WGU C214 Financial Management OA

Trading on the NYSE is executed without a specialist (i.e. a market maker). True or False? Correct Answer: False Stocks and Bonds are two types of financial instruments. True or False? Correct Answer: True When revenue is matched with cost of sales in an Income statement it is called? Correct Answer: Matching principle Basic balance sheet equation is what?. Correct Answer: Equity = Assets - Liabilities Why is the balance sheet known as the permanent statement? Correct Answer: Because the other statements are reset at the end of the fiscal year. How do you calculate the change in retained earnings? Correct Answer: Net income-dividends Sales - Cost of Sales - other expenses = Correct Answer: Operating Income or EBiT