WGU C214 Multiple Attempt Study Guide Exam Questions With Complete Solutions

What standards are used to help US investors understand and compare foreign financial statements to domestic financial statements? - ANSWER-International Financial Reporting Standards When a company is optimizing its resources and maintaining or improving productivity, they are engaging in what hypothesis - ANSWER-Efficient Market Hypothesis What is the basic type of negotiable debt? - ANSWER-Bonds What is the characteristic of a stock sold in the secondary markets? - ANSWER-Stocks sold in the secondary markets are traded after the initial offering. If a company is engaged in lobbying for tariffs and trade restrictions, if they are successful, what are the two principal impacts? - ANSWER-Protection for the lobbyist and higher prices for the consumer pre reduced competition. Describe what an income statement is in one sentence? - ANSWER-It covers a period of time and starts with sales, takes out expenses, and ends with net income. What is the difference between taxable income and accounting income? - ANSWER-Accounting income is reported as net income on the income statement whereas Taxable income is used to determine the amount of tax a firm must pay. Net Income 15,000 Depreciation Exp 2,000 Change in Operating Assets 1,200 Change in PP&E 2,000