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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. 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) $30,000
B) $20,000
C) $10,000
D) $50,000

2. Which technique describes the practice of incurring debt but fully paying the debt over time?

A) Profit control
B) Accounting management
C) Income smoothing
D) Liability deferral

3. How are activity-based costing systems different from traditional costing systems?

A) Activity-based costing systems require less time and expense to administer than traditional costing systems
B) Activity-based costing systems are used with homogeneous products while traditional costing systems are used with heterogeneous products
C) Activity-based costing systems provide a more precise assignment of overhead costs when multiple products are manufactured than traditional costing systems do
D) Activity-based costing systems are based on a single cost driver and traditional costing systems are based on multiple cost drivers

4. The following cost-volume-profit graph shows revenues and costs at various levels of production.
How many units should this company sell each month to realize a profit?

A) 100
B) 250
C) 275
D) 225

5. Which two item subtotals are included in a multi-step income statement?
Choose 2 answers.

A) Gross profit
B) Total assets
C) Current liabilities
D) Income from operations

Solutions: