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C201 WGU Business Acumen -Questions And Answers
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C201 WGU Business Acumen -Questions And Answers
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By: darrenbernardi • 11 months ago
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C201 WGU Business Acumen -Questions And Answers
Frank, chief financial officer for a company, wants to take a look at the summary of expenses, revenues, and profits of the firm for the most recent quarter. He can best find this information by consulting the _____. Correct Ans - income statement
The _____ was created by the Sarbanes-Oxley Act of 2002. Correct Ans - Public Accounting Oversight Board
Which of the following financial statements shows a company's financial position on a particular date? Correct Ans - Balance sheet
Expenses that have been incurred (such as wages) but have yet to be paid are reported on the balance sheet as _____. Correct Ans - accruals
What are some examples of non-cash expenses? Correct Ans - Income taxes, operating costs, cost of goods sold
Which of the following current assets is NOT included when calculating the acid-test ratio? Correct Ans - inventory
If a firm has a current ratio of 2.5, it means that for every $2.50 in _____ it has $1.00 in _____. Correct Ans - current assets; current liabilities
_____ ratios are designed to evaluate a firm's ability to generate revenues in excess of operating costs and other expenses. Correct Ans - Profitability
All of the following are profitability ratios Correct Ans - net profit margin
gross profit margin
return on equity What was established in 1973 to promote worldwide consistency in financial reporting practices? Correct Ans - The International Accounting Standards Committee (IASC)
Why do we avoid an over-reliance on borrowing? Correct Ans - to gain
leverage
Households, businesses, government, financial institutions, and financial markets together form what is known as the Correct Ans - financial system
What are 3 money market instruments? Correct Ans - Treasury bills, commercial paper, and bank certificates of deposit.
What are 3 types of bonds? Correct Ans - Municipal bonds, Corporate bonds, mortgage pass-through security
Types of securities Correct Ans - Money Market Instruments, bonds and stock
Money market instruments are Correct Ans - short-term debt securities issued by governments, financial institutions, and corporations.
The basic form of corporate ownership is embodied in _____. Correct Ans - common stock
Tom just bought a bond from United Pet Group. This bond is only backed by the financial reputation of the company. What type of bond did Tom buy? Correct Ans - Debenture
An owner of which form of stock would receive dividend payments first? Correct Ans - Preferred stock
The _____ is a collection of financial markets in which previously issued securities are traded among investors. Correct Ans - Secondary market
Which of the following is true about the Fed? Correct Ans - The Fed acts as the banker's bank.
Virtually, all large commercial banks are Fed members.
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