1|Page
CIC AGENCY MANAGEMENT FINAL EXAM LATEST 2026-2027
ACTUAL EXAM WITH COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS (100% VERIFIED ANSWERS) |ALREADY
GRADED A+| ||PROFESSOR VERIFIED|| ||BRANDNEW!!!||
What are examples of compensation expenses - ANSWER-1.
Executive (Owner) compensation
2. Sales salaries and commissions
3. Staff salaries
4. Employee benefits
5. Payroll taxes
6. Pension and profit sharing
What are examples of "selling expenses" - ANSWER-1. Travel
and entertainment
2. Advertising and promotion
3. Automobile
Administration expenses are indications of a agency's ______ -
ANSWER-management, cost control, and effectiveness
,2|Page
What are examples of administrative expenses - ANSWER-- rent,
utilities, leases, and postage
- accounting, legal, and other professional services
- automation and data processing
- education, licenses, memberships, and professional fees
- marketing / advertising
- insurance
What 3 steps does managing expenses require - ANSWER-1.
Construct a situational analysis
2. Set targets for future short and long term expenses
3. Establish a budget
How do you construct a situational analysis for management
expenses - ANSWER-- review historical financial statements
- analyze trends in expense growth
- classify expenses
- identify areas to reduce costs
,3|Page
What does the balance sheet show - ANSWER-a detailed listing
of what the agency owns (Assets) and owes (Liabilities) and
capital at a specific point in time, giving an indication of the
agencies financial condition
On the balance sheet,
Assets = ____________ + ___________ - ANSWER-Assets =
Liabilities + owners equity
Assets - ANSWER-what an agency owns and what is owed to the
agency by others
Current assets include - ANSWER-- cash
- accounts receivables
- marketable securities
- prepaid expenses
- any other assets that will be converted into cash within the next
12 months
, 4|Page
Long term/ fixed assets include - ANSWER-tangible items, such
as cars, desks, anad office equipment
What are liabilities - ANSWER-what an agency owes to others
What are current liabilities - ANSWER-accounts payable,
accounts current, payroll taxes, and notes payable withing the
next 12 months
What are long-term liabilities - ANSWER-payments due more than
12 months into the future
What does owners (shareholders) equity include - ANSWER-
original start-up capital and earnings retained by the business
Assets - liabilities = owners equity
How is a balance sheet set up - ANSWER-Assets at the top
> current
CIC AGENCY MANAGEMENT FINAL EXAM LATEST 2026-2027
ACTUAL EXAM WITH COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS (100% VERIFIED ANSWERS) |ALREADY
GRADED A+| ||PROFESSOR VERIFIED|| ||BRANDNEW!!!||
What are examples of compensation expenses - ANSWER-1.
Executive (Owner) compensation
2. Sales salaries and commissions
3. Staff salaries
4. Employee benefits
5. Payroll taxes
6. Pension and profit sharing
What are examples of "selling expenses" - ANSWER-1. Travel
and entertainment
2. Advertising and promotion
3. Automobile
Administration expenses are indications of a agency's ______ -
ANSWER-management, cost control, and effectiveness
,2|Page
What are examples of administrative expenses - ANSWER-- rent,
utilities, leases, and postage
- accounting, legal, and other professional services
- automation and data processing
- education, licenses, memberships, and professional fees
- marketing / advertising
- insurance
What 3 steps does managing expenses require - ANSWER-1.
Construct a situational analysis
2. Set targets for future short and long term expenses
3. Establish a budget
How do you construct a situational analysis for management
expenses - ANSWER-- review historical financial statements
- analyze trends in expense growth
- classify expenses
- identify areas to reduce costs
,3|Page
What does the balance sheet show - ANSWER-a detailed listing
of what the agency owns (Assets) and owes (Liabilities) and
capital at a specific point in time, giving an indication of the
agencies financial condition
On the balance sheet,
Assets = ____________ + ___________ - ANSWER-Assets =
Liabilities + owners equity
Assets - ANSWER-what an agency owns and what is owed to the
agency by others
Current assets include - ANSWER-- cash
- accounts receivables
- marketable securities
- prepaid expenses
- any other assets that will be converted into cash within the next
12 months
, 4|Page
Long term/ fixed assets include - ANSWER-tangible items, such
as cars, desks, anad office equipment
What are liabilities - ANSWER-what an agency owes to others
What are current liabilities - ANSWER-accounts payable,
accounts current, payroll taxes, and notes payable withing the
next 12 months
What are long-term liabilities - ANSWER-payments due more than
12 months into the future
What does owners (shareholders) equity include - ANSWER-
original start-up capital and earnings retained by the business
Assets - liabilities = owners equity
How is a balance sheet set up - ANSWER-Assets at the top
> current
