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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Who does Sarbanes-Oxley apply to?

A) Nonpublic companies in the United States
B) Publicly traded, wholly-owned subsidiaries of foreign companies doing business in the United States
C) Nonpublic wholly-owned subsidiaries of foreign companies doing business in the United States
D) Publicly traded companies in the United States

2. Which act was implemented as a result of the corporate scandals at companies such as Enron and WorldCom?

A) Auditing Accountability Act
B) Sarbanes-Oxley Act
C) Corporate Accountability Act
D) Securities Exchange Act

3. A company manufactures and sells widgets. The following information is available:
* Total fixed costs per month are $300,000
* The variable cost per widget is $50
* Each widget sells for $100
How many widgets does the company need to sell each month to break even?

A) 6,000
B) 4,500
C) 3,000
D) 2,000

4. A company collects 20% of the credit sales in the month of sale and the rest is collected equally in the following two months. The company made the following credit sales:
January = $500,000
February = $420,000
March = $545,000
April = $550,000
May = $555,000
June = $567,000
July = $600,000
Which is the correct amount of cash collection in the month of September?

A) $625,000
B) $658,000
C) $624,000
D) $670,000

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

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

Solutions: