable costs will decrease in direct proportion
C) Total fixed costs will increase in direct proportion
D) Total variable costs will increase in direct proportion

4. Which change occurred if the cost of goods sold moved from 76.8% to 72.6%?

A) Net profit percentage decreased by 4.2%
B) Gross profit percentage decreased by 4.2%
C) Net profit percentage increased by 4.2%
D) Gross profit percentage increased by 4.2%

5. Which information does a balance sheet provide about a company?

A) Assets and liabilities for a specific point in time
B) Revenues and expenses for a period of time
C) Cash collections and cash expenditures for a period of time
D) Cash collections and cash expenditures at a specific point in time

Solutions: