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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. The following list provides partial financial information for a company.
Beginning cash balance = $1,200
Received cash from sales of goods = $16,000
Paid wages and salaries = $4,500
Received cash from non-trading securities = $5,000
Paid cash for plant assets = $6,000
Received cash from loans = $8,000
Paid cash in repayment of loans = $2,000
What is the ending cash balance for this company?

A) $17,700
B) $18,700
C) $16,500
D) $20,000

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

3. The following cost-volume-profit graph shows revenues and costs at various levels of production.
How many units should this company sell each month to realize a profit?

A) 250
B) 275
C) 225
D) 100

4. 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

5. What does management accounting present?

A) Detailed data regarding a business's overall economic performance to help outside stakeholders make decisions
B) Data to predict inconsistencies in finances to help users within a company make decisions
C) Information regarding the qualifications of managers to help shareholders make decisions
D) Information regarding a business's overall economic performance to help shareholders make decisions

Solutions: