WGU C213 Final Exam Questions and Answers - Scored
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.
WGU C213 Final Exam Questions and Answers - Scored
,WGU C213 Final Exam Questions and Answers - Scored
Difference between a manufacturing The only difference is - a manufacturing company has direct
company and a service company. materials (inventory).
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
Evaluating a historical income statement to Calculation for 2016: 110,.10 = 100,000
project a future income statement.
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?
WGU C213 Final Exam Questions and Answers - Scored
, WGU C213 Final Exam Questions and Answers - Scored
Role of the U. S. Securities and Exchange Regulates the U.S. Stock exchanges.
Commission (SEC) in financial reporting.
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.
The Securities Act of 1934 requires a public company to file
detailed periodic reports including audited financial
statements (form 10-K is the annual report; Form 10-Q is the
quarterly report).
Granted the legal authority to establish accounting standards.
Currently the SEC accepts the pronouncements set by FASB.
The SEC can suspend trading of a company's stock, and if
hearings show that the issue failed to comply with the
securities laws, the SEC can de-list the security.
Congress strengthened the SEC through the enactment of
Sarbanes-Oxley (SOX), which was enacted after the massive
frauds that occurred in the late 1990s and the early 2000s.
Compare and Contrast Traditional Costing ABC is a more accurate product costing system than
to Activity-Based Costing (ABC). traditional product costing systems.
ABC requires more time and expense to administer than do
traditional costing systems.
Companies with diverse products involving substantially
different production processes, an ABC system yields better
cost data and better management decisions.
WGU C213 Final Exam Questions and Answers - Scored
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.
WGU C213 Final Exam Questions and Answers - Scored
,WGU C213 Final Exam Questions and Answers - Scored
Difference between a manufacturing The only difference is - a manufacturing company has direct
company and a service company. materials (inventory).
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
Evaluating a historical income statement to Calculation for 2016: 110,.10 = 100,000
project a future income statement.
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?
WGU C213 Final Exam Questions and Answers - Scored
, WGU C213 Final Exam Questions and Answers - Scored
Role of the U. S. Securities and Exchange Regulates the U.S. Stock exchanges.
Commission (SEC) in financial reporting.
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.
The Securities Act of 1934 requires a public company to file
detailed periodic reports including audited financial
statements (form 10-K is the annual report; Form 10-Q is the
quarterly report).
Granted the legal authority to establish accounting standards.
Currently the SEC accepts the pronouncements set by FASB.
The SEC can suspend trading of a company's stock, and if
hearings show that the issue failed to comply with the
securities laws, the SEC can de-list the security.
Congress strengthened the SEC through the enactment of
Sarbanes-Oxley (SOX), which was enacted after the massive
frauds that occurred in the late 1990s and the early 2000s.
Compare and Contrast Traditional Costing ABC is a more accurate product costing system than
to Activity-Based Costing (ABC). traditional product costing systems.
ABC requires more time and expense to administer than do
traditional costing systems.
Companies with diverse products involving substantially
different production processes, an ABC system yields better
cost data and better management decisions.
WGU C213 Final Exam Questions and Answers - Scored
