FINANCIAL MANAGEMENT (C214) - PA | WESTERN
GOVERNOR'S UNIVERSITY | UPDATED 2025
QUESTIONS & ANSWERS.
How can a private firm appropriately maximize shareholder value?
- By increasing the firm's stock price
- By reducing the firm's labor
- By making decisions that keep the control of the business with the owners
Answer - 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 international investing in a global marketplace is the concern of
American investors
- Because an exclusively domestically focused regulatory approach is still
effective
- Because weaving international concerns into domestic policy is cost-effective
,- Because other jurisdictions have the same priorities and solutions as the
United States Answer - Because international investing in a global marketplace
is the concern of American investors
What is one of the two basic types of financial instruments?
- Checking accounts
- Bonds
- Euros
- Hedge funds Answer - Bonds
What are the likeliest outcomes if a company outsources the manufacturing of
its products to a foreign country?
Choose 2 answers.
- Consumer prices will decrease.
- Tariffs will decrease.
- Domestic wages will increase.
- Production capacity will decrease.
- Domestic employment will decrease. Answer - Consumer prices will
decrease.
Domestic employment will decrease.
What do the content and structure of a balance sheet report?
- The gains and losses at a point in time
- The revenues and expenses for a period of time
,- The assets, liabilities, and equity at a point in time
- The expenses, assets, and liabilities for a period in time Answer - The assets,
liabilities, and equity at a point in time
A company reported an increase in accounts receivable of $5,000 during the
recent period. Half of this amount is expected to be collected next period.
How will this change in accounts receivable affect the cash flows from the
operating activities section?
- The change will decrease cash flows from operations by $2,500.
- The change will increase cash flows from operations by $2,500.
- The change will increase cash flows from operations by $5,000.
- The change will decrease cash flows from operations by $5,000. Answer - The
change will decrease cash flows from operations by $5,000.
Which statement accurately explains the recognition of revenues and expenses
under accounting income and income for tax purposes?
Revenue and expenses recognized must be matched with assets.
Revenue and expenses recognized must be matched with liabilities.
Revenues and expenses may be recognized in one period for accounting
income purposes and in a different period for income tax purposes.
Revenues and expenses are always recognized in the same period for
accounting income purposes and income for tax purposes. Answer - Revenues
, and expenses may be recognized in one period for accounting income purposes
and in a different period for income tax purposes.
Selected Data for 20x2 for ABD Inc.
Net Income$ 1,000Depreciation
Expense$ 300
Change in Operating Assets$ 600
Change in Net Property, Plant, and Equipment$ 5,000
Changes in Long-Term Liabilities$ 1,000
Dividends Paid$ 200
What is this firm's cash flow from investments, using the data above and
assuming no asset disposals?
$5,000 inflow
$5,000 outflow
$5,300 inflow
$5,300 outflow Answer - $5,300 outflow
What is the basic equation for a balance sheet?
Revenue + expenses = income
Assets = Liabilities − Equity
Revenue + Assets = Equity
GOVERNOR'S UNIVERSITY | UPDATED 2025
QUESTIONS & ANSWERS.
How can a private firm appropriately maximize shareholder value?
- By increasing the firm's stock price
- By reducing the firm's labor
- By making decisions that keep the control of the business with the owners
Answer - 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 international investing in a global marketplace is the concern of
American investors
- Because an exclusively domestically focused regulatory approach is still
effective
- Because weaving international concerns into domestic policy is cost-effective
,- Because other jurisdictions have the same priorities and solutions as the
United States Answer - Because international investing in a global marketplace
is the concern of American investors
What is one of the two basic types of financial instruments?
- Checking accounts
- Bonds
- Euros
- Hedge funds Answer - Bonds
What are the likeliest outcomes if a company outsources the manufacturing of
its products to a foreign country?
Choose 2 answers.
- Consumer prices will decrease.
- Tariffs will decrease.
- Domestic wages will increase.
- Production capacity will decrease.
- Domestic employment will decrease. Answer - Consumer prices will
decrease.
Domestic employment will decrease.
What do the content and structure of a balance sheet report?
- The gains and losses at a point in time
- The revenues and expenses for a period of time
,- The assets, liabilities, and equity at a point in time
- The expenses, assets, and liabilities for a period in time Answer - The assets,
liabilities, and equity at a point in time
A company reported an increase in accounts receivable of $5,000 during the
recent period. Half of this amount is expected to be collected next period.
How will this change in accounts receivable affect the cash flows from the
operating activities section?
- The change will decrease cash flows from operations by $2,500.
- The change will increase cash flows from operations by $2,500.
- The change will increase cash flows from operations by $5,000.
- The change will decrease cash flows from operations by $5,000. Answer - The
change will decrease cash flows from operations by $5,000.
Which statement accurately explains the recognition of revenues and expenses
under accounting income and income for tax purposes?
Revenue and expenses recognized must be matched with assets.
Revenue and expenses recognized must be matched with liabilities.
Revenues and expenses may be recognized in one period for accounting
income purposes and in a different period for income tax purposes.
Revenues and expenses are always recognized in the same period for
accounting income purposes and income for tax purposes. Answer - Revenues
, and expenses may be recognized in one period for accounting income purposes
and in a different period for income tax purposes.
Selected Data for 20x2 for ABD Inc.
Net Income$ 1,000Depreciation
Expense$ 300
Change in Operating Assets$ 600
Change in Net Property, Plant, and Equipment$ 5,000
Changes in Long-Term Liabilities$ 1,000
Dividends Paid$ 200
What is this firm's cash flow from investments, using the data above and
assuming no asset disposals?
$5,000 inflow
$5,000 outflow
$5,300 inflow
$5,300 outflow Answer - $5,300 outflow
What is the basic equation for a balance sheet?
Revenue + expenses = income
Assets = Liabilities − Equity
Revenue + Assets = Equity
