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WGU C201 BUSINESS ACUMEN OBJECTIVE ASSESSMENT 2 LATEST
VERSIONS (VERSION A AND B) LATEST 2025 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED||
Which two activities are finance activities rather than accounting
activities? Choose 2 answers - ANSWER-Making capital market
investments, creating a financial plan
Which three sources should a business consider when seeking a
long-term source? Choose 3 answers - ANSWER-Hedge funds,
Venture capital, public sale of stocks
In which type of security should a business invest its excess cash
in anticipation of paying off the current year's tax liability? -
ANSWER-Commercial paper
Which role does the underwriter play in financing business
operations when using the capital market to sell securities to the
public? - ANSWER-It insures the value of the security to the
investor
,2|Page
Why should a manager use financial controls in a firm's financial
plan? - ANSWER-to determine the accuracy of forecasted
revenues, costs, and expenses
What does a CFO use in financial planning to determine the
expected level of revenue for future periods? - ANSWER-Sales
forecast plus non-sales revenue
How did the Dodd-Frank Wall Street Reform and Consumer
Protection Act impact retailers? - ANSWER-capped the debit card
fee at 21 cents
Which two activities are prohibited by insider trading laws and
should be avoided by a firm's employees? Choose 2 answers -
ANSWER-Selling company stock because a co-worker told the
employee the company's new drug is failing in clinical trial, buying
stock in the public company for which the employee works based
on a conversation the employee overheard at a cocktail party
between two of the company's executives.
,3|Page
Which two risks does a firm face by funding the purchase of long-
term assets with short-term funding sources? Choose 2 ansers -
ANSWER-Volatility of interest rates, frequent renewals
Which funding source should a firm use if it wishes to secure
long-term financing while retaining all of its equity? - ANSWER-
private equity fund
Which three characteristics make commercial paper a low-risk,
attractive source of short-term funding for a business? -
ANSWER-It has a maturity that ranges between 1 and 270 days,
it carries interest rates that are 1 to 2 percent less than bank
loans, it can make large amounts of money available
What should a firm do to manage the risk of using leverage when
exploring long-term funding options? - ANSWER-Ensure that
earnings remain larger than interests payments
Which financial statement should an investor examine to identify
the liabilities of a firm? - ANSWER-The balance sheet
, 4|Page
A company wishes to determine if it should fund a project with
bonds or equity. Which business concept would it most likely use
to assist in the decision? - ANSWER-leverage
Which calculation determines a firm's return on equity? -
ANSWER-net income divided by average equity
Why should companies that are conservative investors with
liquidity concerns invest their excess cash in money market
funds? - ANSWER-it converts easily to cash
Which regulatory relationship with the Securities and Exchange
Commission (SEC) historically has acted to prohibit the U.S. from
adopting the International Financial Reporting Standards (IFRS)?
- ANSWER-FASB requires companies to comply with GAAP that
differ from IFRS
Which users of financial statements use the financial statements
to evaluate operations of the firm and to make investment
decisions? - ANSWER-owners and creditors
WGU C201 BUSINESS ACUMEN OBJECTIVE ASSESSMENT 2 LATEST
VERSIONS (VERSION A AND B) LATEST 2025 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED||
Which two activities are finance activities rather than accounting
activities? Choose 2 answers - ANSWER-Making capital market
investments, creating a financial plan
Which three sources should a business consider when seeking a
long-term source? Choose 3 answers - ANSWER-Hedge funds,
Venture capital, public sale of stocks
In which type of security should a business invest its excess cash
in anticipation of paying off the current year's tax liability? -
ANSWER-Commercial paper
Which role does the underwriter play in financing business
operations when using the capital market to sell securities to the
public? - ANSWER-It insures the value of the security to the
investor
,2|Page
Why should a manager use financial controls in a firm's financial
plan? - ANSWER-to determine the accuracy of forecasted
revenues, costs, and expenses
What does a CFO use in financial planning to determine the
expected level of revenue for future periods? - ANSWER-Sales
forecast plus non-sales revenue
How did the Dodd-Frank Wall Street Reform and Consumer
Protection Act impact retailers? - ANSWER-capped the debit card
fee at 21 cents
Which two activities are prohibited by insider trading laws and
should be avoided by a firm's employees? Choose 2 answers -
ANSWER-Selling company stock because a co-worker told the
employee the company's new drug is failing in clinical trial, buying
stock in the public company for which the employee works based
on a conversation the employee overheard at a cocktail party
between two of the company's executives.
,3|Page
Which two risks does a firm face by funding the purchase of long-
term assets with short-term funding sources? Choose 2 ansers -
ANSWER-Volatility of interest rates, frequent renewals
Which funding source should a firm use if it wishes to secure
long-term financing while retaining all of its equity? - ANSWER-
private equity fund
Which three characteristics make commercial paper a low-risk,
attractive source of short-term funding for a business? -
ANSWER-It has a maturity that ranges between 1 and 270 days,
it carries interest rates that are 1 to 2 percent less than bank
loans, it can make large amounts of money available
What should a firm do to manage the risk of using leverage when
exploring long-term funding options? - ANSWER-Ensure that
earnings remain larger than interests payments
Which financial statement should an investor examine to identify
the liabilities of a firm? - ANSWER-The balance sheet
, 4|Page
A company wishes to determine if it should fund a project with
bonds or equity. Which business concept would it most likely use
to assist in the decision? - ANSWER-leverage
Which calculation determines a firm's return on equity? -
ANSWER-net income divided by average equity
Why should companies that are conservative investors with
liquidity concerns invest their excess cash in money market
funds? - ANSWER-it converts easily to cash
Which regulatory relationship with the Securities and Exchange
Commission (SEC) historically has acted to prohibit the U.S. from
adopting the International Financial Reporting Standards (IFRS)?
- ANSWER-FASB requires companies to comply with GAAP that
differ from IFRS
Which users of financial statements use the financial statements
to evaluate operations of the firm and to make investment
decisions? - ANSWER-owners and creditors
