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WGU C213 Final Exam with complete solutions lates
version
1. Order of assets listed on the balance sheet: Assets are listed in the order of liquidity. Liquidity
is the amount of time it would usually take to covert an asset into cash. Obviously, cash would be listed first, followed by
marketable investments (a company can quickly convert a short-term investment into cash). Accounts receivable would
be listed next followed by inventory, and long-term investments, fixed assets, and intangibles.
Current assets are listed before long-term assets.
Current liabilities are listed before long-term liabilities, but there is no specific order they are listed in outside of current
and long-term.
There is also no specific order equity accounts are listed on the balance sheet; although, typically you will see
paid-in-capital followed by retained earnings followed by accumulated other comprehensive income, and lastly,
treasury stock.
2. 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 ditterence is - a manufacturing company has direct materials
(inventory).
3. Evaluating a historical income statement to project a future income state-
ment.
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Projected growth for 2017 = 10% increase over 2016 sales.
Step 1: Convert the income statement into a common-sized inco
Step 2: Multiply 2016 sales by 1.10 (10% growth) to get the forec
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
mailto:BRAINSCAPE1
WGU C213 Final Exam with complete solutions lates
version
1. Order of assets listed on the balance sheet: Assets are listed in the order of liquidity. Liquidity
is the amount of time it would usually take to covert an asset into cash. Obviously, cash would be listed first, followed by
marketable investments (a company can quickly convert a short-term investment into cash). Accounts receivable would
be listed next followed by inventory, and long-term investments, fixed assets, and intangibles.
Current assets are listed before long-term assets.
Current liabilities are listed before long-term liabilities, but there is no specific order they are listed in outside of current
and long-term.
There is also no specific order equity accounts are listed on the balance sheet; although, typically you will see
paid-in-capital followed by retained earnings followed by accumulated other comprehensive income, and lastly,
treasury stock.
2. 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 ditterence is - a manufacturing company has direct materials
(inventory).
3. Evaluating a historical income statement to project a future income state-
ment.
mailto:BRAINSCAPE1
, BRAINSCAPE1
Projected growth for 2017 = 10% increase over 2016 sales.
Step 1: Convert the income statement into a common-sized inco
Step 2: Multiply 2016 sales by 1.10 (10% growth) to get the forec
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
mailto:BRAINSCAPE1
