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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

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

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

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

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

3. What does it mean if a company has a debt ratio of 101.5%?

A) The company has 1.5% more total liabilities than total assets
B) The company has 1.5% more total liabilities than net income
C) The company has 1.5% more current liabilities than current assets
D) The company has 1.5% more total liabilities than gross sales

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

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

5. 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) 0.83
B) 1.47
C) 4.78
D) 1.38

Solutions: