WGU D076 Pre- Assessment (New 2024/ 2025 Update) Finance Skills for Managers| Questions and Verified Answers| 100% Correct| A Grade

WGU D076 Pre- Assessment (New 2024/ 2025 Update) Finance Skills for Managers| Questions and Verified Answers| 100% Correct| A Grade QUESTION Which action will increase the return on equity of a firm? -Decreasing the profitability of the firm -Increasing the asset usage efficiency of the firm -Decreasing the debt financing of the firm -Increasing the liquidity of the firm Answer: Increasing the asset usage efficiency of the firm QUESTION Based on the information in the chart below, what can you conclude about Company A's ability to collect its accounts receivable (AR)? Entity: Percentage of Sales on Credit: AR Turnover: AR Collection Period Industry: 30%: 12: 30.42 Company A: 30%: 7: 52.14 -Company A is more efficient at collecting its accounts receivable than the industry. -Company A is less efficient at collecting its accounts receivable than the industry. -Company A collects its accounts receivable just as quickly as the average of other firms in the industry. -Company A collects its accounts receivable in a highly variable pattern compared to the industry. Answer: Company A is less efficient at collecting its accounts receivable than the industry. QUESTION Which principle of ratio analysis means that ratios are o