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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which ratio provides a measure of how well a company turns sales into profits?

A) Return on sales
B) Return on expenses
C) Return on profit
D) Return on costs

2. The following list provides partial financial information for a company.
Current assets = $36,543
Total assets = $58,719
Current liabilities = $24,824
Total liabilities = $48,561
Stockholders' equity = $10,158
Sales = $46,997
Net income = $3,761
Market value of equity = $41,316
What is the current ratio for this company?

A) 1.47
B) 1.38
C) 4.78
D) 0.83

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

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

4. What are the costs associated with two or more business units called?

A) Direct costs
B) Indirect costs
C) Product costs
D) Variable costs

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

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

Solutions: