WGU C214 FINANCIAL MANAGEMENT
ACTUAL QUESTIONS WITH VERIFIED
SOLUTIONS
◉ What is the heartbeat of a business.
Answer: The financial statements
◉ Income Statement.
Answer: summarizes a firm's revenues and expenses over a given
period of time
◉ Finance vs accounting.
Answer: We care about cash and give them stocks to try and win
investors
◉ Statement of Cash Flows.
Answer: reports the impact of a firm's activities on cash flows over a
given period of time
◉ statement of stockholders' equity.
Answer: Shows how much of the firms earnings were retained
rather than paid out as dividends.
,◉ Why study financial statements?.
Answer: 1. Assess current performance
2. Monitor and control operations
3. Plan and forecast future performance
◉ Overview of D'Leon Inc.
Answer: •snack food company that went under
•expansion results have been unsatisfactory
•cash position weak, suppliers being paid late, bank threatening to
cut off credit
◉ What is apart of the annual report ?.
Answer: Balance sheet, income statement, statement of cash flows,
statement of stockholders equity
◉ What is apart of the balance sheet?.
Answer: Total liabilities, total shareholder equity, total assets,
current assets, fixed assets, current liabilities, long-term liabilities
◉ Total Liabilities.
Answer: represent the total amount of money the firm owes its
creditors
, ◉ Total Shareholder's Equity.
Answer: refers to the difference in the value of the firm's total assets
and the firm's total liabilities
◉ Total assets.
Answer: sum of total shareholders' equity and total liabilities,
represents the resources owned by the firm
◉ Current assets.
Answer: Consists of firms cash plus other assets the firm excepts to
convert to cash within 12 months or less, ex: receivables and
inventory
◉ Fixed assets.
Answer: are assets that the firm does not expect to sell within one
year. Ex: plant, equipment and land
◉ Current Liabilities.
Answer: Represent the amount that the firm owes to creditors that
must be repaid within a period of 12 months or less. Ex: accounts
payable, notes payable
◉ long-term liabilities.
ACTUAL QUESTIONS WITH VERIFIED
SOLUTIONS
◉ What is the heartbeat of a business.
Answer: The financial statements
◉ Income Statement.
Answer: summarizes a firm's revenues and expenses over a given
period of time
◉ Finance vs accounting.
Answer: We care about cash and give them stocks to try and win
investors
◉ Statement of Cash Flows.
Answer: reports the impact of a firm's activities on cash flows over a
given period of time
◉ statement of stockholders' equity.
Answer: Shows how much of the firms earnings were retained
rather than paid out as dividends.
,◉ Why study financial statements?.
Answer: 1. Assess current performance
2. Monitor and control operations
3. Plan and forecast future performance
◉ Overview of D'Leon Inc.
Answer: •snack food company that went under
•expansion results have been unsatisfactory
•cash position weak, suppliers being paid late, bank threatening to
cut off credit
◉ What is apart of the annual report ?.
Answer: Balance sheet, income statement, statement of cash flows,
statement of stockholders equity
◉ What is apart of the balance sheet?.
Answer: Total liabilities, total shareholder equity, total assets,
current assets, fixed assets, current liabilities, long-term liabilities
◉ Total Liabilities.
Answer: represent the total amount of money the firm owes its
creditors
, ◉ Total Shareholder's Equity.
Answer: refers to the difference in the value of the firm's total assets
and the firm's total liabilities
◉ Total assets.
Answer: sum of total shareholders' equity and total liabilities,
represents the resources owned by the firm
◉ Current assets.
Answer: Consists of firms cash plus other assets the firm excepts to
convert to cash within 12 months or less, ex: receivables and
inventory
◉ Fixed assets.
Answer: are assets that the firm does not expect to sell within one
year. Ex: plant, equipment and land
◉ Current Liabilities.
Answer: Represent the amount that the firm owes to creditors that
must be repaid within a period of 12 months or less. Ex: accounts
payable, notes payable
◉ long-term liabilities.
