WGU C214 Test Exam package (GRADED A+)

least liquid asset - ANSWER-inventory Inventory consists of 3 parts - ANSWER-Raw material, Work in progress, & finished goods Collection Float - ANSWER-Time from account receivable to collect cash Components of WACC (Weighted Average Cost of Capital) - ANSWER-Market value, tax, equity/commo...

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

1. The goal of the corporation is to: - ANSWER-Maximize stock price 2. Which of the following is a requirement for an efficient market - ANSWER-Competitive markets, transparency, liquidity 3. What is the relationship between risk and required return? - ANSWER-Higher risk causes higher required...

How can a private firm appropriately maximize shareholder value? - ANSWER-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? - ANSWER-Because international investing in a global marketpl...

Net Income = - ANSWER-Revenues - Expenses Revenues - Cost of Goods Sold (COGS) - ANSWER-Gross Profit Gross Profit - Operating Expenses - ANSWER-EBIT EBIT = - ANSWER-Sales - Costs - Depreciation EBIT = - ANSWER-Operating Profit or Operating Income EBIT - Interest Expense = - ANSWER-Ear...

Initial Outlay - ANSWER-The total dollar amount to begin a project. Cost of Equity - ANSWER-How much it costs a firm (in percentage terms) to use equity financing. From the investor's perspective, it is what they require given the riskiness/opportunity cost of the company. From the companies per...

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

Which political view of foreign direct investment (FDI) is most widely used by governments in the current international business environment? - ANSWER-Protectionism Which factors credit the degree of rivalry between a pair of competitors? 2 choices - ANSWER-Market Commonality Cost Structure W...

What does accounting focus on? - ANSWER-The impact a business's activities have on its overall financial performance Which report summarizes cash collections and cash expenditures from operating, investing, and financing activities over a period of time? - ANSWER-Statement of cash flows Which...

Statement of Cash Flows - ANSWER-Shows the change in cash balance for a period of time. Focuses only on items where cash is received, or cash is paid. Cash Flow from Operating Activities (CFO) - ANSWER-Cash flow that a company generates as a result of day-to-day business operations. Deals with Cu...

1. The goal of the corporation is to: a. Maximize profits b. Maximize market share c. Maximize stock price d. Minimize risk - ANSWER-c. Maximize stock price 2. Risk premium is best described as a. Return on risky securities b. Compensation for risk-taking c. Return on stocks d. Expected r...

Corporate Finance - ANSWER-focuses on financial decision making by a firms management Investments - ANSWER-various types of financial instruments (stocks, bonds, etc) Banking or Financial Institutions - ANSWER-make money by paying depositors a smaller interest rate than the interest rate charg...

Trading on the NYSE is executed without a specialist T or F - ANSWER-False What are 2 types of financial instruments - ANSWER-Stocks and BondsM When revenue is matched with cost of sales in an income statement it is called? - ANSWER-matching principle A high quality customer just purchased ...

The interest rate that a company promises to pay on bonds - ANSWER-Coupon Rate The interest rate on other comparable bonds - ANSWER-Market Rate The amount payable on maturity of the bond - ANSWER-Par Value Same as YTM - Yield to Maturity - ANSWER-Market rate Assumes stable growth rates a...