WGU C213 FINAL EXAM COMPLETE STUDY
GUIDE, EXAM PREP, PRACTICE QUESTIONS
& ANSWERS | COMPREHENSIVE EXAM
REVIEW MATERIALS
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UPDATED QUESTIONS AND ANSWERS
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[EXAM• STUDY GUIDE • SUMMARY • ASSIGNMENT]
A clean, organized resource designed for easy revision and reference.
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,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.
Difference between a manufacturing company and a service The only difference is - a manufacturing company has direct materials (inventory).
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
Evaluating a historical income statement to project a future Calculation for 2016: 110,.10 = 100,000
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?
, Role of the U. S. Securities and Exchange Commission (SEC) Regulates the U.S. Stock exchanges.
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 to Activity-Based ABC is a more accurate product costing system than traditional product costing systems.
Costing (ABC).
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.
GUIDE, EXAM PREP, PRACTICE QUESTIONS
& ANSWERS | COMPREHENSIVE EXAM
REVIEW MATERIALS
| GRADED A+ | GUARANTEED SUCCESS
UPDATED QUESTIONS AND ANSWERS
100% VERIFIED EXAM PREP
[EXAM• STUDY GUIDE • SUMMARY • ASSIGNMENT]
A clean, organized resource designed for easy revision and reference.
QUICK • CLEAR • PROFESSIONAL
,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.
Difference between a manufacturing company and a service The only difference is - a manufacturing company has direct materials (inventory).
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
Evaluating a historical income statement to project a future Calculation for 2016: 110,.10 = 100,000
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?
, Role of the U. S. Securities and Exchange Commission (SEC) Regulates the U.S. Stock exchanges.
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 to Activity-Based ABC is a more accurate product costing system than traditional product costing systems.
Costing (ABC).
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.
