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Updated: Jun 18, 2026
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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:
1. A company's statement of cash flows includes the following cash transactions.
Sales = $1,250,000
Inventory purchase = -$750,000
Property and equipment purchase = -$280,000
Interest payment on long-term debt = -$25,000
Payment of wages = -$315,000
Payment of rent = -$40,000
Borrowing long-term debt = $200,000
Payment of cash dividends = -$15,000
Repurchase of treasury stock = -$40,000
Total cash flows = -$5,000
What is the total cash flow from investing activities?
A) -$310,000
B) -$280,000
C) -$325,000
D) -$55,000
2. Which ratio provides a measure of how well a company turns sales into profits?
A) Return on profit
B) Return on sales
C) Return on expenses
D) Return on costs
3. Which user group of financial statements evaluates the ability to repay loans?
A) Lenders
B) Management
C) Suppliers
D) Investors
4. A company prepared the following contribution margin income statement for the actual sale of 10,000 shoes:
Sales revenue = $600,000
Variable costs = $400,000
Contribution margin = $200,000
Less fixed costs = $150,000
Net income = $50,000
What would be the forecasted net income for the sale of 14,000 shoes based on the actual results above?
A) $70,000
B) $130,000
C) $40,000
D) $230,000
5. The following cost-volume-profit graph shows revenues and costs at various levels of production.
How many units should this company sell each month to realize a profit?
A) 225
B) 100
C) 250
D) 275
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: D |
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