WGUl D196l Pre-l Assessmentl (Latestl 2025/l 2026l Update)l Principlesl ofl Financiall andl Manageriall Accountingl Review|l Q/Al |l Gradel A|l 100%l Correctl (Verifiedl Answers)
Q:l Whatl arel thel fourl financiall statementsl covered?
Answer:
1.l Thel Balancel Sheet 2.l Thel Incomel Statement 3.l Thel Statementl ofl Retainedl Earnings 4.l Thel Statementl ofl Cashl Flows
Q:l Whatl isl thel purposel ofl thel balancel sheet?
Answer:
Tol reportl thel financiall positionl ofl anl entityl atl anyl pointl inl time.
Q:l Whatl componentsl makel upl thel balancel sheet?
Answer:
Assetsl (resources),l Liabilitiesl (obligations),l andl Ownersl Equity
Q:l Whatl isl thel purposel ofl thel incomel statement?
Answer:
Tol showl thel Revenue,l Expensesl andl Netl Profitl forl thel periodl forl anl entity.l **Alsol providesl infol re:l longl terml profitability. 1 / 3
Q:l Whatl componentsl makel upl thel incomel statement?
Answer:
Revenues,l Expenses,l andl Netl Incomel (loss)
Q:l Whatl isl thel purposel ofl thel Statementl ofl Retainedl Earnings?
Answer:
Displaysl thel changesl inl retainedl earningsl froml onel accountingl periodl tol another.l **Alsol linksl thel balancel sheetl andl thel incomel statementl together.
Q:l Whatl componentsl makel upl thel Statementl ofl Retainedl Earnings
?
Answer:
Previousl retainedl earnings,l plusl netl incomel forl thel year,l minusl dividendsl paidl =l retainedl earningsl now.
Q:l Whatl isl thel purposel ofl thel Statementl ofl Cashl Flows?
Answer:
Showsl thel cashl inflowsl (receipts)l andl cashl outflowsl (payments)l ofl anl entityl duringl al periodl ofl time.
Q:l Howl arel cashl flowl itemsl classifiedl (statementl ofl cashl flows)?
Answer:
Cashl flowl itemsl arel placedl intol onel ofl threel categories 1.l Operating Sellingl goods/services Payingl wages/utilities/taxes 2.l Investing 2 / 3
Sellingl Buildings/Land Purchasingl Buildings/Land 3.l Financing Borrowingl Money Repayingl Loans/Distributionsl tol owners
Q:l Whatl arel thel fourl categoriesl ofl notesl includedl inl financiall statements?
Answer:
1.l Summaryl ofl significantl accountingl policies
2.l Additionall infol re:l summaryl totalsl foundl inl statements
3.l Disclosurel ofl infol notl recognizedl inl statements 4.l Supplementall infol requiredl byl FASBl orl SEC
Q:l Whatl arel common-sizel financiall statements?
Answer:
Common-sizel statementsl displayl itemsl asl al percentagel ofl al commonl basel figure.
Q:l Howl arel common-sizel financiall statementsl used?
Answer:
Thesel statementsl arel commonlyl usedl forl easyl analysisl betweenl differentl companiesl orl ofl thel samel companyl periodl tol period.
Q:l Whatl isl horizontall analysisl andl whatl informationl doesl itl provide?
Answer:
H.l A.l comparesl al firmsl resultsl froml yearl tol year.l Itl isl usedl tol notel generall trendsl orl one-timel eventsl thatl mayl requirel furtherl investigation.
Q:l Whatl isl verticall analysisl andl whatl informationl doesl itl provide?
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