Wgu C214 Financial Management Complete Study Guide With Solved Questions

WGU C214 FINANCIAL MANAGEMENT
COMPLETE STUDY GUIDE WITH SOLVED
QUESTIONS

◉ Total Liabilities.
Answer: represent the total amount of money the firm owes its
creditors


◉ Total Shareholder's Equity.
Answer: refers to the difference in the value of the firm's total assets
and the firm's total liabilities


◉ Total assets.
Answer: sum of total shareholders' equity and total liabilities,
represents the resources owned by the firm


◉ Current assets.
Answer: Consists of firms cash plus other assets the firm excepts to
convert to cash within 12 months or less, ex: receivables and
inventory


◉ Fixed assets.

, Answer: are assets that the firm does not expect to sell within one
year. Ex: plant, equipment and land


◉ Current Liabilities.
Answer: Represent the amount that the firm owes to creditors that
must be repaid within a period of 12 months or less. Ex: accounts
payable, notes payable


◉ long-term liabilities.
Answer: Refer to debt with maturities longer than a year such as
bank loans, bonds.


◉ Liquidity.
Answer: generally refers to the firms ability to convert its current
assets into cash so that it can pay its current liabilities on time.


◉ Net working capital.
Answer: By computing this we can measure the firms liquidity.
(Equal to current assets less current liabilities).


◉ The income statement will contain what?.
Answer: 1.Revenues 2. Expenses 3. Net income