WGU C214 FINANCIAL MANAGEMENT CONCEPTS PRACTICE EXAM WITH ALL ANSWERS

WGU C214 FINANCIAL MANAGEMENT CONCEPTS PRACTICE EXAM WITH
ALL ANSWERS




1. Thevmatchingvprinciplevinvaccrualvaccountingvrequiresvthat:
a. Expensesvarevmatchedvtovrevenuevrecognition.
b. Expensesvarevmatchedvtovthevyearvinvwhichvtheyvarevincurred
c. Revenuesvarevmatchedvtovthevyearvinvwhichvtheyvarevbooked
d. Revenuesvshouldvbevlargevenoughvtovmatchvexpenses:va
2. Thevadditionvtovretainedvearningsveachvyearvis:
a. NetvIncome
b. NetvIncomevminusvdividends
c. NetvIncomevplusvdividends
d. NetvIncomevtimesvthevPayoutvRatio:vb
3. Netvworkingvcapitalvequals:
a. Currentvassets
b. Currentvliabilities
c. Currentvassetsvminusvcurrentvliabilities
d. Nonevofvthevabove:vc
4. WhatvdoesvthevSarbanes-OxleyvActvrequirevcompaniesvtovdo?
a. Havevavboardvofvdirectors
b. Registervallvforeignvsales
c. Makevestimatedvtaxvpayments
d. Havevtransparent,vaccuratevfinancialvstatements:vd
5. IfvavcompanyvproducesvandvsellsvavproductvonlyvinvthevU.S.,vwhatvinternat
ion-valvdevelopmentsvmayvaffectvitsvsales?
a. Fluctuatingvexchangevrates
b. Importsvofvcompetingvproducts
c. Immigrationvpolicy
d. InflationvinvEurope:vb
6. WhichvisvnotvavreasonvtovcalculatevWACC?
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,a. Tovmeasurevthevoverallvcostvofvfinancing
b. NeededvtovcalculatevCashvFlowvFinancing
c. Itvisvthevminimumvrequiredvreturnvforvinvestmentvprojects
d. Measuresvinvestors'vrequiredvreturnvonvfirmvsecurities:vb
7. Ifvavfirm'svgoalvisvtovmaximizevstockholdervwealth,vwhichvwouldvthevfi
rmvavoid?
a. Stockvbuybacks
b. Riskyvlong-termvinvestments
c. InvestmentsvwithvnegativevNPV
d. Transparencyvinvfinancialvstatements:vc
8. Invwhichvmarketvtransactionvisvthevcorporationvnotvinvolved?
a. PrimaryvMarkets




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, b. SecondaryvMarkets
c. IPO
d. BuyvBacks:vb
9. WhatvdoesvBetavmeasure?
a. ThevyieldvonvthevS&Pv500
b. Thevrelativevriskinessvofvanvindividualvstock
c. Indicatesvthevmarketvvaluevofvthevstock
d. Stocksvtovavoidvpurchasing:vb
10. Whichvaccountingvdecisionvusesvestimates?
a. Lifevofvavnewvasset
b. Accountsvpayable
c. Amortizationvschedulevforvavloan
d. Costvofvavnewvmachine:va
11. Anvinvestmentvwithvavtermvofvlessvthanvonevyearvis:
a. Avcurrentvliability
b. Avcurrentvasset
c. Isvinvretainedvearnings
d. Isvavlong-termvliability:vb
12. Whichvdoesvnotvaffectvthevrequiredvyieldvonvavbond?
a. Riskinessvofvthevissuer
b. Collateralization
c. Treasuryvyields
d. FacevValue:vd
13. Ifvthevyieldvofvavbondvisvhighervthanvthevcouponvrate,vwhatvisvthevprice?
a. Premiumvprice
b. Parvprice
c. Discountvprice
d. Secondaryvmarketvprice:vc
14. Whyvwouldvavcompanyvbuyvbackvoutstandingvstock?
a. Tovboostvthevpricevofvthevstock
b. Tovincreasevfinancialvleverage
c. Lackvofvinvestmentvopportunities
d. Allvofvthevabove:vd
15. Whichvcashvflowvstatementvcontainsvincomevstatementvitems?
a. CFO
b. CFI
c. CFF
d. Nonevofvabove:va


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