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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which two examples represent financial statement errors?
Choose 2 answers.

A) An accountant unintentionally records amounts as revenue that were prepaid by customers but not yet earned
B) An accounting department miscalculates the payroll tax due at year-end, resulting in an inaccurate liability
C) An outside auditor disagrees with the amount reported as an allowance for uncollectible accounts receivable
D) An accounting employee overpays a supplier and receives a portion of the excess as a kickback

2. A company budgeted the following purchases for raw materials:
January = $10,000
February = $20,000
March = $25,000
April = $22,000
May = $27,000
June = $30,000
July = $24,000
The company has a policy of paying for 40% of purchases in the month of the purchase, 35% in the month following the purchase, and 25% in the second month following the purchase.
What are the budgeted cash disbursements for May based on this information?

A) $27,300
B) $18,500
C) $25,050
D) $24,750

3. Under the Sarbanes-Oxley Act, which requirement must an accounting firm that audits public companies meet?

A) The firm cannot be retained only by the CFO
B) The firm cannot provide several nonaudit services such as internal audit outsourcing to its audit clients
C) The firm cannot audit a company for more than five years
D) The firm cannot use any forms of advertising to obtain new audit clients

4. Which two procedures do external auditors use to gain confidence in the quality of a company's financial reporting processes?
Choose 2 answers.

A) They conduct a customer satisfaction survey
B) They poll the public regarding the company's external image
C) They examine records to support balances and transactions
D) They perform a marketing analysis to determine demand for the company's products or services
E) They obtain confirmations from third parties the company does business with

5. How does management accounting differ from financial accounting?

A) Management accounting presents an unbiased view of a company's economic performance
B) Management accounting is used primarily for internal planning, control, and evaluation
C) Management accounting is not used to gain a competitive advantage in the marketplace
D) Management accounting is restricted to providing financial rather than nonfinancial data

Solutions: