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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which two items increase net income?
Choose 2 answers.

A) Gain on sale of assets
B) Income tax expense
C) Cost of sales
D) Interest income

2. What is a cost incurred as part of the production process?

A) Opportunity cost
B) Period cost
C) Sunk cost
D) Raw materials cost

3. 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 financing activities
B) Cash flows from business activities
C) Cash flows from operating activities
D) Cash flows from investing activities

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

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

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

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

Solutions: