WGU C214 OA Financial Management
Pre Assessment Exam
Financial Management (Western
Governors University)
, WGU C214 OA Financial Management Pre Assessment
Exam
1. How can a private firm appropriately maximize shareholder value?
- By increasing the firm's stock price
- By reducing the firm's labor
- By making decisions that keep the control of the business with the owners-
: ✓✓✓ By making decisions that keep the control of the business with
the owners
2. Why are American regulators focused on international investing in a
global marketplace?
- Because international investing in a global marketplace is the concern
of American investors
- Because an exclusively domestically focused regulatory approach is
still effective
- Because weaving international concerns into domestic policy is cost-
effec- tive
- Because other jurisdictions have the same priorities and solutions as
the United States: ✓✓✓ Because international investing in a global
marketplace is the con- cern of American investors
,3. What is one of the two basic types of financial instruments?
- Checking accounts
- Bonds
- Euros
- Hedge funds: ✓✓✓ Bonds
4. What are the likeliest outcomes if a company outsources the
manufacturing of its products to a foreign country?
Choose 2 answers.
- Consumer prices will decrease.
- Tariffs will decrease.
- Domestic wages will increase.
- Production capacity will decrease.
- Domestic employment will decrease.: ✓✓✓Consumer prices
will decrease. Domestic employment will decrease.
5. What do the content and structure of a balance sheet report?
2 / 22
, - The gains and losses at a point in time
- The revenues and expenses for a period of time
- The assets, liabilities, and equity at a point in time
- The expenses, assets, and liabilities for a period in time: The
assets, liabilities, and equity at a point in time
6. A company reported an increase in accounts receivable of $5,000
during the recent period. Half of this amount is expected to be collected
next period.
How will this change in accounts receivable affect the cash flows from the
operating activities section?
- The change will decrease cash flows from operations by $2,500.
- The change will increase cash flows from operations by $2,500.
- The change will increase cash flows from operations by $5,000.
- The change will decrease cash flows from operations by $5,000.:
The change will decrease cash flows from operations by $5,000.
7. Which statement accurately explains the recognition of revenues and
ex- penses under accounting income and income for tax purposes?
Revenue and expenses recognized must be matched with assets.
Revenue and expenses recognized must be matched with liabilities.
Revenues and expenses may be recognized in one period for
accounting income purposes and in a different period for income tax
purposes.
Pre Assessment Exam
Financial Management (Western
Governors University)
, WGU C214 OA Financial Management Pre Assessment
Exam
1. How can a private firm appropriately maximize shareholder value?
- By increasing the firm's stock price
- By reducing the firm's labor
- By making decisions that keep the control of the business with the owners-
: ✓✓✓ By making decisions that keep the control of the business with
the owners
2. Why are American regulators focused on international investing in a
global marketplace?
- Because international investing in a global marketplace is the concern
of American investors
- Because an exclusively domestically focused regulatory approach is
still effective
- Because weaving international concerns into domestic policy is cost-
effec- tive
- Because other jurisdictions have the same priorities and solutions as
the United States: ✓✓✓ Because international investing in a global
marketplace is the con- cern of American investors
,3. What is one of the two basic types of financial instruments?
- Checking accounts
- Bonds
- Euros
- Hedge funds: ✓✓✓ Bonds
4. What are the likeliest outcomes if a company outsources the
manufacturing of its products to a foreign country?
Choose 2 answers.
- Consumer prices will decrease.
- Tariffs will decrease.
- Domestic wages will increase.
- Production capacity will decrease.
- Domestic employment will decrease.: ✓✓✓Consumer prices
will decrease. Domestic employment will decrease.
5. What do the content and structure of a balance sheet report?
2 / 22
, - The gains and losses at a point in time
- The revenues and expenses for a period of time
- The assets, liabilities, and equity at a point in time
- The expenses, assets, and liabilities for a period in time: The
assets, liabilities, and equity at a point in time
6. A company reported an increase in accounts receivable of $5,000
during the recent period. Half of this amount is expected to be collected
next period.
How will this change in accounts receivable affect the cash flows from the
operating activities section?
- The change will decrease cash flows from operations by $2,500.
- The change will increase cash flows from operations by $2,500.
- The change will increase cash flows from operations by $5,000.
- The change will decrease cash flows from operations by $5,000.:
The change will decrease cash flows from operations by $5,000.
7. Which statement accurately explains the recognition of revenues and
ex- penses under accounting income and income for tax purposes?
Revenue and expenses recognized must be matched with assets.
Revenue and expenses recognized must be matched with liabilities.
Revenues and expenses may be recognized in one period for
accounting income purposes and in a different period for income tax
purposes.
