WGU Accounting for Decision Makers C213 VAC2 (Accounting-for-Decision-Makers) Free Practice Test

Question 1

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. In October and November

C. Only in September

D. Only in November

Correct Answer: B

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Question 2

What can be deduced when a company has an asset turnover of 0.95?

A. The company was able to generate $0.95 in sales for each dollar in assets

B. The company was able to generate $0.95 in profit for each dollar in assets

C. The company was able to generate $0.95 in equity for each dollar in assets

D. The company was able to generate $0.95 in liabilities for each dollar in assets

Correct Answer: A

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Question 3

What would be the appropriate cost driver to allocate overhead for a call center?

A. Total material cost

B. Number of labor hours

C. Number of customer contacts

D. Total sales dollars

Correct Answer: C

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Question 4

What is the impact on costs as sales volume decreases?

A. Total variable costs will increase in direct proportion

B. Total fixed costs will decrease in direct proportion

C. Total variable costs will decrease in direct proportion

D. Total fixed costs will increase in direct proportion

Correct Answer: C

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Question 5

What are the costs associated with two or more business units called?

A. Indirect costs

B. Direct costs

C. Variable costs

D. Product costs

Correct Answer: A

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Question 6

What are two examples of product costs?
Choose 2 answers.

A. Direct labor

B. Raw materials

C. Selling and administrative expenses

D. Period expenses

Correct Answer: A,B

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Question 7

Which action should a managerial accountant consider taking if confronted by an ethical conflict?

A. Confer with any stakeholder in the organization

B. Consult with a coworker

C. Report directly to the chief executive officer

D. Use an objective advisor confidentially

Correct Answer: D

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Question 8

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. 1.35

B. -0.01

C. 1.80

D. 2.45

Correct Answer: A

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WGU Accounting for Decision Makers C213 VAC2 (Accounting-for-Decision-Makers) Free Practice Test