WGU C214 Study guides, Class notes & Summaries

WGU C214-ASSESSMENT: FINANCIAL MANAGEMENT (PVCC 2024 Already Passed 100%) How can a private firm appropriately maximize shareholder value? By making decisions that keep the control of the business with the owners Why are American regulators focused on international investing in a global marketplace? Because American investors are focused on international investing in a global marketplace What is one of the two basic types of financial instruments? Bonds If a company outsources the manuf...

C214 - Financial Management Exam Questions and Answers 100% Pass Accounting - Answer- The business function responsible for creating the historical financial statements. Accounts Payable - Answer- A current liability that represents any money the firm owes suppliers and other firms. Typically the firm does not pay interest on accounts payable. Accounts Receivable (AR) - Answer- A type of current asset which represents any money owed to the firm for services rendered. Accounts Receivable ...

C214 - Financial Management Exam Questions and Answers Trading on the NYSE is executed without a specialist (i.e. a market maker). - Answer- False Accruals - Answer- are expenses a firm owes but hasn't paid yet. (Like wages - the employee has worked, but his check hasn't been cut yet.) Which of the following best describes the guiding principle for revenue recognition within accrual accounting system: - Answer- Revenue is reported when the earnings process is complete A high-quality c...

C214 Financial Management Exam Questions and Answers Finance is a subfield with in - Answer- Economics Which of the following is not an example of firm capital? - Answer- Financial Markets Capital is defined as a - Answer- financial asset Corporate finance is devoted to understanding various types of - Answer- financial instruments Which of the following is an example of firm capital? - Answer- Cash Corporate finance focuses on the decision making by the - Answer- Management What are th...

c214 Financial Management WGU Exam Questions and Answers 100% Pass Trading on the NYSE is executed without a specialist T or F - Answer- False What are 2 types of financial instruments - Answer- Stocks and BondsM When revenue is matched with cost of sales in an income statement it is called? - Answer- matching principle A high quality customer just purchased $500,000 worth of product from your company. The contract calls for immediate delivery of this product with a cash payment of $300,...

C214 Financial Management Concepts Exam Questions and Answers 1. The goal of the corporation is to: a. Maximize profits b. Maximize market share c. Maximize stock price d. Minimize risk - Answer- c. Maximize stock price 2. Risk premium is best described as a. Return on risky securities b. Compensation for risk-taking c. Return on stocks d. Expected return on securities - Answer- b. Compensation for risk-taking 3. What is the relationship between risk and required return? a. The two ...

WGU - C214: Financial Management Exam Questions and Answers If accounts receivable increases, what is the impact on CFO? - Answer- CFO decreases Are actual taxes paid the same as how on the GAAP income statement? - Answer- No. Actual Taxes = IRS Rules Income Statement = GAAP Which decisions require using subjective estimates? - Answer- Economic life of a new asset. If there is a 30% change of a recession, what is the probability of expansion? - Answer- 70% *The sum of probabilities mus...

c214 financial management exam questions and answers intrinsic value - Answer- the value of an asset computed with an economic model. Based on the cash flows generated from the security, intrinsically it is work XX amount Terminal Cash Flow (TCF) - Answer- cash flows that result from winding down a project at the end of its life; does no include final year's differnetial cash flow. EFN - Answer- external financing or funds needed. Another name for DFN bond rating - Answer- a rating assig...