WGU C214 Concepts Only Multi Choice Version with latest test.

WGU C214 Concepts Only Multi Choice Version with latest test. Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) - correct answers.False Stocks and bonds are two types of financial instruments (T/F) - correct answers.True The matching principle in accrual accounting requires that: - correct answers.Revenues be recognized when the earnings process is complete and matches expenses to revenues recognized. A basic equation for the balance sheet is: - correct answers.Equity = Assets - Liabilities Why is the Balance Sheet known as a permanent statement? - correct answers.Because the other statements are reset at the end of the fiscal year How do you calculate the change in Retained Earnings? - correct answers.Net Income - Dividends Which of the following is generally true? - correct answers.Operating Income and EBIT are the same Which components are part of total assets? - correct answers.Cash Accounts Receivable, Inventory, Long Term Assets Which components are part of current assets? - correct answers.Inventory, Cash, Accounts Receivable, Short Term Investments Which components are part of Total Liabilities? - correct answers.Bonds, Accounts Payable, Mortgage When Fixed Assets increase what happens to Cash? - correct answers.Cash decreases Which is the purpose of the statement of cash flows? - correct ins the change in cash balance for one period of time The OIROI (Operating Income Return on Investment) uses what elements on the income statement? - correct answers.EBIT, Total Assets Why would a company be interested in the TAT-Total Asset Turnover-ratio? a - correct answers.How efficient assets are at producing sales Which of the following gives the largest effective rate (APY) - correct answers.18.6% compounded daily What does the beta coefficient represent? - correct answers.It is a statistically-derived measure of volatility Why is depreciation expense taken out of the net income calculation, yet added back at the end? - correct answers.Because depreciation expense is tax deductible Why is the NPV preferred over the IRR? Pick Two - correct answers.1-It measures the dollar value 2- It is harder to calculate What does the Degree of Financial Leverage indicate? - correct answers.The reliance on debt If a company has a high degree of financial leverage, what does that tell us about the firm's risk profile? - correct answers.Higher profits to shareholders What is the cash cycle? - correct answers.The amount of time to regenerate cash Why is float important to understand? - correct answers.To time cash expenditures What should a company do to manage its working capital? - correct answers.Collect quickly and pay slowly What would be a source of information to determine Replacement Cost? - correct answers.Building Appraisal What does the Sarbanes-Oxley Act require companies to do? - correct answers.Have internal control audits FINRA (Financial Industry Regulatory Authority) does the following: (pick one) - correct answers.Prosecutes naughty stock brokers If a product is made 100% domestically, what can affect its domestic market? - correct answers.International competition If a company makes its product in a foreign country where labor costs are much lower, what happens? - correct answers.Profits go up and domestic employment decreases. If the value of a dollar increases, the price of imports: - correct answers.Decreases Why would a farmer buy a hedge when he signs a contract to sell produce overseas? - correct answers.To reduce currency risk A basic equation for the balance sheet is: - correct answers.Equity = Assets - Liabilities Why is the Balance Sheet known as a permanent statement? - correct answers.Because the other statements are reset at the end of the fiscal year How do you calculate the change in Retained Earnings? - correct answers.Net Income - Dividends Which of the following is generally true? - correct answers.Operating Income and EBIT are the same Which components are part of total assets? - correct answers.Cash Accounts Receivable, Inventory, Long Term Assets Which components are part of current assets? a. Cash, Accounts Receivable, Property Plant & Equipment b. Accounts Receivable, Accounts Payable, Inventory c. Long Term Debt, Property Plant & Equipment, Common Stock d. Inventory, Cash, Accounts Receivable, Short Term Investments - correct answers.Inventory, Cash, Accounts Receivable, Short Term Investments