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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

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

2. 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 operating activities
C) Cash from investing activities
D) Cash from production activities

3. Match each accounting term with its definition.
Answer options may be used more than once or not at all.
Select your answer from the pull-down list.

4. What does the overall economic performance of a company for a given time period represent?

A) Whether or not a company's sales exceed the costs of the products sold for a given time period
B) The overall market value of the company
C) The net income of the company
D) Whether or not cash received from sales exceeds cash paid for business expenses for a given time period

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

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

Solutions: