WGU C214 FINANCIAL MANAGEMENT OA STUDY QUESTIONS |GUARANTEED PASS!!
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Course
WGU C214
Institution
WGU C214
Trading on the NYSE is executed without a specialist (i.e. a market maker). True or False? - ACCURATE ANSWERS False
Stocks and Bonds are two types of financial instruments. True or False? - ACCURATE ANSWERS True
When revenue is matched with cost of sales in an Income statement it is called? -...
WGU C214 FINANCIAL MANAGEMENT
OA STUDY QUESTIONS
WGU C214 FINANCIAL MANAGEMENT OA STUDY QUESTIONS |GUARANTEED
PASS!!
Trading on the NYSE is executed without a specialist (i.e. a market
maker). True or False? - ACCURATE ANSWERS✔✔ False
Stocks and Bonds are two types of financial instruments. True or False?
- ACCURATE ANSWERS✔✔ True
When revenue is matched with cost of sales in an Income statement it is
called? - ACCURATE ANSWERS✔✔ Matching principle
Basic balance sheet equation is what? - ACCURATE ANSWERS✔✔
Equity = Assets - Liabilities
,Why is the balance sheet known as the permanent statement? -
ACCURATE ANSWERS✔✔ Because the other statements are reset at
the end of the fiscal year.
How do you calculate the change in retained earnings? - ACCURATE
ANSWERS✔✔ Net income-dividends
Sales - Cost of Sales - other expenses = - ACCURATE ANSWERS✔✔
Operating Income or EBiT
Name four accounts that are part of total assets? - ACCURATE
ANSWERS✔✔ Cash, Accounts receivable, inventory, long term assets
Name three accounts that are part of total liabilities? - ACCURATE
ANSWERS✔✔ Bonds, accounts payable and mortgage
Name four accounts that are part of current assets? - ACCURATE
ANSWERS✔✔ Inventory, cash, accounts receivable and short term
investments.
Name three accounts that are only included in cash flow from financing?
- ACCURATE ANSWERS✔✔ Common stock, dividends paid and
bonds payable
Define the statement of cash flows? - ACCURATE ANSWERS✔✔
Calculated for the same period of time as the incomes statement is
, calculated based on the income statement and changes in the balance
sheet is one of the three basic accounting statements.
When fixed assets increase what happens to cash? - ACCURATE
ANSWERS✔✔ Cash will decrease
What is the purpose of the statement of cash flows? - ACCURATE
ANSWERS✔✔ Explains the change in cash over the course of the
specified time frame.
Suppose the inventory turnover of a company is higher than the industry.
Based on this observation, which of the following is most likely? -
ACCURATE ANSWERS✔✔ The firm has too little inventory resulting
in lost sales or stock-outs.
If a company wishes to obtain a bank loan, will it want to have a higher
current ratio or a lower current ratio? - ACCURATE ANSWERS✔✔
Higher
The Operating Income Return on Investment (OIROI) uses what
elements on the income statement? - ACCURATE ANSWERS✔✔ EBIT
and total assets
Why would a company be interested in the Total Asset Turnover (TAT)
ratio? - ACCURATE ANSWERS✔✔ To see how efficient are at
producing sales
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