WGU C213 PA & OA Study Guide 2023/2024 With Verified Answers
0 view 0 purchase
Course
CPA - Certified Public Accountant
Institution
CPA - Certified Public Accountant
WGU C213 PA & OA Study Guide 2023/2024 With Verified Answers
1.Accounts Payable. What four financial statements are the main ones? (Answer). The following are the four main financial statements: The income statement displays the company’s receipts and outlays for a given time period, culminating...
WGU C213 PA & OA Study Guide 2023/2024 With Verified
Answers
1.Accounts Payable. What four financial statements are the main ones? (Answer). The
following are the four main financial statements: The income statement displays the
company’s receipts and outlays for a given time period, culminating in net income. The
balance sheet shows the assets, liabilities, and shareholders’ equity of the company at a
certain point in time. The cash inflows and outflows from operating, investing, and financing
activities over a certain time period are highlighted in the Statement of Cash Flows. Retained
earnings from net income and dividends are displayed over time in the Statement of Retained
Earnings.
2. The Equation of Accounting .What is the basic equation in accounting? (Answer): Assets =
Liabilities + Equity is the basic accounting formula. Double-entry accounting is based on this
equation, which also guarantees that the balance sheet stays balanced
3. Accounting: Accrual vs. Cash Basis What distinguishes cash basis accounting from accrual
basis accounting? (Answer): Accrual Basis Accounting: Regardless of when money is
transferred, revenues and costs are recorded as soon as they are generated or incurred.
Accounting on a cash basis means that revenues and costs are only recorded when money is
collected or paid. ---
4. Methods of Depreciation. What are the standard techniques for depreciation?
(Answer).Typical techniques for depreciation consist of: Depreciation calculated on a
straight line distributes an asset’s cost across the course of its useful life. Accelerated
, depreciation method known as the Declining Balance Method depreciates an asset’s
remaining book value by a certain percentage each year. Units of Production Method: The
asset’s actual usage is used to calculate depreciation.
5. Accounting: Managerial versus Financial What distinguishes financial accounting from
managerial accounting, in your opinion?(answer) Managerial Accounting: Provides
managers with information and focuses on internal decision-making. Reports are more
regular, contain greater detail, and may even forecast the future. Financial Accounting:
Generally Accepted Accounting Principles (GAAP) must be adhered to, with a focus on
presenting historical financial information to external stakeholders such as creditors and
investors.
-6. Analysis of Break-Even. How does one determine the break-even point?(Answer).Sales
Price per Unit - Variable Cost per Unit / Fixed Costs = Break-Even Point (in units) This
computation aids in figuring out how many units must be sold in order to pay for all
expenses.
7. Margin of Contribution .How is the contribution margin determined, and what does it
mean?(Answer) The contribution margin is the amount of sales revenue that is left over after
deducting variable expenditures. This money can be utilized to pay fixed costs. Margin of
Contribution = Sales Revenue - Variable Expenses
8. Making a budget. What kinds of budgets are there in management accounting? (Answer)A
few examples of budget types are The master budget is a comprehensive financial plan that
encompasses all other budgets, including cash, production, and sales budgets. Operating
Budget: An estimate of the anticipated income and expenses for the business. Cash Budget:
Projects future cash inflows and outflows to make sure the business has enough cash on hand.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller McDouglasH. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $20.49. You're not tied to anything after your purchase.
