Wall Street Prep The Premium Package Review: Accounting & Financial Statement Analysis Exam. 2026

Wall Street Prep The

Premium Package Review:

Accounting & Financial

Statement Analysis Exam.

2026

Wall Street Prep The Premium Package

Review: Accounting & Financial Statement

Analysis Exam.

Score: 95%, 38 correct out of 40

Question 1

Assume US GAAP to answer this question.

In 2017, $2 million in wages were earned and no cash wages were paid. In 2018, $8

million in wages were earned and $7 million in cash wages were paid. Cash wages

were used to first pay wages earned in 2017 with the remainder used to pay wages

earned in 2018. Any earned but unpaid wages will be paid during the first quarter of

2019. Using only the information provided, which of the following statements is most

accurate?