c214 Financial Management WGU Exam Questions With Complete Solutions

Trading on the NYSE is executed without a specialist T or F - ANSWER-False What are 2 types of financial instruments - ANSWER-Stocks and BondsM When revenue is matched with cost of sales in an income statement it is called? - ANSWER-matching principle A high quality customer just purchased $500,000 worth of product from your company. The contract calls for immediate delivery of this product with a cash payment of $300,000 today and $200,000 in the next 60 days. The expense associated with the product if $300,000, of which $100, has not been paid to your supplier. Under the accrual based accounting system you will most likely report Revenues of ___________________________Expenses of _______________________________ - ANSWER-Revenue $500,000, Expenses of 300,000 A firm reported retained earnings of $300 12/31/2021. For 12/31/2021, the firm reports retained earnings of $400 and pays dividends of $25. What was the net income in 2023? - ANSWER-Beg RE 300, NI = 125, Div -25, RE 400. A basic equation of the balance sheet is - ANSWER-Assets = equity - liabilities Sales minus cost of sales minus other expenses equals what? - ANSWER-Operating income or EBIT What is the balance sheet known as a permanent statement? - ANSWER-Because the other statements are reset at the end of the year. How do you calculated the change in retained earning? - ANSWER-Net income - dividends