WGU d366 study questions section 1, D366
Study Guide , Financial Statement Analysis for
Valuation, WGU D366 Section 2 | Questions
Solved with 100% Correct & Verified Answers
A firm is trying to determine if its customers are highly price-sensitive or relatively
insensitive.
Which of the economic framework attributes would apply to this analysis?
Demand
The demand attribute involves asking questions such as:
Are customers highly price-sensitive, as in the case of automobiles, or are they relatively
insensitive, as in the case of soft drinks?
Is demand growing rapidly, or is the industry relatively mature?
A chain retail store's products are also offered at many other retail stores but at
higher prices.
Which competitive strategy is this store implementing?
Low-cost leadership strategy
A coffee company offers high-quality products that may be customized to each
customer's taste, excellent customer service, and an inviting atmosphere.
Which competitive strategy is this company implementing?
Product differentiation strategy
What are two accurate statements regarding accounting quality? Choose two
answers.
Accounting information should provide relevant information to forecast the firm's
expected future earnings and cash flows.
The primary determinant of quality accounting information is if the company received
an unqualified opinion from an independent auditor.
What are two accurate statements regarding common size financial statements?
Choose two answers.
, Common-size financial statements must be carefully interpreted.
Common-size financial statements is a simple but powerful tool for analyzing financial
statements.
Which financial statement analysis tool is helpful in highlighting the relative rates of
growth in financial statement amounts from year-to-year and over longer periods of
time?
Percentage change financial statements
Which is an accurate statement regarding market efficiency?
Market efficiency describes the degree to which the capital market impounds
information into security prices.
A coffee company is estimating the financial liabilities, financial assets, and common
equity capital that it will need to finance its net operating assets for the upcoming
quarter.
Which step of the forecasting process is the company in?
Step 4
A coffee company is estimating its sales revenues for the upcoming quarter.
Which step of the forecasting process is the company in?
Step 1
Step 1 of the forecasting process involves projecting revenues from selling products and
delivering services to customers.
A coffee company is estimating the gain that will result from selling one of its stores in
the upcoming quarter.
Which step of the forecasting process is the company in?
Step 5
A coffee company is estimating its cost of goods sold for the upcoming quarter.
Which step of the forecasting process is the company in?
Step 2
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