WGU C201/WGU C201 BUSINESS ACCUMEN EXAM REAL AND
ACTUAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS
A NEW UPDATED VERSION LATEST 2024(VERIFIED
ANSWERS)|ALREADY GRADED A+ BRAND NEW!!!
In which type of security should a business invest its excess cash in anticipation of
paying off the current year's tax liability? - ANSWER-Commercial paper
Which role does the underwriter play in financing business operations when using
the capital market to sell securities to the public? - ANSWER-It insures the value
of the security to the investor
Why should a manager use financial controls in a firm's financial plan? - ANSWER-
to determine the accuracy of forecasted revenues, costs, and expenses
What does a CFO use in financial planning to determine the expected level of
revenue for future periods? - ANSWER-Sales forecast plus non-sales revenue
How did the Dodd-Frank Wall Street Reform and Consumer Protection Act impact
retailers? - ANSWER-capped the debit card fee at 21 cents
Which two activities are prohibited by insider trading laws and should be avoided
by a firm's employees? Choose 2 answers - ANSWER-Selling company stock
,because a co-worker told the employee the company's new drug is failing in
clinical trial, buying stock in the public company for which the employee works
based on a conversation the employee overheard at a cocktail party between two
of the company's executives.
Which two risks does a firm face by funding the purchase of long-term assets with
short-term funding sources? Choose 2 ansers - ANSWER-Volatility of interest
rates, frequent renewals
Which funding source should a firm use if it wishes to secure long-term financing
while retaining all of its equity? - ANSWER-private equity fund
Which three characteristics make commercial paper a low-risk, attractive source
of short-term funding for a business? - ANSWER-It has a maturity that ranges
between 1 and 270 days, it carries interest rates that are 1 to 2 percent less than
bank loans, it can make large amounts of money available
What should a firm do to manage the risk of using leverage when exploring long-
term funding options? - ANSWER-Ensure that earnings remain larger than
interests payments
Which financial statement should an investor examine to identify the liabilities of
a firm? - ANSWER-The balance sheet
A company wishes to determine if it should fund a project with bonds or equity.
Which business concept would it most likely use to assist in the decision? -
ANSWER-leverage
, Which calculation determines a firm's return on equity? - ANSWER-net income
divided by average equity
Why should companies that are conservative investors with liquidity concerns
invest their excess cash in money market funds? - ANSWER-it converts easily to
cash
Which regulatory relationship with the Securities and Exchange Commission (SEC)
historically has acted to prohibit the U.S. from adopting the International
Financial Reporting Standards (IFRS)? - ANSWER-FASB requires companies to
comply with GAAP that differ from IFRS
Which users of financial statements use the financial statements to evaluate
operations of the firm and to make investment decisions? - ANSWER-owners and
creditors
What is considered the heart of any information system? - ANSWER-The Database
Which type of information system should be accessed by the vice president of
sales for a national department store chain who wants to see the previous day's
sales receipts? - ANSWER-A transaction processing system
How does a virtual private network contribute to a firm's workforce productivity?
- ANSWER-employers are enabled to work remotely with secure connectivity to
the corporate network via the internet
What are three ways cloud computing services enhance company productivity?
Choose 3 answers - ANSWER-Through better resource utilization, through
ACTUAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS
A NEW UPDATED VERSION LATEST 2024(VERIFIED
ANSWERS)|ALREADY GRADED A+ BRAND NEW!!!
In which type of security should a business invest its excess cash in anticipation of
paying off the current year's tax liability? - ANSWER-Commercial paper
Which role does the underwriter play in financing business operations when using
the capital market to sell securities to the public? - ANSWER-It insures the value
of the security to the investor
Why should a manager use financial controls in a firm's financial plan? - ANSWER-
to determine the accuracy of forecasted revenues, costs, and expenses
What does a CFO use in financial planning to determine the expected level of
revenue for future periods? - ANSWER-Sales forecast plus non-sales revenue
How did the Dodd-Frank Wall Street Reform and Consumer Protection Act impact
retailers? - ANSWER-capped the debit card fee at 21 cents
Which two activities are prohibited by insider trading laws and should be avoided
by a firm's employees? Choose 2 answers - ANSWER-Selling company stock
,because a co-worker told the employee the company's new drug is failing in
clinical trial, buying stock in the public company for which the employee works
based on a conversation the employee overheard at a cocktail party between two
of the company's executives.
Which two risks does a firm face by funding the purchase of long-term assets with
short-term funding sources? Choose 2 ansers - ANSWER-Volatility of interest
rates, frequent renewals
Which funding source should a firm use if it wishes to secure long-term financing
while retaining all of its equity? - ANSWER-private equity fund
Which three characteristics make commercial paper a low-risk, attractive source
of short-term funding for a business? - ANSWER-It has a maturity that ranges
between 1 and 270 days, it carries interest rates that are 1 to 2 percent less than
bank loans, it can make large amounts of money available
What should a firm do to manage the risk of using leverage when exploring long-
term funding options? - ANSWER-Ensure that earnings remain larger than
interests payments
Which financial statement should an investor examine to identify the liabilities of
a firm? - ANSWER-The balance sheet
A company wishes to determine if it should fund a project with bonds or equity.
Which business concept would it most likely use to assist in the decision? -
ANSWER-leverage
, Which calculation determines a firm's return on equity? - ANSWER-net income
divided by average equity
Why should companies that are conservative investors with liquidity concerns
invest their excess cash in money market funds? - ANSWER-it converts easily to
cash
Which regulatory relationship with the Securities and Exchange Commission (SEC)
historically has acted to prohibit the U.S. from adopting the International
Financial Reporting Standards (IFRS)? - ANSWER-FASB requires companies to
comply with GAAP that differ from IFRS
Which users of financial statements use the financial statements to evaluate
operations of the firm and to make investment decisions? - ANSWER-owners and
creditors
What is considered the heart of any information system? - ANSWER-The Database
Which type of information system should be accessed by the vice president of
sales for a national department store chain who wants to see the previous day's
sales receipts? - ANSWER-A transaction processing system
How does a virtual private network contribute to a firm's workforce productivity?
- ANSWER-employers are enabled to work remotely with secure connectivity to
the corporate network via the internet
What are three ways cloud computing services enhance company productivity?
Choose 3 answers - ANSWER-Through better resource utilization, through
