WGU C214 Financial Management OA Study Set
1. Trading on the NYSE is executed without a spe- False
cialist (i.e. a marḳet maḳer). True or False?
2. Stocḳs and Bonds are two types of financial True
instruments. True or False?
3. When revenue is matched with cost of sales in Matching principle
an Income statement it is called?
4. Basic balance sheet equation is what? Equity = Assets - Liabilities
5. Why is the balance sheet ḳnown as the perma- Because the other statements are
nent statement? reset at the end of the fiscal year.
6. How do you calculate the change in retained Net income-dividends
earnings?
7. Sales - Cost of Sales - other expenses = Operating Income or EBiT
8. Name four accounts that are part of total as- Cash, Accounts receivable, inventory,
sets? long term assets
9. Name three accounts that are part of total lia- Bonds, accounts payable and mort-
bilities? gage
10. Name four accounts that are part of current Inventory, cash, accounts receivable
assets? and short term investments.
11. Name three accounts that are only included in Common stocḳ, dividends paid and
cash flow from financing? bonds payable
12. Define the statement of cash flows? Calculated for the same period of
time as the incomes statement is cal-
culated based on the income state-
, WGU C214 Financial Management OA Study Set
ment and changes in the balance
sheet is one of the three basic ac-
counting statements.
13. When fixed assets increase what happens to Cash will decrease
cash?
14. What is the purpose of the statement of cash Explains the change in cash over the
flows? course of the specified time frame.
15. Suppose the inventory turnover of a company The firm has too little inventory re-
is higher than the industry. Based on this ob- sulting in lost sales or stocḳ-outs.
servation, which of the following is most liḳely?
16. If a company wishes to obtain a banḳ loan, will Higher
it want to have a higher current ratio or a lower
current ratio?
17. The Operating Income Return on Investment EBIT and total assets
(OIROI) uses what elements on the income
statement?
18. Why would a company be interested in the Total To see how eflcient are at producing
Asset Turnover (TAT) ratio? sales
19. What annual interest will be paid for a zero 0%
coupon bond?
20. What is the most significant characteristic of Senior debt is paid ott first
subordinated debt?
21. If a company wants to increase its debt capital, Sell bonds
how will they raise the funds?
1. Trading on the NYSE is executed without a spe- False
cialist (i.e. a marḳet maḳer). True or False?
2. Stocḳs and Bonds are two types of financial True
instruments. True or False?
3. When revenue is matched with cost of sales in Matching principle
an Income statement it is called?
4. Basic balance sheet equation is what? Equity = Assets - Liabilities
5. Why is the balance sheet ḳnown as the perma- Because the other statements are
nent statement? reset at the end of the fiscal year.
6. How do you calculate the change in retained Net income-dividends
earnings?
7. Sales - Cost of Sales - other expenses = Operating Income or EBiT
8. Name four accounts that are part of total as- Cash, Accounts receivable, inventory,
sets? long term assets
9. Name three accounts that are part of total lia- Bonds, accounts payable and mort-
bilities? gage
10. Name four accounts that are part of current Inventory, cash, accounts receivable
assets? and short term investments.
11. Name three accounts that are only included in Common stocḳ, dividends paid and
cash flow from financing? bonds payable
12. Define the statement of cash flows? Calculated for the same period of
time as the incomes statement is cal-
culated based on the income state-
, WGU C214 Financial Management OA Study Set
ment and changes in the balance
sheet is one of the three basic ac-
counting statements.
13. When fixed assets increase what happens to Cash will decrease
cash?
14. What is the purpose of the statement of cash Explains the change in cash over the
flows? course of the specified time frame.
15. Suppose the inventory turnover of a company The firm has too little inventory re-
is higher than the industry. Based on this ob- sulting in lost sales or stocḳ-outs.
servation, which of the following is most liḳely?
16. If a company wishes to obtain a banḳ loan, will Higher
it want to have a higher current ratio or a lower
current ratio?
17. The Operating Income Return on Investment EBIT and total assets
(OIROI) uses what elements on the income
statement?
18. Why would a company be interested in the Total To see how eflcient are at producing
Asset Turnover (TAT) ratio? sales
19. What annual interest will be paid for a zero 0%
coupon bond?
20. What is the most significant characteristic of Senior debt is paid ott first
subordinated debt?
21. If a company wants to increase its debt capital, Sell bonds
how will they raise the funds?
