WGU D076 Module 9 questions with verified answers
Company ABC would like to continue to grow, but in order to maintain control of
all decisions and ownership, it wants to avoid issuing new stock. Which calculation
will show the company's leadership the fastest that ABC can grow? Ans✓✓✓-
Sustainable growth rate
How can a company reduce its discretionary financing needed (DFN)? Ans✓✓✓-
Increase the net margin.
How can a firm grow its fixed assets if it is expecting growth but has reached
capacity with its fixed assets? Ans✓✓✓-Invest a substantial amount of money at
one time to increase capacity.
How does financial forecasting help with financial decision-making? Ans✓✓✓-It
helps decision makers understand the impacts of today's actions on the future
performance of the firm.
If a company expects sales to grow by 10% next year, which account might also
increase by 10%? Ans✓✓✓-Cost of goods sold
What are spontaneous accounts? Ans✓✓✓-Accounts that vary naturally with
sales
What does the discretionary financing needed (DFN) tell us? Ans✓✓✓-The total
amount of funding that management will need to obtain through discretionary
financing sources
Company ABC would like to continue to grow, but in order to maintain control of
all decisions and ownership, it wants to avoid issuing new stock. Which calculation
will show the company's leadership the fastest that ABC can grow? Ans✓✓✓-
Sustainable growth rate
How can a company reduce its discretionary financing needed (DFN)? Ans✓✓✓-
Increase the net margin.
How can a firm grow its fixed assets if it is expecting growth but has reached
capacity with its fixed assets? Ans✓✓✓-Invest a substantial amount of money at
one time to increase capacity.
How does financial forecasting help with financial decision-making? Ans✓✓✓-It
helps decision makers understand the impacts of today's actions on the future
performance of the firm.
If a company expects sales to grow by 10% next year, which account might also
increase by 10%? Ans✓✓✓-Cost of goods sold
What are spontaneous accounts? Ans✓✓✓-Accounts that vary naturally with
sales
What does the discretionary financing needed (DFN) tell us? Ans✓✓✓-The total
amount of funding that management will need to obtain through discretionary
financing sources
