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

2. Which overhead cost is associated with batch-level activities?

A) Property taxes
B) Factory insurance
C) Machine setups
D) Product engineering wages

3. 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) $50,000
B) $20,000
C) $30,000
D) $10,000

4. Which two items increase net income?
Choose 2 answers.

A) Interest income
B) Income tax expense
C) Cost of sales
D) Gain on sale of assets

5. What is a significant role of the U.S. Securities and Exchange Commission (SEC) in financial reporting?

A) The SEC supports company management and boards of directors in the effective discharge of their responsibilities
B) The SEC ensures that financial statement users are provided with reliable information to use in decision- making
C) The SEC ensures that auditors have the resources and information necessary to provide valuable professional services
D) The SEC provides representation and training to controllers of public companies

Solutions: