WGU D196 Study Guide (New 2024/ 2025 Update) Principles of Financial and Managerial Accounting- Questions and Verified Answers| 100% Correct| A Grade

WGUID196IStudyIGuideI(NewI2024/I2025I
Update)IPrinciplesIofIFinancialIandI
ManagerialIAccounting-IQuestionsIand
IVerifiedIAnswers|I100%ICorrect|IAIGradeI
QUESTION
IEquationsIforIverticalIandIhorizontalIanalysisIcharts:

Answer:
YearItoIyearIchange:I=(AccountICurrent-AccountIPrevious)/AccountIPrevious
ORI=(YearI2-YearI1)/YearI1.




QUESTION
IPercentageIofISales

Answer:
IncomeIStatementIamount/Sales
Example:I=F4/$F$4




QUESTION
IGrossIProfit

Answer:
Sales-CostIofIGoodsISold




QUESTION
ITaxICalculation

,Answer:
EarningsIbeforeITaxesIXITaxIRate




QUESTION
ICanIyouIdescribeItheIcashIbudgetingIprocessIandIwhyIitIisIimportantItoIanyIorganization?

Answer:
TheIcashIbudgetingIprocessIisIaIscheduleIofIchartingIyourIexpectedIcashIinflowsIandIcashIout
flowsIduringIaIcertainIperiod.IItIisIimportantIforIanIorganizationIbecauseIitIgivesItheIcompany
IaIknowledgeIandIexpectationIofIwhereItheirImoneyIisIgoingIandIhowItoIhandleItheirImoney,I
asIwellIasInoticingItimesIofIcashIshortagesIandIcashIsurpluses.




QUESTION
ICanIyouIidentifyIandIexplainIwhatIcashIreceipts(cashIinflows)Iare?

Answer:
AIcashIreceiptIisItakingIaccountIandIacknowledgingItheIcashItransactionsIbeingIreceivedIbyIth
eIcompany.




QUESTION
IWhatIisIanIAgingISchedule?

Answer:
AnIagingIscheduleIisIanIanalysisIofIpastIcashIflowIpatternsItoIrevealItheIexpectedItimingIofIfu
tureIcashIcollections




QUESTION

,ICanIyouIuseItheIExcelIchartingIabilitiesItoIshowItheIeffectsItoI'manage'IcashIreceiptsIandIcas
hIdisbursements?
StepsItoIcreatingIaICashIflowIChart:


Answer:
1)IClickIonI"Insert"
2)IChooseIaIchart
3)ISelectIaIdataIrangeIinI"ChartIDesign"
4)IInputIdata
5)IEditIhorizontalIaxisIlabels
6)IRemoveItheIlegend,IandIaddIaItitle
7)IAddIdataIlabels,IbyIgoingItoIchartIdesign(1),IaddIchartIelements(2),IaddIdataIlabels(3).




QUESTION
IWhatIexactlyIisIaIbudgetIandIwhyIdoIweIprepareIthese?

Answer:
AIbudgetIisIaIquantitativeIexpressionIofIaIplanIthatIshowsIhowIaIfirmIorIorganizationIwillIacq
uireIandIuseIresources.
WeIprepareIaIbudgetIsoIweIcanIplanIhowIweIspendIorIreceiveIourImoney,IsoIweIdon'tIgoIinto
IdebtIorIgoIoverItheIbudget.




QUESTION
IExplainIwhatIaImasterIbudgetIisIandIwhyIit'sIimportant?

Answer:
AImasterIbudgetIisIaInetworkIofImanyIseparateIschedulesIandIbudgetsIthatItogetherIconstituteI
theIoverallIoperatingIandIfinancingIplanIforItheIupcomingIperiod.IAImasterIbudgetIisIimportan
tIbecauseIitIisIusedItoIcompareItheIbudgetedIperformanceItoItheIactualIperformance.




QUESTION

, I·ICanIyouIdescribeItheImasterIbudgetingIprocessIforIaImanufacturingIfirm?

Answer:
TheImasterIbudgetingIprocessIforIaImanufacturingIfirmIisIbrokenIdownIintoIquarterlyIsalesIba
sedIoffIhowImanyIitemsIwereIsold.




QUESTION
ISalesIBudget

Answer:
AIsalesIbudgetIisIaIscheduleIofIprojectedIsalesIoverItheIbudgetIperiod,IwhichIoftenIincludesIaI
measureIofIrevenueIearnedIandIcashIcollectedIfromIitsIcustomers.




QUESTION
IProductionIBudget

Answer:
AIproductionIbudgetIisIaIscheduleIofIproductionIrequirementsIforItheIbudgetIperiod.




QUESTION
IDirectIMaterialsIBudget

Answer:
AIdirectImaterialsIbudgetIisIaIscheduleIofIdirectImaterialsItoIbeIusedIandIpurchasedIduringIthe
IbudgetIperiod.




QUESTION
IDirectILaborIBudget