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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Under the Sarbanes-Oxley Act, which requirement must an accounting firm that audits public companies meet?

A) The firm cannot audit a company for more than five years
B) The firm cannot be retained only by the CFO
C) The firm cannot use any forms of advertising to obtain new audit clients
D) The firm cannot provide several nonaudit services such as internal audit outsourcing to its audit clients

2. What is the impact on costs as sales volume decreases?

A) Total fixed costs will increase in direct proportion
B) Total fixed costs will decrease in direct proportion
C) Total variable costs will decrease in direct proportion
D) Total variable costs will increase in direct proportion

3. Which role do ethical standards have in management accounting?

A) To provide the management accountant with the ability to know whether a person will act ethically or not
B) To provide the management accountant with the ability to work with only companies that follow strict ethical principles
C) To prevent all unethical behavior of anyone the management accountant may work with
D) To guide the resolution to possible ethical dilemmas that the managerial accountant may encounter

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

A) The company has 1.5% more total liabilities than gross sales
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 total assets

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

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

Solutions: