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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

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

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

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

A) Direct costs
B) Variable costs
C) Product costs
D) Indirect costs

3. The following list provides partial financial information for a company.
Beginning cash balance = $1,200
Received cash from sales of goods = $16,000
Paid wages and salaries = $4,500
Received cash from non-trading securities = $5,000
Paid cash for plant assets = $6,000
Received cash from loans = $8,000
Paid cash in repayment of loans = $2,000
What is the ending cash balance for this company?

A) $18,700
B) $20,000
C) $16,500
D) $17,700

4. What purpose do the notes within financial statements serve to the Financial Accounting Standards Board?

A) Disclosing financial statistics
B) Providing a summary of accounting policies
C) Summarizing totals of financial statements
D) Providing supplementary information as needed

5. Which source of cash is the best indicator of a firm's viability as an ongoing concern?

A) Cash from financing activities
B) Cash from production activities
C) Cash from investing activities
D) Cash from operating activities

Solutions: