WGU C214 FINANCIAL MANAGEMENT OA STUDY SET NEWEST EXAM
WITH MULTIPLE CHOICE OF QUESTIONS AND CORRECT ANSWERS
ALREADY GRADED A+ AND 100% GUARANTEE PASS (BRAND
NEW!!!!!!!!!)
Trading on the NYSE is executed without a specialist (i.e. a market maker). True
or False? - CORRECT ANSWERS-False
Stocks and Bonds are two types of financial instruments. True or False? -
CORRECT ANSWERS-True
When revenue is matched with cost of sales in an Income statement it is called?
- CORRECT ANSWERS-Matching principle
Basic balance sheet equation is what? - CORRECT ANSWERS-Equity = Assets -
Liabilities
Why is the balance sheet known as the permanent statement? - CORRECT
ANSWERS-Because the other statements are reset at the end of the fiscal year.
How do you calculate the change in retained earnings? - CORRECT
ANSWERS-Net income-dividends
Sales - Cost of Sales - other expenses = - CORRECT ANSWERS-Operating
Income or EBiT
,Name four accounts that are part of total assets? - CORRECT ANSWERS-Cash,
Accounts receivable, inventory, long term assets
Name three accounts that are part of total liabilities? - CORRECT ANSWERS-
Bonds, accounts payable and mortgage
Name four accounts that are part of current assets? - CORRECT ANSWERS-
Inventory, cash, accounts receivable and short term investments.
Name three accounts that are only included in cash flow from financing? -
CORRECT ANSWERS-Common stock, dividends paid and bonds payable
Define the statement of cash flows? - CORRECT ANSWERS-Calculated for the
same period of time as the incomes statement is calculated based on the
income statement and changes in the balance sheet is one of the three basic
accounting statements.
When fixed assets increase what happens to cash? - CORRECT ANSWERS-
Cash will decrease
What is the purpose of the statement of cash flows? - CORRECT ANSWERS-
Explains the change in cash over the course of the specified time frame.
Suppose the inventory turnover of a company is higher than the industry. Based
on this observation, which of the following is most likely? - CORRECT
ANSWERS-The firm has too little inventory resulting in lost sales or stock-outs.
, If a company wishes to obtain a bank loan, will it want to have a higher current
ratio or a lower current ratio? - CORRECT ANSWERS-Higher
The Operating Income Return on Investment (OIROI) uses what elements on the
income statement? - CORRECT ANSWERS-EBIT and total assets
Why would a company be interested in the Total Asset Turnover (TAT) ratio? -
CORRECT ANSWERS-To see how efficient are at producing sales
What annual interest will be paid for a zero coupon bond? - CORRECT
ANSWERS-0%
What is the most significant characteristic of subordinated debt? - CORRECT
ANSWERS-Senior debt is paid off first
If a company wants to increase its debt capital, how will they raise the funds? -
CORRECT ANSWERS-Sell bonds
What is the lowest level investment bond - CORRECT ANSWERS-BBB
What can cause the bond price to fluctuate? - CORRECT ANSWERS-A change
in the bond rating, a change in the financial condition, general change in interest
rates.
What does a company use as security for a bond? - CORRECT ANSWERS-
Credit worthiness
WITH MULTIPLE CHOICE OF QUESTIONS AND CORRECT ANSWERS
ALREADY GRADED A+ AND 100% GUARANTEE PASS (BRAND
NEW!!!!!!!!!)
Trading on the NYSE is executed without a specialist (i.e. a market maker). True
or False? - CORRECT ANSWERS-False
Stocks and Bonds are two types of financial instruments. True or False? -
CORRECT ANSWERS-True
When revenue is matched with cost of sales in an Income statement it is called?
- CORRECT ANSWERS-Matching principle
Basic balance sheet equation is what? - CORRECT ANSWERS-Equity = Assets -
Liabilities
Why is the balance sheet known as the permanent statement? - CORRECT
ANSWERS-Because the other statements are reset at the end of the fiscal year.
How do you calculate the change in retained earnings? - CORRECT
ANSWERS-Net income-dividends
Sales - Cost of Sales - other expenses = - CORRECT ANSWERS-Operating
Income or EBiT
,Name four accounts that are part of total assets? - CORRECT ANSWERS-Cash,
Accounts receivable, inventory, long term assets
Name three accounts that are part of total liabilities? - CORRECT ANSWERS-
Bonds, accounts payable and mortgage
Name four accounts that are part of current assets? - CORRECT ANSWERS-
Inventory, cash, accounts receivable and short term investments.
Name three accounts that are only included in cash flow from financing? -
CORRECT ANSWERS-Common stock, dividends paid and bonds payable
Define the statement of cash flows? - CORRECT ANSWERS-Calculated for the
same period of time as the incomes statement is calculated based on the
income statement and changes in the balance sheet is one of the three basic
accounting statements.
When fixed assets increase what happens to cash? - CORRECT ANSWERS-
Cash will decrease
What is the purpose of the statement of cash flows? - CORRECT ANSWERS-
Explains the change in cash over the course of the specified time frame.
Suppose the inventory turnover of a company is higher than the industry. Based
on this observation, which of the following is most likely? - CORRECT
ANSWERS-The firm has too little inventory resulting in lost sales or stock-outs.
, If a company wishes to obtain a bank loan, will it want to have a higher current
ratio or a lower current ratio? - CORRECT ANSWERS-Higher
The Operating Income Return on Investment (OIROI) uses what elements on the
income statement? - CORRECT ANSWERS-EBIT and total assets
Why would a company be interested in the Total Asset Turnover (TAT) ratio? -
CORRECT ANSWERS-To see how efficient are at producing sales
What annual interest will be paid for a zero coupon bond? - CORRECT
ANSWERS-0%
What is the most significant characteristic of subordinated debt? - CORRECT
ANSWERS-Senior debt is paid off first
If a company wants to increase its debt capital, how will they raise the funds? -
CORRECT ANSWERS-Sell bonds
What is the lowest level investment bond - CORRECT ANSWERS-BBB
What can cause the bond price to fluctuate? - CORRECT ANSWERS-A change
in the bond rating, a change in the financial condition, general change in interest
rates.
What does a company use as security for a bond? - CORRECT ANSWERS-
Credit worthiness
