WGU Accounting-for-Decision-Makers : WGU Accounting for Decision Makers C213 VAC2

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WGU Accounting-for-Decision-Makers Exam Syllabus Topics:

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. What can be deduced when a company has an asset turnover of 0.95?

A) The company was able to generate $0.95 in sales for each dollar in assets
B) The company was able to generate $0.95 in liabilities for each dollar in assets
C) The company was able to generate $0.95 in equity for each dollar in assets
D) The company was able to generate $0.95 in profit for each dollar in assets

2. The following list provides partial financial information for a company.
Financial Category | 20X3 | 20X2
Net income | $3,540 | ?
Cash from operations | $4,417 | ?
Cash paid for capital expenditures | $5,613 | ?
Cash paid for acquisitions | $5,964 | ?
Cash paid for interest | $2,782 | ?
Cash paid for income taxes | $2,860 | ?
What is the cash flow to net income ratio for this company in 20X2?

A) 1.80
B) 1.35
C) 2.45
D) -0.01

3. Which item is an operating activity under a U.S. generally accepted accounting principles (GAAP) statement of cash flows?

A) Cash receipts for the sale of plant assets
B) Cash payments for administration expenses
C) Cash payments for purchase of plant assets
D) Cash receipts from the sale of a business segment

4. A manufacturer produces three products A, B, and C.
The company uses the following information to determine activity rates for each pool.
Cost Pool
Costs
Total Activity
Pool 1
$300,000
20,000 hours
Pool 2
$20,000
500 pounds
Pool 3
$10,000
100 moves
Data concerning the three products appear in the following table.
Cost Driver
Product A
Product B
Product C
Number of hours
10,000
7,500
2,500
Number of pounds
150
250
100
Number of moves
20
40
50
What is the total amount of overhead applied to Product B?

A) $265,000
B) $112,500
C) $158,000
D) $126,500

5. A company allocates overhead based on the number of shoes produced.
The company estimates the following costs and shoe production for the upcoming year:
Estimated total overhead = $1,250,000
Estimated number of shoes = 4,000,000
Actual overhead = $1,350,000
Actual number of shoes = 4,100,000
What is the predetermined overhead rate?

A) $0.343
B) $0.375
C) $0.313
D) $0.329

Solutions: