WGU C213 Accounting Final Exam (Latest
Update ) Questions & Answers
100% Correct - (Grade A)
Describe how basic cost behavior patterns change as sales volumes change. - correct
answer Fixed costs (FC) are fixed in total, but as sales volume increases, the per unit
FC decreases.
Variable costs (VC) are fixed per unit, but as sales volume increases, total VC
increases.
Stewart Manufacturing produces and sells die cast race cars. VC for each die cast car
is $3 and total FC are $300,000
Per Unit Variable costs remains the same
Total Fixed Costs remains the same
Per Unit Fixed Costs decrease
Analyze a statement of cash flows to identify operating, investing, and financing
activities.
Operating Activities: - correct answer 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);
,WGU C213 Accounting Final Exam (Latest
Update ) Questions & Answers
100% Correct - (Grade A)
Analyze a statement of cash flows to identify operating, investing, and financing
activities.
Investing Activities: - correct answer 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: - correct answer 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: - correct answer 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.
, WGU C213 Accounting Final Exam (Latest
Update ) Questions & Answers
100% Correct - (Grade A)
Explain Accrual Accounting
Expense recognition: - correct answer Expenses are matched to the revenue that is
generated from the expense.
Direct matching, as with cost of goods sold (COGS)
However, some expenses are extremely difficult to match with specific revenue, and
are more aligned to a specific time period.
Systematic allocation, as with deprecation
Moreover, some expenses are difficult to match with specific revenue or specific time
periods.
Immediate recognition, as with advertising
Variable Costs: - correct answer A cost that changes directly with changes in the level
of sales or production.
Examples are direct materials costs and sales commission.
Fixed Costs: - correct answer A cost that doesn't change based on changes in the
level of sales or production. Examples are building rent and executive salaries.
Update ) Questions & Answers
100% Correct - (Grade A)
Describe how basic cost behavior patterns change as sales volumes change. - correct
answer Fixed costs (FC) are fixed in total, but as sales volume increases, the per unit
FC decreases.
Variable costs (VC) are fixed per unit, but as sales volume increases, total VC
increases.
Stewart Manufacturing produces and sells die cast race cars. VC for each die cast car
is $3 and total FC are $300,000
Per Unit Variable costs remains the same
Total Fixed Costs remains the same
Per Unit Fixed Costs decrease
Analyze a statement of cash flows to identify operating, investing, and financing
activities.
Operating Activities: - correct answer 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);
,WGU C213 Accounting Final Exam (Latest
Update ) Questions & Answers
100% Correct - (Grade A)
Analyze a statement of cash flows to identify operating, investing, and financing
activities.
Investing Activities: - correct answer 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: - correct answer 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: - correct answer 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.
, WGU C213 Accounting Final Exam (Latest
Update ) Questions & Answers
100% Correct - (Grade A)
Explain Accrual Accounting
Expense recognition: - correct answer Expenses are matched to the revenue that is
generated from the expense.
Direct matching, as with cost of goods sold (COGS)
However, some expenses are extremely difficult to match with specific revenue, and
are more aligned to a specific time period.
Systematic allocation, as with deprecation
Moreover, some expenses are difficult to match with specific revenue or specific time
periods.
Immediate recognition, as with advertising
Variable Costs: - correct answer A cost that changes directly with changes in the level
of sales or production.
Examples are direct materials costs and sales commission.
Fixed Costs: - correct answer A cost that doesn't change based on changes in the
level of sales or production. Examples are building rent and executive salaries.
