Governors University D 072
WGU C213 Final Exam Questions and Answers Study Guide )
,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 The only difference is - a manufacturing company has direct materials
service company. (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 project a Calculation for 2016: 110,.10 = 100,000
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 Study Guide )
,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 The only difference is - a manufacturing company has direct materials
service company. (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 project a Calculation for 2016: 110,.10 = 100,000
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?
