WGU C213 Final Exam Accounting for Decision Makers Actual Questions and Verified Answers, 100% Guarantee Pass

WGU C213 Final Exam Accounting for Decision
Makers Actual Questions and Verified
Answers, 100% Guarantee Pass



1. Order of assets listed on the balance sheet: Assets are listed in the order of
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liquidity.Liquidity is the amount of time it would usually take to covert an asset
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intocash.Obviously,cashwouldbelistedfirst,followedbymarketableinvestments (a
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company can quickly convert a short-term investment into cash).Accounts receivable
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would be listed next followed by inventory, and long-term investments, fixed assets,
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and intangibles.
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Current assets are listed before long-term assets.
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Currentliabilitiesarelistedbeforelong-termliabilities,butthereisno specificorder they
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are listed in outside of current and long-term.
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There is also no specific order equity accounts are listed on the balance sheet; although,
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typicallyyouwillseepaid-in-capitalfollowedbyretainedearningsfollowed by
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accumulated other comprehensive income, and lastly, treasury stock.
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2. Difference between a manufacturing company and a service company. nh nh nh nh nh nh nh nh




PeriodCosts Product Costs nh nh nh




Service Co. Selling Costs Direct Labor nh nh nh nh nh




Administrative Costs Service Overhead
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,Manufacturing Co Selling Costs Direct Labor Administrative nh nh nh nh nh nh




CostsManufacturingOverhead
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DirectMaterials(inventory:Theonlydifferenceis-amanufacturingcompanyhas direct
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materials (inventory).
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3. Evaluating a historical income statement to project a future income state- nh nh nh nh nh nh nh nh nh nh




ment.
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Projected growth for 2017 = 10% increase over 2016 sales. Step 1:
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Convert the income statement into a common-sized inc ment.
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ome state- nh




Step 2:Multiply 2016 sales by 1.10 (10% growth) to get the forec
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asted 2017
sales.Thenmultiply theprojected2017salesby thepercentagesfromstep1. Now,
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whatwouldyoudoifyouweregiventhe2017salesfigureandyouneed to calculate
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the 2016 sales figure based off the 10% growth for 2017?:Calcu- lation for 2016:
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110,.10 = 100,000
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4. Role of the U.S.Securities and Exchange Commission (SEC) in financial
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reporting.: Regulates the U.S. Stock exchanges.
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Seeksto create a fairinformationenvironmentin whichinvestorscan buyandsell stocks.
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, Congress created the first securities act in 1933 and the second securities act in 1934 in
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response to the stock market crash of 1929.
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The Securities Act of 1933 requires most companies planning to issue new debt or
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stock securities to the public to submit a registration statement to the public for approval.
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The Securities Act of 1934 requires a public company to file detailed periodic reports
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including audited financial statements (form 10-K is the annual report; Form 10-Q is the
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quarterly report).
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Grantedthe legal authority to establish accounting standards.Currently the SEC
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accepts the pronouncements set by FASB.
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The SEC can suspend trading of a company's stock, and if hearings show that the issue
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failed to comply with the securities laws, the SEC can de-list the security.
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Congress strengthened the SEC through the enactment of Sarbanes-Oxley (SOX), h
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which was enacted after the massive frauds that occurred in the late 1990s and the early
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2000s.
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5. Compare and ContrastTraditional Costing to Activity-Based Costing nh nh h
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(ABC).:ABC is a more accurate product costing system than traditional product
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costing systems.
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ABC requires more time and expense to administer than do traditional costing systems.
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Companies with diverse products involving substantially different production nh nh nh nh nh nh nh




processes, an ABC system yields better cost data and better management deci- sions.
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6. Describe how basic cost behavior patterns change as sales volumes change.: nh nh nh nh nh nh nh nh nh nh




Fixedcosts(FC)arefixedintotal,butassalesvolumeincreases,theper unit FC
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decreases.
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Variable costs (VC) are fixed per unit, but as sales volume increases,
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increases.
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Stewart Manufacturing produces and sells die cast race cars.VC for each die cast
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