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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which act was implemented as a result of the corporate scandals at companies such as Enron and WorldCom?

A) Sarbanes-Oxley Act
B) Securities Exchange Act
C) Corporate Accountability Act
D) Auditing Accountability Act

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

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

3. Which two items on an income statement result in decreased net income if they are increased?
Choose 2 answers.

A) Cost of goods sold
B) Revenues
C) Interest expense
D) Gains

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

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

5. A company manufactures leather products and has recently switched to the activity-based costing (ABC) method. It needs to determine the cost of its leather wallets. The company is already aware of its DM and DL costs.
What is the first step to calculating the cost of the product?

A) Calculate G & A
B) Assign overhead costs
C) Identify overhead cost activities
D) Double check the DM & DL calculations

Solutions: