WGU C214 Financial Management
Objective Assessment Exam
Questions and Answers (Verified Answers)
1. The stock price of a company increases and the market is deemed
efficient. What assumption can be made?: //
ANS A new, patented, product was introduced to the market. //////
2. 2. Which statement is true about how the global market affects the U.S.: -
///
ANS Foreign investors and fund managers make decisions based on
financial reporting standards developed and financial statements
audited overseas./////////
3. 3. What are secondary markets?:
ANS Markets where securities are traded subsequent to the initial
offering. //////
4. A special interest group in the U.S. has been lobbying intensely for
protec- tionism through increased tariffs and trade restrictions, with the
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, argument that it will save jobs in the industry they represent. What is the
most likely result if they are successful?: ANS A. Employees and
shareholders of the domestic industry that produce the protective
goods will be hurt and the nation will benefit.
5. 5. What do the content and structure of a balance sheet report
ANS?: the assets, liabilities, and equity at a point in time
6. 6. What is the basis used to compute a company's income tax expense?:
-
//////
ANS Taxes payable.//////////
7. 7. What is the firm's cash flow from financing, using the data
above? Net Income $1000
Depreciation Expense $300
Change in operating assets $600
Change in net PP&E $5000
Change in long-term Liabilities $1000
Dividends Paid $200: /////
ANS $800 inflow ////////
8. A company reported an increase in accounts payable of $2000 for the
current year. Half of this amount is expected to be paid next period. How
will this change in accounts payable be reported on the statement of
cash flows?: /////////////
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Objective Assessment Exam
Questions and Answers (Verified Answers)
1. The stock price of a company increases and the market is deemed
efficient. What assumption can be made?: //
ANS A new, patented, product was introduced to the market. //////
2. 2. Which statement is true about how the global market affects the U.S.: -
///
ANS Foreign investors and fund managers make decisions based on
financial reporting standards developed and financial statements
audited overseas./////////
3. 3. What are secondary markets?:
ANS Markets where securities are traded subsequent to the initial
offering. //////
4. A special interest group in the U.S. has been lobbying intensely for
protec- tionism through increased tariffs and trade restrictions, with the
1/6
, argument that it will save jobs in the industry they represent. What is the
most likely result if they are successful?: ANS A. Employees and
shareholders of the domestic industry that produce the protective
goods will be hurt and the nation will benefit.
5. 5. What do the content and structure of a balance sheet report
ANS?: the assets, liabilities, and equity at a point in time
6. 6. What is the basis used to compute a company's income tax expense?:
-
//////
ANS Taxes payable.//////////
7. 7. What is the firm's cash flow from financing, using the data
above? Net Income $1000
Depreciation Expense $300
Change in operating assets $600
Change in net PP&E $5000
Change in long-term Liabilities $1000
Dividends Paid $200: /////
ANS $800 inflow ////////
8. A company reported an increase in accounts payable of $2000 for the
current year. Half of this amount is expected to be paid next period. How
will this change in accounts payable be reported on the statement of
cash flows?: /////////////
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