WGU C214 OA Financial Management Exam Questions And Answers

WGU C214 OA Financial Management Exam Questions And
Answers
1. The stock price of a company increases and the market is deemed efficient. What assumption can be made?
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A. A new, patented, product was introduced to the market.
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B. New machinery was purchased with a useful life of 20 years.
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C. Management is optimizing its resources and operating efficiently. ,/k ,/k ,/k ,/k ,/k ,/k , /k




D. Management hired new employees and invested in a training program. ,/k ,/k ,/k ,/k ,/k ,/k ,/k ,/k ,/k




2. Which statement is true about how the global market affects the U.S.
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A. A bad options trade executed by a foreign subsidiary of a Wall Street bank will affect layoffs overseas.
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B. A Bad derivatives trade executed by a foreign subsidiary of a Wall Street bank will affect layoffs overseas.
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C. American investors and fund managers make decisions based on financial reporting standards developed and
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financial statements audited overseas.
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D. Foreign investors and fund managers make decisions based on financial reporting standards developed and
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financial statements audited overseas.
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3. What are secondary markets?,/k ,/k ,/k




A. Markets where securities are traded subsequent to the initial offering.,/k ,/k ,/k ,/k ,/k ,/k ,/k ,/k ,/k




B. Markets were securities are issued for the first time. ,/k ,/k ,/k ,/k ,/k ,/k ,/k ,/k




C. Markets were securities are issued through a competitive sale. ,/k ,/k ,/k ,/k ,/k ,/k ,/k ,/k




D. Markets where securities are issued through a negotiated sale. ,/k ,/k ,/k ,/k ,/k ,/k ,/k ,/k




4. A special interest group in the U.S. has been lobbying intensely for protectionism through increased tariffs
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and trade restrictions, with the argument that it will save jobs in the industry they represent. What is the most
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likely result if they are successful?
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A. Employees and shareholders of the domestic industry that produce the protective goods will be hurt and the
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nation will benefit.
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B. The overall economy will benefit from trade restrictions and tariffs.
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C. Removing the trade restrictions and tariffs will result in a net economic loss to the overall U.S. economy.
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D. Employees and shareholders of the domestic industry that produce the protected goods will benefit and the
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nation will be hurt.
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5. What do the content and structure of a balance sheet report?
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The assets , liabilities , and equity at a point in time
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6. What is the basis used to compute a company's income tax expense?
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A. Pretax accounting income. ,/k ,/k




B. Taxable income. ,/k




C. Net operating income. ,/k ,/k




D. Taxes payable. ,/k




7. What is the firm’s cash flow from financing, using the data above?
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Net Income ,/k $1000

,Depreciation Expense,/k $300
Change in operating assets
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Change in net PP&E
,/k ,/k ,/k $5000
Change in long-term Liabilities $1000
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, Dividends Paid
,/k $200