1
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WGU C214 Financial Management OA
Study Set Questions and Answers (100%
Correct Answers) Already Graded A+
Trading on the NYSE is executed without a specialist (i.e. a market
maker). True or False? [ANS:] False
Stocks and Bonds are two types of financial instruments. True or
False? [ANS:] True
© 2025 Assignment Expert
When revenue is matched with cost of sales in an Income
statement it is called? [ANS:] Matching principle
Guru01 - Stuvia
Basic balance sheet equation is what? [ANS:] Equity = Assets -
Liabilities
Why is the balance sheet known as the permanent statement?
[ANS:] Because the other statements are reset at the end of the
fiscal year.
How do you calculate the change in retained earnings? [ANS:]
Net income-dividends
Sales - Cost of Sales - other expenses = [ANS:] Operating Income
or EBiT
Name four accounts that are part of total assets? [ANS:] Cash,
Accounts receivable, inventory, long term assets
Name three accounts that are part of total liabilities? [ANS:]
Bonds, accounts payable and mortgage
, 2
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Name four accounts that are part of current assets? [ANS:]
Inventory, cash, accounts receivable and short term investments.
Name three accounts that are only included in cash flow from
financing? [ANS:] Common stock, dividends paid and bonds
payable
Define the statement of cash flows? [ANS:] Calculated for the
same period of time as the incomes statement is calculated
based on the income statement and changes in the balance
sheet is one of the three basic accounting statements.
© 2025 Assignment Expert
When fixed assets increase what happens to cash? [ANS:] Cash
will decrease
Guru01 - Stuvia
What is the purpose of the statement of cash flows? [ANS:]
Explains the change in cash over the course of the specified time
frame.
Suppose the inventory turnover of a company is higher than the
industry. Based on this observation, which of the following is most
likely? [ANS:] The firm has too little inventory resulting in lost sales or
stock-outs.
If a company wishes to obtain a bank loan, will it want to have a
higher current ratio or a lower current ratio? [ANS:] Higher
The Operating Income Return on Investment (OIROI) uses what
elements on the income statement? [ANS:] EBIT and total assets
Why would a company be interested in the Total Asset Turnover
(TAT) ratio? [ANS:] To see how efficient are at producing sales
What annual interest will be paid for a zero coupon bond? [ANS:]
0%
For Expert help and assignment solutions, +254707240657
WGU C214 Financial Management OA
Study Set Questions and Answers (100%
Correct Answers) Already Graded A+
Trading on the NYSE is executed without a specialist (i.e. a market
maker). True or False? [ANS:] False
Stocks and Bonds are two types of financial instruments. True or
False? [ANS:] True
© 2025 Assignment Expert
When revenue is matched with cost of sales in an Income
statement it is called? [ANS:] Matching principle
Guru01 - Stuvia
Basic balance sheet equation is what? [ANS:] Equity = Assets -
Liabilities
Why is the balance sheet known as the permanent statement?
[ANS:] Because the other statements are reset at the end of the
fiscal year.
How do you calculate the change in retained earnings? [ANS:]
Net income-dividends
Sales - Cost of Sales - other expenses = [ANS:] Operating Income
or EBiT
Name four accounts that are part of total assets? [ANS:] Cash,
Accounts receivable, inventory, long term assets
Name three accounts that are part of total liabilities? [ANS:]
Bonds, accounts payable and mortgage
, 2
For Expert help and assignment solutions, +254707240657
Name four accounts that are part of current assets? [ANS:]
Inventory, cash, accounts receivable and short term investments.
Name three accounts that are only included in cash flow from
financing? [ANS:] Common stock, dividends paid and bonds
payable
Define the statement of cash flows? [ANS:] Calculated for the
same period of time as the incomes statement is calculated
based on the income statement and changes in the balance
sheet is one of the three basic accounting statements.
© 2025 Assignment Expert
When fixed assets increase what happens to cash? [ANS:] Cash
will decrease
Guru01 - Stuvia
What is the purpose of the statement of cash flows? [ANS:]
Explains the change in cash over the course of the specified time
frame.
Suppose the inventory turnover of a company is higher than the
industry. Based on this observation, which of the following is most
likely? [ANS:] The firm has too little inventory resulting in lost sales or
stock-outs.
If a company wishes to obtain a bank loan, will it want to have a
higher current ratio or a lower current ratio? [ANS:] Higher
The Operating Income Return on Investment (OIROI) uses what
elements on the income statement? [ANS:] EBIT and total assets
Why would a company be interested in the Total Asset Turnover
(TAT) ratio? [ANS:] To see how efficient are at producing sales
What annual interest will be paid for a zero coupon bond? [ANS:]
0%
