WGU - C214 Financial Management - Final Exam Questions & Answers MS

Statement of Cash Flows - ANSWER-Shows the change in cash balance for a period of time. Focuses only on items where cash is received, or cash is paid. Cash Flow from Operating Activities (CFO) - ANSWER-Cash flow that a company generates as a result of day-to-day business operations. Deals with Current Assets and Current Liabilities. Cash Flow from Investing Activities (CFI) - ANSWER-Cash flow that is generated from investments in long term assets. Cash Flow from Financing Activities (CFF) - ANSWER-Cash flow that is used to fund the company. Cash flow that is generated from financing the business. Includes Debt & Equity. How does an increase in Accounts receivable impact CFO? - ANSWER-An Increase in Accounts receivable will decrease CFO How does an increase in Accounts payable impact CFO? - ANSWER-An Increase in Accounts Payable will increase CFO What financial statement is prepared at a point in time - ANSWER-Balance Sheet What financial statements are prepared for a period of time? - ANSWER-· Income Statement · Retained Earnings Statement · Statement of Cash Flows Define Efficient Frontier - ANSWER-Maximizes expected return for a given level of risk