WGU D775 INTRO TO BUSINESS FINANCE
ACTUAL TEST PAPER GRADED A+
QUESTIONS
◉ Company B locations
Answer: Company B operates 10 locations.
◉ High current ratio and low cash ratio
Answer: A situation where a company should improve liquidity
through faster collection of receivables.
◉ Seasonal sales period
Answer: The busiest sales season for retailers is between
November 1st and December 31st.
◉ Specialty items in inventory
Answer: Carrying more unique or one-of-a-kind items to increase
inventory turnover.
◉ Raising prices on slow inventory
Answer: A strategy to cover costs associated with unsold
inventory.
◉ Profit margin
, Answer: A measure of a company's profitability, calculated as net
income divided by revenue.
◉ Total asset turnover
Answer: A financial ratio that measures the efficiency of a
company's use of its assets in generating sales revenue.
◉ Quick ratio
Answer: A liquidity ratio that measures a company's ability to
meet its short-term obligations with its most liquid assets.
◉ Return on equity (ROE)
Answer: A measure of financial performance calculated by
dividing net income by shareholders' equity.
◉ Opportunity cost
Answer: The loss of potential gain from other alternatives when
one alternative is chosen.
◉ Present value
Answer: The current value of a future sum of money or stream of
cash flows given a specified rate of return.
◉ Future value
ACTUAL TEST PAPER GRADED A+
QUESTIONS
◉ Company B locations
Answer: Company B operates 10 locations.
◉ High current ratio and low cash ratio
Answer: A situation where a company should improve liquidity
through faster collection of receivables.
◉ Seasonal sales period
Answer: The busiest sales season for retailers is between
November 1st and December 31st.
◉ Specialty items in inventory
Answer: Carrying more unique or one-of-a-kind items to increase
inventory turnover.
◉ Raising prices on slow inventory
Answer: A strategy to cover costs associated with unsold
inventory.
◉ Profit margin
, Answer: A measure of a company's profitability, calculated as net
income divided by revenue.
◉ Total asset turnover
Answer: A financial ratio that measures the efficiency of a
company's use of its assets in generating sales revenue.
◉ Quick ratio
Answer: A liquidity ratio that measures a company's ability to
meet its short-term obligations with its most liquid assets.
◉ Return on equity (ROE)
Answer: A measure of financial performance calculated by
dividing net income by shareholders' equity.
◉ Opportunity cost
Answer: The loss of potential gain from other alternatives when
one alternative is chosen.
◉ Present value
Answer: The current value of a future sum of money or stream of
cash flows given a specified rate of return.
◉ Future value
