:WGU Principles of Finance C708 Pre-Assessment VERY CORRECT

1. Corporations establish goals in areas including finance, diversity, and social responsibility. Match the corporate goal with the area that it addresses. Answer options may be used more than once or not at all. Select your answers from the pulldown list. Correct Answer Answer Choices Environmental goal Create zero waste Diversity goal Promote women and minorities Financial goal Make a profitable investment for the company Financial goal Switch to a freight company that provides a high volume discount 2. An analysis of a potential purchase of a new piece of equipment has been completed. The analysis included a review of the initial cost of the equipment, annual operating expenses, and the value of the expected increased production adjusted for the time value of money over the life of the equipment. Place the investments in the order they should be selected based on their valuation (from highest to lowest value). Select your answers from the pull-down list. Correct Answer Answer Choices 2 Total costs of $700,000 and expected income $850,000 =1,550,000 3 Total costs of $500,000 and expected income of $700,000 = 1,200,000 1 Total costs of $700,000 and expected income $875,000 = 1,575,000 4 Total costs of $500,000 and expected income $600,000 = 1,100,000 A=L+E Assets (whether permanent or liquid) are financed through liability (debt) or equity (capital from owner/investors). Therefore, you should always see the same dollar amount for both sides. (Remember, ALE makes you lose your BALANCE.) 3. Classify each item as to whether it has or lacks a fundamental influence on valuation. Answer options may be used more than once or not at all. Select your answers from the pulldown list. Correct Answer Answer Choices Fundamental influence------------- Opportunity cost Fundamental influence -------------- Cash flow Not a fundamental influence-------- Taxable income Not a fundamental influence--------- Revenue recognition