WGU C214 Financial Management OA Study Set Questions
Answers Solved By Expert Latest Update 2023 Absolute A+ Top
Ranked
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
Answers Solved By Expert Latest Update 2023 Absolute A+ Top
Ranked
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
