WGU D196|PA|PRE -ASSESSMENT| PRINCIPLES OF FINANCIAL AND MANAGERIAL ACCOUNTING (EXCEL FOCUS) QUESTIONS AND ANSWERS

WGU D196|PA|PRE -ASSESSMENT| PRINCIPLES OF FINANCIAL
AND MANAGERIAL ACCOUNTING (EXCEL FOCUS)




Correct

Incorrect




correct 15% decrease)

, =90000-75000/75000 =
90000-1 = 89999 (completely =90000/75000-1 = 1.20-1 = 0.20 or
wrong instead of correct 20% 20% (wrong increase calculation)
increase)
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2 of 34

Term



If you're in Excel cell E5 comparing this year (E5) to last year (D5),
what's the horizontal analysis formula?



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=(E5-D5)/D5 =(B2-A2)/A2




=(C5-B5)/B5 =D7/$D$20


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3 of 34

Term



Practice example: Rent Expense is $30,000, Net Sales is $600,000.
Memorize this calculation.



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, =30000/600000 = 0.05 = 5% of =30000/500000 = 0.06 = 6% of sales
sales


=30000/700000 = 0.0429 = 4.29% of =30000/400000 = 0.075 = 7.5% of
sales sales


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4 of 34

Term



Write horizontal analysis formula for comparing Year 2 (B column) to
Year 1 (A column)



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=(E5-D5)/D5 =(B2-A2)/A2




=Row#/$Row$20 (example:
=(C5-B5)/B5
=B5/$B$20)


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5 of 34

Term



Example: You're in cell C6 analyzing Operating Expenses. Net Sales
is in C15. What's the correct vertical analysis formula?