WGU C213 Final Exam with Verified Answers Graded A+
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Course
WGU C213
Institution
WGU C213
WGU C213 Final Exam with Verified Answers Graded A+
1. Order of assets
listed on the bal-
ance sheet
2. Difference be-
tween a manu-
facturing compa-
ny and a service
company.
Period Costs
Product Costs
Service Co. Sell-
ing Costs Direct
Labor
Administrative
Costs Service
Overhead
...
WGU C213 Final Exam with Verified Answers Graded A+
1. Order of assets Assets are listed in the order of liquidity. Liquidity is the
listed on the bal- amount of time it would usually take to covert an asset
ance sheet 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 list-
ed 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.
2. Difference be- The only difference is - a manufacturing company has
tween a manu- direct materials (inventory).
facturing compa-
ny and a service
company.
Period Costs
Product Costs
Service Co. Sell-
ing Costs Direct
Labor
Administrative
Costs Service
Overhead
Manufacturing
Co Selling Costs
Direct Labor
Administrative
Costs
Manufacturing
, WGU C213 Final Exam with Verified Answers Graded A+
Overhead
Direct Materials
(inventory
3. Evaluating a his- Calculation for 2016: 110,.10 = 100,000
torical income
statement to pro-
ject a future in-
come statement.
Projected growth
for 2017 = 10% in-
crease over 2016
sales.
Step 1: Convert
the income state-
ment into a com-
mon-sized in-
come statement.
Step 2: Multi-
ply 2016 sales
by 1.10 (10%
growth) to get the
forecasted 2017
sales. Then mul-
tiply the project-
ed 2017 sales by
the percentages
from step 1.
Now, what would
you do if you
were given the
2017 sales fig-
ure and you need
to calculate the
2016 sales fig-
ure based off the
10% growth for
2017?
, WGU C213 Final Exam with Verified Answers Graded A+
4. Role of the U. Regulates the U.S. Stock exchanges.
S. Securities and
Exchange Com- Seeks to create a fair information environment in which
mission (SEC) in investors can buy and sell stocks.
financial report-
ing. 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 plan-
ning 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 stan-
dards. 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.
5. Compare and ABC is a more accurate product costing system than
Contrast Tradi- traditional product costing systems.
tional Costing
to Activity-Based ABC requires more time and expense to administer than
Costing (ABC). do traditional costing systems.
Companies with diverse products involving substantially
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