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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which costs are found in a manufacturing company rather than a service-oriented company?

A) Indirect labor costs
B) Selling costs
C) Direct labor costs
D) Raw materials costs

2. Which two items on an income statement result in decreased net income if they are increased?
Choose 2 answers.

A) Interest expense
B) Revenues
C) Gains
D) Cost of goods sold

3. Which two items increase net income?
Choose 2 answers.

A) Gain on sale of assets
B) Interest income
C) Cost of sales
D) Income tax expense

4. Which change occurred if the cost of goods sold moved from 76.8% to 72.6%?

A) Gross profit percentage increased by 4.2%
B) Net profit percentage decreased by 4.2%
C) Net profit percentage increased by 4.2%
D) Gross profit percentage decreased by 4.2%

5. What can be determined when a firm performs an external audit of a company's financial statements?

A) Whether a company's financial statements were prepared by a trained bookkeeper
B) Whether a company's financial statements fairly reflect its financial position
C) Whether a company's financial statements indicate it made a profit
D) Whether a company's financial statements indicate that the company has to pay income taxes

Solutions: