WGU C214 Financial Management Concepts Prac ce
Exam Western Governors University MBA Concepts
Prac ce Exam for VCC2 NEW!!
The matching principle in accrual accoun ng requires that:
a. Expenses are matched to revenue recogni on.
b. Expenses are matched to the year in which they are incurred
c. Revenues are matched to the year in which they are booked
d. Revenues should be large enough to match expenses
a
The addi on to retained earnings each year is:
a. Net Income
b. Net Income minus dividends
c. Net Income plus dividends
d. Net Income mes the Payout Ra o
b
Net working capital equals:
a. Current assets
b. Current liabili es
c. Current assets minus current liabili es
d. None of the above
c
What does the Sarbanes-Oxley Act require companies to do?
a. Have a board of directors
b. Register all foreign sales
c. Make es mated tax payments
d. Have transparent, accurate financial statements
d
If a company produces and sells a product only in the U.S., what interna onal developments
may affect its sales?
a. Fluctua ng exchange rates
b. Imports of compe ng products
,c. Immigra on policy
d. Infla on in Europe
b
Which is not a reason to calculate WACC?
a. To measure the overall cost of financing
b. Needed to calculate Cash Flow Financing
c. It is the minimum required return for investment projects
d. Measures investors' required return on firm securi es
b
If a firm's goal is to maximize stockholder wealth, which would the firm avoid?
a. Stock buybacks
b. Risky long-term investments
c. Investments with nega ve NPV
d. Transparency in financial statements
c
In which market transac on is the corpora on not involved?
a. Primary Markets
b. Secondary Markets
c. IPO
d. Buy Backs
b
What does Beta measure?
a. The yield on the S&P 500
b. The rela ve riskiness of an individual stock
c. Indicates the market value of the stock
d. Stocks to avoid purchasing
b
Which accoun ng decision uses es mates?
a. Life of a new asset
b. Accounts payable
c. Amor za on schedule for a loan
d. Cost of a new machine
a
, An investment with a term of less than one year is:
a. A current liability
b. A current asset
c. Is in retained earnings
d. Is a long-term liability
b
Which does not affect the required yield on a bond?
a. Riskiness of the issuer
b. Collateraliza on
c. Treasury yields
d. Face Value
d
If the yield of a bond is higher than the coupon rate, what is the price?
a. Premium price
b. Par price
c. Discount price
d. Secondary market price
c
Why would a company buy back outstanding stock?
a. To boost the price of the stock
b. To increase financial leverage
c. Lack of investment opportuni es
d. All of the above
d
Which cash flow statement contains income statement items?
a. CFO
b. CFI
c. CFF
d. None of above
a
Why are accurate sales forecasts important?
a. To determine the appropriate debt/equity ra o
b. To have right amount of produc on resources
Exam Western Governors University MBA Concepts
Prac ce Exam for VCC2 NEW!!
The matching principle in accrual accoun ng requires that:
a. Expenses are matched to revenue recogni on.
b. Expenses are matched to the year in which they are incurred
c. Revenues are matched to the year in which they are booked
d. Revenues should be large enough to match expenses
a
The addi on to retained earnings each year is:
a. Net Income
b. Net Income minus dividends
c. Net Income plus dividends
d. Net Income mes the Payout Ra o
b
Net working capital equals:
a. Current assets
b. Current liabili es
c. Current assets minus current liabili es
d. None of the above
c
What does the Sarbanes-Oxley Act require companies to do?
a. Have a board of directors
b. Register all foreign sales
c. Make es mated tax payments
d. Have transparent, accurate financial statements
d
If a company produces and sells a product only in the U.S., what interna onal developments
may affect its sales?
a. Fluctua ng exchange rates
b. Imports of compe ng products
,c. Immigra on policy
d. Infla on in Europe
b
Which is not a reason to calculate WACC?
a. To measure the overall cost of financing
b. Needed to calculate Cash Flow Financing
c. It is the minimum required return for investment projects
d. Measures investors' required return on firm securi es
b
If a firm's goal is to maximize stockholder wealth, which would the firm avoid?
a. Stock buybacks
b. Risky long-term investments
c. Investments with nega ve NPV
d. Transparency in financial statements
c
In which market transac on is the corpora on not involved?
a. Primary Markets
b. Secondary Markets
c. IPO
d. Buy Backs
b
What does Beta measure?
a. The yield on the S&P 500
b. The rela ve riskiness of an individual stock
c. Indicates the market value of the stock
d. Stocks to avoid purchasing
b
Which accoun ng decision uses es mates?
a. Life of a new asset
b. Accounts payable
c. Amor za on schedule for a loan
d. Cost of a new machine
a
, An investment with a term of less than one year is:
a. A current liability
b. A current asset
c. Is in retained earnings
d. Is a long-term liability
b
Which does not affect the required yield on a bond?
a. Riskiness of the issuer
b. Collateraliza on
c. Treasury yields
d. Face Value
d
If the yield of a bond is higher than the coupon rate, what is the price?
a. Premium price
b. Par price
c. Discount price
d. Secondary market price
c
Why would a company buy back outstanding stock?
a. To boost the price of the stock
b. To increase financial leverage
c. Lack of investment opportuni es
d. All of the above
d
Which cash flow statement contains income statement items?
a. CFO
b. CFI
c. CFF
d. None of above
a
Why are accurate sales forecasts important?
a. To determine the appropriate debt/equity ra o
b. To have right amount of produc on resources
