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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. What purpose do the notes within financial statements serve to the Financial Accounting Standards Board?

A) Disclosing financial statistics
B) Providing supplementary information as needed
C) Summarizing totals of financial statements
D) Providing a summary of accounting policies

2. Which technique describes the practice of incurring debt but fully paying the debt over time?

A) Income smoothing
B) Liability deferral
C) Accounting management
D) Profit control

3. Under the Sarbanes-Oxley Act, which requirement must an accounting firm that audits public companies meet?

A) The firm cannot provide several nonaudit services such as internal audit outsourcing to its audit clients
B) The firm cannot use any forms of advertising to obtain new audit clients
C) The firm cannot be retained only by the CFO
D) The firm cannot audit a company for more than five years

4. Which body regulates a certified public accounting firm's audit practices when the firm is auditing a large, publicly traded company?

A) The Financial Accounting Standards Board (FASB)
B) The Public Company Accounting Oversight Board (PCAOB)
C) The Financial Accounting Standards Advisory Council (FASAC)
D) The Internal Revenue Service (IRS)

5. Which change occurred if the cost of goods sold moved from 76.8% to 72.6%?

A) Net profit percentage decreased by 4.2%
B) Gross profit percentage increased by 4.2%
C) Gross profit percentage decreased by 4.2%
D) Net profit percentage increased by 4.2%

Solutions: