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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:
1. Which financial statement is used to determine a company's income and expenses for a specific period?
A) Balance sheet
B) Statement of retained earnings
C) Income statement
D) Statement of cash flows
2. Which two examples represent financial statement errors?
Choose 2 answers.
A) An accounting department miscalculates the payroll tax due at year-end, resulting in an inaccurate liability
B) An accountant unintentionally records amounts as revenue that were prepaid by customers but not yet earned
C) An outside auditor disagrees with the amount reported as an allowance for uncollectible accounts receivable
D) An accounting employee overpays a supplier and receives a portion of the excess as a kickback
3. Which item is an operating activity under a U.S. generally accepted accounting principles (GAAP) statement of cash flows?
A) Cash payments for purchase of plant assets
B) Cash receipts from the sale of a business segment
C) Cash receipts for the sale of plant assets
D) Cash payments for administration expenses
4. What purpose do the notes within financial statements serve to the Financial Accounting Standards Board?
A) Summarizing totals of financial statements
B) Providing a summary of accounting policies
C) Providing supplementary information as needed
D) Disclosing financial statistics
5. 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) $140 million
B) $80 million
C) $25 million
D) $60 million
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: A,B | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: A |






