WGU C214 FINANCIAL MANAGEMENT OA STUDY SET

WGU C214 FINANCIAL MANAGEMENT OA STUDY SET Trading on the NYSE is executed without a specialist (i.e. a market maker). True or False? - CORRECT ANSWER -False Stocks and Bonds are two types of financial instruments. True or False? - CORRECT ANSWER -True When revenue is matched with cost of sales in an Income statement it is called? - CORRECT ANSWER Matching principle Basic balance sheet equation is what? - CORRECT ANSWER -Equity = Assets - Liabilities Why is the balance sheet known as the permanent statement? - CORRECT ANSWER -Because the other statements are reset at the end of the fiscal year. How do you calculate the change in retained earnings? - CORRECT ANSWER -Net income-dividends Sales - Cost of Sales - other expenses = - CORRECT ANSWER -Operating Income or EBiT Name four accounts that are part of total assets? - CORRECT ANSWER -Cash, Accounts receivable, inventory, long term assets Name three accounts that are part of total liabilities? - CORRECT ANSWER -Bonds, accounts payable and mortgage