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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. How does management accounting differ from financial accounting?

A) Management accounting is restricted to providing financial rather than nonfinancial data
B) Management accounting is used primarily for internal planning, control, and evaluation
C) Management accounting presents an unbiased view of a company's economic performance
D) Management accounting is not used to gain a competitive advantage in the marketplace

2. Which balance sheet category reflects what a company owns that can be turned into cash or used to generate cash?

A) Assets
B) Liabilities
C) Owners' equity
D) Revenues

3. Which role do ethical standards have in management accounting?

A) To provide the management accountant with the ability to work with only companies that follow strict ethical principles
B) To guide the resolution to possible ethical dilemmas that the managerial accountant may encounter
C) To prevent all unethical behavior of anyone the management accountant may work with
D) To provide the management accountant with the ability to know whether a person will act ethically or not

4. What does the overall economic performance of a company for a given time period represent?

A) Whether or not a company's sales exceed the costs of the products sold for a given time period
B) Whether or not cash received from sales exceeds cash paid for business expenses for a given time period
C) The overall market value of the company
D) The net income of the company

5. The following list provides partial financial information for a company.
Financial Category | 20X3 | 20X2
Net income | $3,540 | ?
Cash from operations | $4,417 | ?
Cash paid for capital expenditures | $5,613 | ?
Cash paid for acquisitions | $5,964 | ?
Cash paid for interest | $2,782 | ?
Cash paid for income taxes | $2,860 | ?
What is the cash flow to net income ratio for this company in 20X2?

A) 1.35
B) -0.01
C) 2.45
D) 1.80

Solutions: