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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Where should a company report cash payments to acquire or construct long-term fixed assets on a statement of cash flows?

A) Cash flows from operating activities
B) Cash flows from business activities
C) Cash flows from financing activities
D) Cash flows from investing activities

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

3. A company budgeted the following purchases for raw materials:
January = $10,000
February = $20,000
March = $25,000
April = $22,000
May = $27,000
June = $30,000
July = $24,000
The company has a policy of paying for 40% of purchases in the month of the purchase, 35% in the month following the purchase, and 25% in the second month following the purchase.
What are the budgeted cash disbursements for May based on this information?

A) $18,500
B) $25,050
C) $24,750
D) $27,300

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) 225
B) 100
C) 250
D) 275

5. 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) $50,000
C) $20,000
D) $10,000

Solutions: