WGU - D366 - PRE ASSESSMENT
CONCEPTUAL PREPARATION FOR OA
EXAM 100% SOLVED
, A financial analyst is required to analyze the financial statements of Alliah Company.
While analyzing, the analyst discovered that the company does not have adequate
current assets to meet its total current liabilities. Thus, the company might face
difficulties in meeting its upcoming payments toward its current liabilities. Which method
did the financial analyst use to make this analysis? - ANSWERSThe financial analyst
calculated various short-term liquidity ratios.
A financial analyst who was analyzing Company P's financial statements concluded that
this year, the company's revenue increased by 20%, gross income by 16%, and net
income by 10%. Last year, the same items increased by 12%, 6%, and 4%,
respectively. Which financial statement analysis tool did the financial analyst use to
conclude? - ANSWERSPercentage change financial statements
A company evaluates the industry's economic conditions using Porter's five forces
model. Using the analysis, the company wishes to identify the vertical competition in the
value chain and its impact on its performance. Which one of Porter's five forces should
the company refer to? - ANSWERSBuyer power
A start-up's chief executive officer (CEO) plans to expand the business by acquisition of
a mature company. The CEO is particularly interested in companies that exhibit superior
sales volume and market share and is willing to accept low profit margins.Which
company meets the CEO's investment criteria based on the framework for strategic
analysis? - ANSWERSA company that sells nondifferentiated products
Corollary Marketing has prepared the common-size balance sheet for the current year
and has determined the following percentages:
Cash and equivalents: 15%
Receivables: 20%
Property, plant, and equipment: 12%
Accumulated depreciation: (5%)
Accounts payable: 9%
How does Corollary Marketing calculate these percentages? - ANSWERSAll items are a
percentage of total assets.
Orange Zest Company specializes in household goods and appliances. In recent years,
the market has become increasingly competitive with the emergence of new entrants. In
light of this, the business decided to continue selling its nondifferentiated items while
taking a smaller profit margin in exchange for increased market share and sales
volume. Which strategy did the company choose to compete in its industry? -
ANSWERSLow-cost leadership strategy
CONCEPTUAL PREPARATION FOR OA
EXAM 100% SOLVED
, A financial analyst is required to analyze the financial statements of Alliah Company.
While analyzing, the analyst discovered that the company does not have adequate
current assets to meet its total current liabilities. Thus, the company might face
difficulties in meeting its upcoming payments toward its current liabilities. Which method
did the financial analyst use to make this analysis? - ANSWERSThe financial analyst
calculated various short-term liquidity ratios.
A financial analyst who was analyzing Company P's financial statements concluded that
this year, the company's revenue increased by 20%, gross income by 16%, and net
income by 10%. Last year, the same items increased by 12%, 6%, and 4%,
respectively. Which financial statement analysis tool did the financial analyst use to
conclude? - ANSWERSPercentage change financial statements
A company evaluates the industry's economic conditions using Porter's five forces
model. Using the analysis, the company wishes to identify the vertical competition in the
value chain and its impact on its performance. Which one of Porter's five forces should
the company refer to? - ANSWERSBuyer power
A start-up's chief executive officer (CEO) plans to expand the business by acquisition of
a mature company. The CEO is particularly interested in companies that exhibit superior
sales volume and market share and is willing to accept low profit margins.Which
company meets the CEO's investment criteria based on the framework for strategic
analysis? - ANSWERSA company that sells nondifferentiated products
Corollary Marketing has prepared the common-size balance sheet for the current year
and has determined the following percentages:
Cash and equivalents: 15%
Receivables: 20%
Property, plant, and equipment: 12%
Accumulated depreciation: (5%)
Accounts payable: 9%
How does Corollary Marketing calculate these percentages? - ANSWERSAll items are a
percentage of total assets.
Orange Zest Company specializes in household goods and appliances. In recent years,
the market has become increasingly competitive with the emergence of new entrants. In
light of this, the business decided to continue selling its nondifferentiated items while
taking a smaller profit margin in exchange for increased market share and sales
volume. Which strategy did the company choose to compete in its industry? -
ANSWERSLow-cost leadership strategy
