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c214 Financial Management WGU

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c214 Financial Management WGU Trading on the NYSE is executed without a specialist T or F - CORRECT ANSWERS False What are 2 types of financial instruments - CORRECT ANSWERS Stocks and BondsM When revenue is matched with cost of sales in an income statement it is called? - CORRECT ANSWERS matching principle A high quality customer just purchased $500,000 worth of product from your company. The contract calls for immediate delivery of this product with a cash payment of $300,000 today ...

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WGU C214 Financial Management

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WGU C214 Financial Management Net Income = - CORRECT ANSWERS Revenues - Expenses Revenues - Cost of Goods Sold (COGS) - CORRECT ANSWERS Gross Profit Gross Profit - Operating Expenses - CORRECT ANSWERS EBIT EBIT = - CORRECT ANSWERS Sales - Costs - Depreciation EBIT = - CORRECT ANSWERS Operating Profit or Operating Income EBIT - Interest Expense = - CORRECT ANSWERS Earnings Before Taxes Earnings before Taxes - Tax Expense = - CORRECT ANSWERS Net Income (NI) Retained Earnings - CORRECT ANSW...

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WGU - C214 Financial Management - Final

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WGU - C214 Financial Management - Final Statement of Cash Flows - CORRECT ANSWERS 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) - CORRECT ANSWERS Cash flow that a company generates as a result of day-to-day business operations. Deals with Current Assets and Current Liabilities. Cash Flow from Investing Activities (CFI) - CORRECT ANSWERS Cash flow that is generated from in...

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WGU - Financial Management - C214

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WGU - Financial Management - C214 A bond is similar to a loan (T or F) - CORRECT ANSWERS True A bond is a debt instrument issued by corporations or governments. - CORRECT ANSWERS True A syndicate is a group of investors that is temporarily formed to handle the issuance of new bonds. - CORRECT ANSWERS True If the price of a particular stock begins to heavily fluctuate, then the specialist will __________ the spread. - CORRECT ANSWERS Increase the spread A stock is a share of __________...

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WGU Financial Management C214

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WGU Financial Management C214 Financial Securities (3 types) - CORRECT ANSWERS 1. Gov Securities(treasury bonds)- gov invest in natl defense to freeways. Loans provide by the public to gov. When tax revs fall short to cover expenditures, gov issues bonds from 60 days-30yrs. 2. Corporate Bonds- Google might be looking to invest another $50 billion in low-orbiting satellites; however, because of its size, the company cannot walk into a local bank hoping for a $50-billion loan. Instead, ...

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WGU C214 Financial Management Fast and Furious

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WGU C214 Financial Management Fast and Furious T1 Primary financial markets - CORRECT ANSWERS 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 - CORRECT ANSWERS When a company wants to issue stock, bonds, or other publicly traded securities, it hires an * underwriter * to manage what is often a long and complex process. After determining the offering stru...

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WGU C214 Financial Managment Topic 3

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WGU C214 Financial Managment Topic 3 Statement of Cash Flows (SCF) Cash from Operation (CFO) Cash from investing (CFI) Cash from financing (CFF) - CORRECT ANSWERS - cash flow reveals the true health of a company; - explains cash in & cash out from operations (CFO), investing & financing for a given year. CFO + CFI + CFF = change in cash= ending cash - beginning cash -line items on the cash flow statement serve to show why & where the increase occurred & what type of activity (i.e., ...

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WGU C214 Financial Management Concepts Practice Exam

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WGU C214 Financial Management Concepts Practice Exam The matching principle in accrual accounting requires that: a. Expenses are matched to revenue recognition. b. Expenses are matched to the year in which they are incurred c. Revenues are matched to the year in which they are booked d. Revenues should be large enough to match expenses a The addition to retained earnings each year is: a. Net Income b. Net Income minus dividends c. Net Income plus dividends d. Net Income times the Pa...

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C214 WGU Financial Management End of Section Questions

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C214 WGU Financial Management End of Section Questions Economics is a subfield of Finance (t/f) 1.1 - CORRECT ANSWERS F. Finance is a subfield of Economics. (right answer) Which of the following is not an example of firm capital? 1.1 - CORRECT ANSWERS Financial markets Which of the following are examples of firm capital? 1.1 - CORRECT ANSWERS Cash, Labor, Machinery Capital is defined as a financial asset. (t/f) 1.1 - CORRECT ANSWERS T. Capital is defined as a financial asset. Corp...

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