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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. In September, an airline using accrual accounting received cash from a round-trip ticket sold to a customer for
$1,500. The ticket allowed the customer to fly from Denver to Hawaii in October and from Hawaii back to Denver in November.
When should the airline recognize revenue?

A) In September, October, and November
B) In October and November
C) Only in September
D) Only in November

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

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

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

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

4. A corporation has liabilities and owners' equity of $100 million and $40 million respectively. What is the amount of the asset balance in this case?

A) $25 million
B) $80 million
C) $140 million
D) $60 million

5. A manufacturer produces three products A, B, and C.
The company uses the following information to determine activity rates for each pool.
Cost Pool
Costs
Total Activity
Pool 1
$300,000
20,000 hours
Pool 2
$20,000
500 pounds
Pool 3
$10,000
100 moves
Data concerning the three products appear in the following table.
Cost Driver
Product A
Product B
Product C
Number of hours
10,000
7,500
2,500
Number of pounds
150
250
100
Number of moves
20
40
50
What is the total amount of overhead applied to Product B?

A) $112,500
B) $158,000
C) $126,500
D) $265,000

Solutions: