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Newest Exam / Just Released!! WGU D076 - PreAssessment
Which principle of ratio analysis means that ratios are open for
analyst interpretation, are not governed by rules, and allow
creativity to work according to a particular company or asset? -
ANSWER-Flexibility
As an active investor, Maria is analyzing her portfolio to decide
if there are any
stocks she should remove from her pool of financial securities.
A company she
has invested in, Quiet Flag Industries, just released its
annual report.
Which kind of method should Maria use to see if the company
has improved? -
ANSWER-Trend
Analysis
Which type of ratios are banks and lenders most concerned
about? - ANSWER-
Liquidity
, Which ratio helps an analyst evaluate whether a company can
cover its short
term obligations? - ANSWER-
Current Ratio
An investment analyst is concerned about a construction
company's ability to sell its inventory to meet current
obligations, because much of the inventory(commercial
buildings) it builds and sells takes longer than a year to
construct.
Which ratio should this analyst use to consider the effect of the
firm's inventory on the firm's ability to meet current
obligations? - ANSWER-Quick Ratio
An employee was recently hired as a financial analyst and
asked to create a cash budget for the employee's division for
the next year.
Which component should the employee exclude from the
budget? – ANSWER-Purchase of equipment that will be bought
in three years
What are the benefits of using the traditional envelope method
to track cash flows? - ANSWER-It is simple and helps ensure
that users do not spend more than the cash they have
available.
A company calculated variances of a budget and actual cash
flows that indicate