WGU C214 FINANCIAL ANAGEMENT OA STUDY EXAM QUESTIONS AND VERIFIED SOLUTIONS 2024 GRADED A+.

WGU C214 FINANCIAL ANAGEMENT OA STUDY EXAM QUESTIONS AND VERIFIED SOLUTIONS 2024 GRADED A+. 2 / 14 1. Trading on the NYSE is executed without a specialist (i.e. a market maker). True or False?: False 2. Stocks and Bonds are two types of financial instruments.True or False?: - True 3. When revenue is matched with cost of sales in an Income statement it is called?: Matching principle 4. Basic balance sheet equation is what?: Equity = Assets - Liabilities 5. Why is the balance sheet known as the permanent statement?: Because the other statements are reset at the end of the fiscal year. 6. How do you calculate the change in retained earnings?: Net income-divi- dends 7. Sales - Cost of Sales - other expenses =: Operating Income or EBiT 8. Name four accountsthat are part of total assets?: Cash, Accountsreceivable, inventory, long term assets 9. Name three accounts that are part of total liabilities?: Bonds, accounts payable and mortgage 10. Name four accounts that are part of current assets?: Inventory, cash, ac- counts receivable and short term investments. 11. Name three accounts that are only included in cash flow from financing?- : Common stock, dividends paid and bonds payable 12. Define the statement of cash flows?: Calculated for the same period of time asthe incomes statement is calculated based on the income statement and changes in the balance sheet is one of the three basic accounting statements. 13. When fixed assets increase what happens to cash?: Cash will decrease 14. What is the purpose of the statement of cash flows?: Explains the change in cash over the course of the specified time frame. 15. Suppose the inventory turnover of a company is higher than the industry. Based on this observation, which of the following is most likely?: The firm has too little inventory resulting in lost sales or stock-outs. 16. If a company wishes to obtain a bank loan, will it want to have a higher current ratio or a 3 / 14 lower current ratio?: Higher 17. The Operating Income Return on Investment (OIROI) uses what elements on the income statement?: EBIT and total assets 18. Why would a company be interested in theTotal AssetTurnover (TAT) ratio?: To see how efficient are at producing sales 19. What annual interest will be paid for a zero coupon bond?: 0% 20. What is the most significant characteristic of subordinated debt?: Senior debt is paid off fir