WALL STREET PREP ACTUAL 10 2026
ADVANCED ACCOUNTING AND MODELING
TECHNIQUES STUDY PACKAGE
◉ Form 14A.
Answer: Required filing prior to company's annual shareholder
meetings
◉ S-1 Registration.
Answer: IPO
◉ The only parts of a financial statement that a financial analyst will
need to pay attention to:.
Answer: oPart 1, item 1. Business
oPart 2, item 6. Selected financial data
oPart 2, item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operation
oPart 2, item 8. Financial statements and supplementary data
◉ Revenue.
Answer: Represents proceeds from the sale of goods and services
produced or offered by a company
,◉ Revenue Recognition: Multiple Deliverables.
Answer: For sales of bundled products, companies should assign
individual values to each of the bundled components
◉ Revenue Recognition: Long-term projects.
Answer: 1. Percentage Completion Method
2. Completed Contract Method
◉ Percentage Completion Method.
Answer: revenues are recognized on the basis of the percentage of
total work completed during the accounting period
◉ Completed Contract Method.
Answer: allows revenue recognition only once the entire project has
been completed (rarely used in the US)
◉ COGS.
Answer: Represents company's direct cost of manufacture or
procurement of a good or service for a company to sell to generate
revenue
◉ Examples of COGS.
, Answer: Merchandise inventory
Manufactured goods inventory
•Raw material costs
•Direct labor costs
•Factory overhead
Shipping and delivery costs
Any other costs associated with the generation of revenue
Depreciation of fixed assets
◉ Gross Profit = ________ - ___________.
Answer: Net revenue, COGS
◉ SG&A.
Answer: Operating expenses not covered in COGS
◉ Examples of SG&A.
Answer: -A store lease expense for a retail business
-Salaries and commissions of sales people and cashiers
-Marketing and advertising expenses
-Administrative, IT, and office support staff
-Equipment used for selling (cash register)
-Executive salaries
ADVANCED ACCOUNTING AND MODELING
TECHNIQUES STUDY PACKAGE
◉ Form 14A.
Answer: Required filing prior to company's annual shareholder
meetings
◉ S-1 Registration.
Answer: IPO
◉ The only parts of a financial statement that a financial analyst will
need to pay attention to:.
Answer: oPart 1, item 1. Business
oPart 2, item 6. Selected financial data
oPart 2, item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operation
oPart 2, item 8. Financial statements and supplementary data
◉ Revenue.
Answer: Represents proceeds from the sale of goods and services
produced or offered by a company
,◉ Revenue Recognition: Multiple Deliverables.
Answer: For sales of bundled products, companies should assign
individual values to each of the bundled components
◉ Revenue Recognition: Long-term projects.
Answer: 1. Percentage Completion Method
2. Completed Contract Method
◉ Percentage Completion Method.
Answer: revenues are recognized on the basis of the percentage of
total work completed during the accounting period
◉ Completed Contract Method.
Answer: allows revenue recognition only once the entire project has
been completed (rarely used in the US)
◉ COGS.
Answer: Represents company's direct cost of manufacture or
procurement of a good or service for a company to sell to generate
revenue
◉ Examples of COGS.
, Answer: Merchandise inventory
Manufactured goods inventory
•Raw material costs
•Direct labor costs
•Factory overhead
Shipping and delivery costs
Any other costs associated with the generation of revenue
Depreciation of fixed assets
◉ Gross Profit = ________ - ___________.
Answer: Net revenue, COGS
◉ SG&A.
Answer: Operating expenses not covered in COGS
◉ Examples of SG&A.
Answer: -A store lease expense for a retail business
-Salaries and commissions of sales people and cashiers
-Marketing and advertising expenses
-Administrative, IT, and office support staff
-Equipment used for selling (cash register)
-Executive salaries
