WGU C214 Financial Management OA Study Set with Complete Solutions(SCORED A+)

Trading on the NYSE is executed without a specialist (i.e. a market maker). True or False? - ANSWER-False Stocks and Bonds are two types of financial instruments. True or False? - ANSWER-True When revenue is matched with cost of sales in an Income statement it is called? - ANSWER-Matching principle Basic balance sheet equation is what? - ANSWER-Equity = Assets - Liabilities Why is the balance sheet known as the permanent statement? - ANSWER-Because the other statements are reset at the end of the fiscal year. How do you calculate the change in retained earnings? - ANSWER-Net income-dividends Sales - Cost of Sales - other expenses = - ANSWER-Operating Income or EBiT Name four accounts that are part of total assets? - ANSWER-Cash, Accounts receivable, inventory, long term assets Name three accounts that are part of total liabilities? - ANSWER-Bonds, accounts payable and mortgage Name four accounts that are part of current assets? - ANSWER-Inventory, cash, accounts receivable and short term investments.