WGU C214 OA Financial Management Questions

The stock price of a company increases and the market is deemed efficient What assumption can be made ? - A new , patented , product was introduced to the market Which statement is true about how the global market affects the U.S. - Foreign investors and fund managers make decisions based on financial reporting standards financial statements audited overseas . What are secondary markets ? - Markets where securities are traded subsequent to the initial offering . A special interest group in the U.S. has been lobbying intensely for protectionism through increased tariffs and trade restrictions , with the argument that it will save jobs in the industry they represent . What is the most likely result if they are successful ? - Employees and shareholders of the domestic industry that produce the protected goods will benefit and the nation will be hurt . What do the content and structure of a balance sheet report ? - The assets , liabilities , and equity at a point in time What is the basis used to compute a company's income tax expense ? - Taxes payable A company reported an increase in accounts payable of $ 2000 for the current year . Half of this amount is expected to be paid next period . How will this change in accounts payable be reported on the statement of cash flows ? - The change will increase cash flow from operations by $ 2000 A company's trial balance shows $ 900 in long - term debt . On which financial statement should this be shown ? - The balance sheet What do cash flows from financing activities generally relate to ? - A firms ' debt and equity transactions What is true about the cash flow from the operating activities section of the statement of cash flows ? - Increases in current liability accounts represents an inflow of cash and should be added to net income An analyst is comparing the ratios of two firms and needs to address accounting differences . What would be considered an accounting difference between the two firms ? - The firms use different inventory methods Firms A and B are in the same industry . For the year 2013 , Firm A has a gross margin of .45 and Firm B has a gross margin of .36 . Which conclusion would an analyst draw when comparing Firm A to Firm B ? - Firm A has a more efficient production process What is an example of an estimate used in recording transactions ? - Deciding the salvage value of fixed asset when calculating depreciation expense What is a subordinated debenture ? - A bond that has a lower claim to the assets of the firm in the event of liquidation At what will the bond sell If the coupon rate is higher than the market rate of return ? - At a premium Which securities are issued by the U.S. Federal government and are taxable at the federal level ? - Treasury bonds