WGU Accounting for Decision Makers C213 VAC2 : Accounting-for-Decision-Makers

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WGU Accounting-for-Decision-Makers Exam Syllabus Topics:

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. 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) 4.78
C) 1.38
D) 0.83

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

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

3. What can be deduced when a company has an asset turnover of 0.95?

A) The company was able to generate $0.95 in profit for each dollar in assets
B) The company was able to generate $0.95 in equity for each dollar in assets
C) The company was able to generate $0.95 in sales for each dollar in assets
D) The company was able to generate $0.95 in liabilities for each dollar in assets

4. Which financial statement is used to determine a company's income and expenses for a specific period?

A) Income statement
B) Statement of retained earnings
C) Statement of cash flows
D) Balance sheet

5. Which user group of financial statements evaluates the ability to repay loans?

A) Investors
B) Suppliers
C) Management
D) Lenders

Solutions: