1
WGU C213 FINAL EXAM ACTUAL QUESTIONS AND
CORRECT ANSWERS ALREADY GRADED A+
GUARANTEED SUCCESS
Operating Activities:
All categories that are on the income statement, and all current assets and
liabilities. i.e. sales (cash received from customers); cost of goods sold (cash paid
for inventory); operating expenses (cash paid for rent);
Analyze a statement of cash flows to identify operating, investing, and financing
activities.
Investing Activities:
Balance sheet accounts: Long-term assets. i.e. property, plant, and equipment;
investments i.e. cash paid for equipment, cash paid for investments (stock, loans)
Analyze a statement of cash flows to identify operating, investing, and financing
activities.
Financing Activities:
Balance sheet accounts i.e. Long-term liabilities and equity accounts i.e. mortgage
payable; common stock and additional-paid-in capital (cash received from
stockholders); retained earnings (cash paid for dividends)
Explain Accrual Accounting
Revenue recognition:
, 2
In order for revenue to be recognized in an accrual system, two criterial must be
met:
The promised work must be done before the revenue is recognized.
Cash collection must be reasonable assured before revenue is recognized.
Difference between a manufacturing company and a service company.
Period Costs Product Costs
Service Co. Selling Costs Direct Labor
Administrative Costs Service Overhead
Manufacturing Co Selling Costs Direct Labor
Administrative Costs Manufacturing Overhead
Direct Materials (inventory
The only difference is - a manufacturing company has direct materials (inventory).
Evaluating a historical income statement to project a future income statement.
, 3
Projected growth for 2017 = 10% increase over 2016 sales.
Step 1: Convert the income statement into a common-sized income statement.
Step 2: Multiply 2016 sales by 1.10 (10% growth) to get the forecasted 2017 sales.
Then multiply the projected 2017 sales by the percentages from step 1.
Now, what would you do if you were given the 2017 sales figure and you need to
calculate the 2016 sales figure based off the 10% growth for 2017?
Calculation for 2016: 110,.10 = 100,000
Role of the U. S. Securities and Exchange Commission (SEC) in financial
reporting.
Regulates the U.S. Stock exchanges.
Seeks to create a fair information environment in which investors can buy and sell
stocks.
Congress created the first securities act in 1933 and the second securities act in
1934 in response to the stock market crash of 1929.
The Securities Act of 1933 requires most companies planning to issue new debt or
stock securities to the public to submit a registration statement to the public for
approval.
WGU C213 FINAL EXAM ACTUAL QUESTIONS AND
CORRECT ANSWERS ALREADY GRADED A+
GUARANTEED SUCCESS
Operating Activities:
All categories that are on the income statement, and all current assets and
liabilities. i.e. sales (cash received from customers); cost of goods sold (cash paid
for inventory); operating expenses (cash paid for rent);
Analyze a statement of cash flows to identify operating, investing, and financing
activities.
Investing Activities:
Balance sheet accounts: Long-term assets. i.e. property, plant, and equipment;
investments i.e. cash paid for equipment, cash paid for investments (stock, loans)
Analyze a statement of cash flows to identify operating, investing, and financing
activities.
Financing Activities:
Balance sheet accounts i.e. Long-term liabilities and equity accounts i.e. mortgage
payable; common stock and additional-paid-in capital (cash received from
stockholders); retained earnings (cash paid for dividends)
Explain Accrual Accounting
Revenue recognition:
, 2
In order for revenue to be recognized in an accrual system, two criterial must be
met:
The promised work must be done before the revenue is recognized.
Cash collection must be reasonable assured before revenue is recognized.
Difference between a manufacturing company and a service company.
Period Costs Product Costs
Service Co. Selling Costs Direct Labor
Administrative Costs Service Overhead
Manufacturing Co Selling Costs Direct Labor
Administrative Costs Manufacturing Overhead
Direct Materials (inventory
The only difference is - a manufacturing company has direct materials (inventory).
Evaluating a historical income statement to project a future income statement.
, 3
Projected growth for 2017 = 10% increase over 2016 sales.
Step 1: Convert the income statement into a common-sized income statement.
Step 2: Multiply 2016 sales by 1.10 (10% growth) to get the forecasted 2017 sales.
Then multiply the projected 2017 sales by the percentages from step 1.
Now, what would you do if you were given the 2017 sales figure and you need to
calculate the 2016 sales figure based off the 10% growth for 2017?
Calculation for 2016: 110,.10 = 100,000
Role of the U. S. Securities and Exchange Commission (SEC) in financial
reporting.
Regulates the U.S. Stock exchanges.
Seeks to create a fair information environment in which investors can buy and sell
stocks.
Congress created the first securities act in 1933 and the second securities act in
1934 in response to the stock market crash of 1929.
The Securities Act of 1933 requires most companies planning to issue new debt or
stock securities to the public to submit a registration statement to the public for
approval.
