WGU C214 Pre-Assement
Study online at https://quizlet.com/_510r5z
1. How can a private firm appropriately maximize share- By making decisions that
holder value? keep the control of the
business with the owners
2. Why are American regulators focused on international Because international in-
investing in a global marketplace? vesting in a global market-
place is the concern of
American investors
3. What is one of the two basic types of financial instru- Bonds
ments?
4. If a company outsources the manufacturing of its Consumer prices will de-
products to a foreign country, what are the likeliest crease and Domestic em-
outcomes? ployment will decrease.
5. What is true about the content and structure of a bal- It reports the assets, liabil-
ance sheet? ities, and equity at a point
in time.
6. A company reported an increase in accounts receiv- The change will decrease
able of $5,000 during the recent period. Half of this cash flows from operations
amount is expected to be collected next period. by $5,000.
How will this change in accounts receivable affect the
cash flows from the operating activities section?
7. Which statement accurately explains the recognition Revenues and expenses
of revenues and expenses under accounting income may be recognized in one
and income for tax purposes? period for accounting in-
come purposes and in a
different period for in-
come tax purposes.
, WGU C214 Pre-Assement
Study online at https://quizlet.com/_510r5z
8. Selected Data for 20x2 for ABD Inc. $5,300 outflow
Netincome $ 1,000
Depreciation expense $ 300
Change in operating assets $ 600
Change in net property, plant, and equipment$ 5,000
Changes in long-term liabilities $ 1,000
Dividends paid $ 200
What is the firm's cash flow from investments, using
the data above and assuming no asset disposals?
9. What is the basic equation for a balance sheet? Assets = Liabilities + Equity
10. What do cash flows from investing activities generally A firm's purchase and sale
relate to? of long-term assets
11. Which transaction is reflected in cash flow from oper- Cash sales to customers
ating activities?
12. What does free cash flow represent? Cash available for distribu-
tion after funding required
reinvestment
13. An analyst is comparing the ratios of two firms and The firms have different
needs to address timing differences. What would be fiscal years.
considered an example of a timing difference between
the two firms?
14. A company's year-end balance sheetfor 2013 shows 4.0
the following:
Accounts receivable: $900
Inventory: $1200
Fixed assets: $1000
Study online at https://quizlet.com/_510r5z
1. How can a private firm appropriately maximize share- By making decisions that
holder value? keep the control of the
business with the owners
2. Why are American regulators focused on international Because international in-
investing in a global marketplace? vesting in a global market-
place is the concern of
American investors
3. What is one of the two basic types of financial instru- Bonds
ments?
4. If a company outsources the manufacturing of its Consumer prices will de-
products to a foreign country, what are the likeliest crease and Domestic em-
outcomes? ployment will decrease.
5. What is true about the content and structure of a bal- It reports the assets, liabil-
ance sheet? ities, and equity at a point
in time.
6. A company reported an increase in accounts receiv- The change will decrease
able of $5,000 during the recent period. Half of this cash flows from operations
amount is expected to be collected next period. by $5,000.
How will this change in accounts receivable affect the
cash flows from the operating activities section?
7. Which statement accurately explains the recognition Revenues and expenses
of revenues and expenses under accounting income may be recognized in one
and income for tax purposes? period for accounting in-
come purposes and in a
different period for in-
come tax purposes.
, WGU C214 Pre-Assement
Study online at https://quizlet.com/_510r5z
8. Selected Data for 20x2 for ABD Inc. $5,300 outflow
Netincome $ 1,000
Depreciation expense $ 300
Change in operating assets $ 600
Change in net property, plant, and equipment$ 5,000
Changes in long-term liabilities $ 1,000
Dividends paid $ 200
What is the firm's cash flow from investments, using
the data above and assuming no asset disposals?
9. What is the basic equation for a balance sheet? Assets = Liabilities + Equity
10. What do cash flows from investing activities generally A firm's purchase and sale
relate to? of long-term assets
11. Which transaction is reflected in cash flow from oper- Cash sales to customers
ating activities?
12. What does free cash flow represent? Cash available for distribu-
tion after funding required
reinvestment
13. An analyst is comparing the ratios of two firms and The firms have different
needs to address timing differences. What would be fiscal years.
considered an example of a timing difference between
the two firms?
14. A company's year-end balance sheetfor 2013 shows 4.0
the following:
Accounts receivable: $900
Inventory: $1200
Fixed assets: $1000
