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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which current asset on a balance sheet appears first in the traditional category order for U.S.-based companies?

A) Inventory
B) Cash
C) Prepaid expenses
D) Accounts receivable

2. 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

3. Given the following information:
Pairs of shoes expected to be produced = 1,950,000
Pairs of shoes produced = 2,500,000
Overhead rate = $0.75
What is the amount of applied overhead?

A) $1,462,500
B) $412,500
C) $1,875,000
D) $550,000

4. Which events represent financial information recorded in the accounting system of a business?

A) Business events that have already occurred
B) Personal events of each business owner during a year
C) Personal events of each business owner that are likely to occur in the future
D) Business events that are likely to occur in the future

5. What does it mean if a company has a debt ratio of 101.5%?

A) The company has 1.5% more total liabilities than net income
B) The company has 1.5% more total liabilities than gross sales
C) The company has 1.5% more total liabilities than total assets
D) The company has 1.5% more current liabilities than current assets

Solutions: