WGU C214 Pre-Assement All Possible Questions and Answers with complete solution

How can a private firm appropriately maximize shareholder value? - Answer-By making decisions that keep the control of the business with the owners Why are American regulators focused on international investing in a global marketplace? - AnswerBecause international investing in a global marketplace is the concern of American investors What is one of the two basic types of financial instruments? - Answer-Bonds If a company outsources the manufacturing of its products to a foreign country, what are the likeliest outcomes? - Answer-Consumer prices will decrease and Domestic employment will decrease. What is true about the content and structure of a balance sheet? - Answer-It reports the assets, liabilities, and equity at a point in time. A company reported an increase in accounts receivable of $5,000 during the recent period. Half of this amount is expected to be collected next period. How will this change in accounts receivable affect the cash flows from the operating activities section? - Answer-The change will decrease cash flows from operations by $5,000. Which statement accurately explains the recognition of revenues and expenses under accounting income and income for tax purposes? - Answer-Revenues and expenses may be recognized in one period for accounting income purposes and in a different period for income tax purposes. Selected Data for 20x2 for ABD Inc. Netincome $ 1,000 Depreciation expense $ 300 Change in operating assets $ 600Change in net property, plant, and equipment$ 5,000 Changes in long-term liabilities $ 1,000 Dividends paid $ 200 What is the firm's cash flow from investments, using the data above and assuming no asset disposals? - Answer-$5,300 outflow What is the basic equation for a balance sheet? - Answer-Assets = Liabilities + Equity What do cash flows from investing activities generally relate to? - Answer-A firm's purchase and sale of long-term assets Which transaction is reflected in cash flow from operating activities? - Answer-Cash sales to customers