WGU C214 OA Financial Management Prep Exam Questions and Answers Updated 2024

The stock price of a company increases and the market is deemed efficient. What assumption can be made? A new, patented, product was introduced to the market. Which statement is true about how the global market affects the U.S. Foreign investors and fund managers make decisions based on financial reporting standards developed and financial statements audited overseas. What are secondary markets? Markets where securities are traded subsequent to the initial offering. A special interest group in the U.S. has been lobbying intensely for protectionism through increased tariffs and trade restrictions, with the argument that it will save jobs in the industry they represent. What is the most likely result if they are successful? Employees and shareholders of the domestic industry that produce the protected goods will benefit and the nation will be hurt. What do the content and structure of a balance sheet report? The assets, liabilities, and equity at a point in time What is the basis used to compute a company's income tax expense? Taxes payable. What is the firm's cash flow from financing, using the data above? Net Income $1000 Depreciation Expense $300 Change in operating assets $600 Change in net PP&E $5000 Change in long-term Liabilities $1000 Dividends Paid $200 $800 inflow A company reported an increase in accounts payable of $2000 for the current year. Half of this amount is expected to be paid next period. How will this change in accounts payable be reported on the statement of cash flows? The change will increase cash flow from operations by $2000 A company's trial balance shows $900 in long-term debt. On which financial statement should this be shown? The balance sheet What do cash flows from financing activities generally relate to? A firms' debt and equity transactions