WGU C214 Financial Management Q&A Exam Bundle

What standards are used to help US investors understand and compare foreign financial statements to domestic financial statements? International Financial Reporting Standards When a company is optimizing its resources and maintaining or improving productivity, they are engaging in what hypothesis...

Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) F (T/F) Stocks and bonds are two types of financial instruments True The matching principle in accrual accounting requires that: a. Revenues be recognized when the earnings process is complete and matches expe...

1. A firm reported the following: Net Income 100,000 Depreciation 25,000 Change in NWC 15,000 What is the CFO (cash flow from operations)? a. 100,000 b. 110,000 c. 120,000 d. (130,000) CFO = Net Income + Depreciation - Increase NWC =100,000 + 25,000 - 15,000 2. What is the Cash Flow fr...

Accrual Accounting Accounting system based on recording accounts based on historical prices and the matching principle Matching Principle Accrual accounting principle to match revenues and expenses in the same period Historical cost principle Accrual accounting principle to recorded assets, li...

Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) False Stocks and bonds are two types of financial instruments (T/F) True The matching principle in accrual accounting requires that: Revenues be recognized when the earnings process is complete and matches expens...

Which will be larger: actual taxes payable or accounting income tax expense Accounting tax expense will be higher; actual taxes based on IRS rules will be lower Which cash flow measures the change in long term assets? Cash flow investing Which financial ratios measure "efficiency"? Asset tur...

Which will be larger: accrual taxes payable or accounting income tax expense Accounting tax expense will be higher; actual taxes based on IRS rules will be lower Which financial ratios measure "efficiency"? Asset turnover and Fixed Asset turnover Which ratio is the best measure of a firm's ...

Secured Loan some type of asset is being used as collateral Unsercure Loan not backed by a specific asset Bond primary means of money borrowed in the corporate world; it is a debt agreement w/investors & savers that obligates the corporation to make certain payments- a fixed income sercurity; ...

Economics is a subfield of Finance (t/f) 1.1 F. Finance is a subfield of Economics. (right answer) Which of the following is not an example of firm capital? 1.1 Financial markets Which of the following are examples of firm capital? 1.1 Cash, Labor, Machinery Capital is defined as a financia...

T1 Primary financial markets the markets in which securities (stocks and bonds) are first issued. This is where the issuers (the firms) and the buyers (the investors) will engage in an exchange. T1 Syndicate When a company wants to issue stock, bonds, or other publicly traded securities, it hires...

Hedging The process of eliminating risk Tariffs Taxes levied on goods imported into a country Foreign Exchange Risk (AKA FX Risk) Risks associated with the changing values of countries' concurrences Direct Quote If you are located in the United States, a direct quote is one where the forei...

Which two effects does the unbundling and offshoring of production have on employment when the global value chain is taken into consideration? Unbundling and offshoring allows firms to offer intermediate and final goods at lower prices, thus increasing employment. Unbundling and offshoring decrease...

How can a private firm appropriately maximize shareholder value? By making decisions that keep the control of the business with the owners Why are American regulators focused on international investing in a global marketplace? Because international investing in a global marketplace is the concern...

If accounts receivable increases, what is the impact on CFO? CFO decreases Are actual taxes paid the same as how on the GAAP income statement? No. Actual Taxes = IRS Rules Income Statement = GAAP Which decisions require using subjective estimates? Economic life of a new asset. If there ...