Financial Management (C214) – PA Exam Test Questions and Answers Graded A+
How can a private firm appropriately maximize sharehold-
er value?
By making decisions that keep the control of the business
- By increasing the firm's stock price
with the owners
- By reducing the firm's labor
- 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?
- Because international investing in a global marketplace
is the concern of American investors
- Because an exclusively domestically focused regulatory Because international investing in a global marketplace is
approach is still ettective the concern of American investors
- Because weaving international concerns into domestic
policy is cost-ettective
- Because other jurisdictions have the same priorities and
solutions as the United States
What is one of the two basic types of financial instru-
ments?
- Checking accounts Bonds
- Bonds
- Euros
- Hedge funds
What are the likeliest outcomes if a company outsources
the manufacturing of its products to a foreign country?
Choose 2 answers.
, Financial Management (C214) – PA Exam Test Questions and Answers Graded A+
- Consumer prices will decrease.
- Taritts will decrease.
Consumer prices will decrease.
- Domestic wages will increase.
Domestic employment will decrease.
- Production capacity will decrease.
- Domestic employment will decrease.
What do the content and structure of a balance sheet
report?
- The gains and losses at a point in time The assets, liabilities, and equity at a point in time
- The revenues and expenses for a period of time
- The assets, liabilities, and equity at a point in time
- The expenses, assets, and liabilities for a period in time
A company reported an increase in accounts receivable of
$5,000 during the recent period. Half of this amount is
expected to be collected next period.
How will this change in accounts receivable attect the cash
flows from the operating activities section?
- The change will decrease cash flows from operations by The change will decrease cash flows from operations by
$2,500. $5,000.
- The change will increase cash flows from operations by
$2,500.
- The change will increase cash flows from operations by
$5,000.
- The change will decrease cash flows from operations by
$5,000.
Which statement accurately explains the recognition of
revenues and expenses under accounting income and
income for tax purposes?
, Financial Management (C214) – PA Exam Test Questions and Answers Graded A+
Revenue and expenses recognized must be matched with
assets.
Revenue and expenses recognized must be matched with
liabilities.
Revenues and expenses may be recognized in one period
Revenues and expenses may be recognized in one period for accounting income purposes and in a ditterent period
for accounting income purposes and in a ditterent period for income tax purposes.
for income tax purposes.
Revenues and expenses are always recognized in the
same period for accounting income purposes and income
for tax purposes.
Selected Data for 20x2 for ABD Inc.
Net Income$ 1,000Depreciation
Expense$ 300
Change in Operating Assets$ 600
Change in Net Property, Plant, and Equipment$ 5,000
Changes in Long-Term Liabilities$ 1,000
Dividends Paid$ 200
$5,300 outflow
What is this firm's cash flow from investments, using the
data above and assuming no asset disposals?
$5,000 inflow
$5,000 outflow
$5,300 inflow
$5,300 outflow
What is the basic equation for a balance sheet?
Revenue + expenses = income
How can a private firm appropriately maximize sharehold-
er value?
By making decisions that keep the control of the business
- By increasing the firm's stock price
with the owners
- By reducing the firm's labor
- 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?
- Because international investing in a global marketplace
is the concern of American investors
- Because an exclusively domestically focused regulatory Because international investing in a global marketplace is
approach is still ettective the concern of American investors
- Because weaving international concerns into domestic
policy is cost-ettective
- Because other jurisdictions have the same priorities and
solutions as the United States
What is one of the two basic types of financial instru-
ments?
- Checking accounts Bonds
- Bonds
- Euros
- Hedge funds
What are the likeliest outcomes if a company outsources
the manufacturing of its products to a foreign country?
Choose 2 answers.
, Financial Management (C214) – PA Exam Test Questions and Answers Graded A+
- Consumer prices will decrease.
- Taritts will decrease.
Consumer prices will decrease.
- Domestic wages will increase.
Domestic employment will decrease.
- Production capacity will decrease.
- Domestic employment will decrease.
What do the content and structure of a balance sheet
report?
- The gains and losses at a point in time The assets, liabilities, and equity at a point in time
- The revenues and expenses for a period of time
- The assets, liabilities, and equity at a point in time
- The expenses, assets, and liabilities for a period in time
A company reported an increase in accounts receivable of
$5,000 during the recent period. Half of this amount is
expected to be collected next period.
How will this change in accounts receivable attect the cash
flows from the operating activities section?
- The change will decrease cash flows from operations by The change will decrease cash flows from operations by
$2,500. $5,000.
- The change will increase cash flows from operations by
$2,500.
- The change will increase cash flows from operations by
$5,000.
- The change will decrease cash flows from operations by
$5,000.
Which statement accurately explains the recognition of
revenues and expenses under accounting income and
income for tax purposes?
, Financial Management (C214) – PA Exam Test Questions and Answers Graded A+
Revenue and expenses recognized must be matched with
assets.
Revenue and expenses recognized must be matched with
liabilities.
Revenues and expenses may be recognized in one period
Revenues and expenses may be recognized in one period for accounting income purposes and in a ditterent period
for accounting income purposes and in a ditterent period for income tax purposes.
for income tax purposes.
Revenues and expenses are always recognized in the
same period for accounting income purposes and income
for tax purposes.
Selected Data for 20x2 for ABD Inc.
Net Income$ 1,000Depreciation
Expense$ 300
Change in Operating Assets$ 600
Change in Net Property, Plant, and Equipment$ 5,000
Changes in Long-Term Liabilities$ 1,000
Dividends Paid$ 200
$5,300 outflow
What is this firm's cash flow from investments, using the
data above and assuming no asset disposals?
$5,000 inflow
$5,000 outflow
$5,300 inflow
$5,300 outflow
What is the basic equation for a balance sheet?
Revenue + expenses = income
