OBJECTIVE ASSESSMENT FINANCIAL MANAGEMENT/WGU
C214 OBJECTIVE ASSESSMENT FINANCIAL MANAGEMENT
LATEST VERSION UPDATED AND REVISED IN 2025
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
name four accounts that are a part of total assets - ANSWER -
>cash accounts receivable, inventory, long term assets.
Sales misnus cost of sales minuss other expenses equals what?
- ANSWER ->Operating Income or EBIT
Name 3 accounts that are part of current assets? - ANSWER -
>Inventory, Cash, accounts receivables, short term investments
name 4 accounts that re part of total liabilities - ANSWER -
>Bonds, accounts payable, mortgage
, Intel reported the following for 2014:
Net Income 100,000
Depreciation 20,000
Change in A/R 10,000
What is the cash flow from operating activities? - ANSWER -
>100 + 20 - 10 = 110
name 3 accounts that are only included in Cash Flow from
Financing CFF - ANSWER ->Common stock, dividends paid,
bonds payable
Define the statement of cash flows - ANSWER ->calculated for
the same period of time as the Income Statement
is calculated based on the Income Statement and the changes
in the balance sheet
is one of the 3 basic accounting statements
Intel reported the following for 2014:
Gross Equipment (1/1/14) 50,000
Gross Equipment (12/31/14) 65,000
Net income 100,000
Depreciation 20,000
What is the cash flow from investing activities for 2014? -
ANSWER ->15000, depreciation is not counted when using
Gross PPE
What is the cash flow from operations given the following
information?
C214 OBJECTIVE ASSESSMENT FINANCIAL MANAGEMENT
LATEST VERSION UPDATED AND REVISED IN 2025
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
name four accounts that are a part of total assets - ANSWER -
>cash accounts receivable, inventory, long term assets.
Sales misnus cost of sales minuss other expenses equals what?
- ANSWER ->Operating Income or EBIT
Name 3 accounts that are part of current assets? - ANSWER -
>Inventory, Cash, accounts receivables, short term investments
name 4 accounts that re part of total liabilities - ANSWER -
>Bonds, accounts payable, mortgage
, Intel reported the following for 2014:
Net Income 100,000
Depreciation 20,000
Change in A/R 10,000
What is the cash flow from operating activities? - ANSWER -
>100 + 20 - 10 = 110
name 3 accounts that are only included in Cash Flow from
Financing CFF - ANSWER ->Common stock, dividends paid,
bonds payable
Define the statement of cash flows - ANSWER ->calculated for
the same period of time as the Income Statement
is calculated based on the Income Statement and the changes
in the balance sheet
is one of the 3 basic accounting statements
Intel reported the following for 2014:
Gross Equipment (1/1/14) 50,000
Gross Equipment (12/31/14) 65,000
Net income 100,000
Depreciation 20,000
What is the cash flow from investing activities for 2014? -
ANSWER ->15000, depreciation is not counted when using
Gross PPE
What is the cash flow from operations given the following
information?
