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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 is a significant role of the U.S. Securities and Exchange Commission (SEC) in financial reporting?
A) The SEC ensures that financial statement users are provided with reliable information to use in decision- making
B) The SEC ensures that auditors have the resources and information necessary to provide valuable professional services
C) The SEC provides representation and training to controllers of public companies
D) The SEC supports company management and boards of directors in the effective discharge of their responsibilities
3. A company plans to purchase inventory for the second half of a year as follows:
July = $100,000
August = $75,000
September = $225,000
October = $125,000
November = $250,000
December = $30,000
The company usually pays 50% of inventory purchases in the month of purchase, 35% in the following month, and 15% in the second month.
What are the forecasted October cash payments based on this information?
A) $78,750
B) $18,750
C) $152,500
D) $62,500
4. Which body regulates a certified public accounting firm's audit practices when the firm is auditing a large, publicly traded company?
A) The Internal Revenue Service (IRS)
B) The Financial Accounting Standards Board (FASB)
C) The Financial Accounting Standards Advisory Council (FASAC)
D) The Public Company Accounting Oversight Board (PCAOB)
5. Last year, X Corporation had sales of $500,000 and total expenses of $300,000. A manager of the company is entitled to get a sales commission of 10% of net profit.
What amount of sales commission is to be recognized at year-end?
A) $20,000
B) $50,000
C) $10,000
D) $30,000
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: A | Question # 3 Answer: C | Question # 4 Answer: D | Question # 5 Answer: A |



