C214 OA 2023

C214 OA 2023  Thestock price of a companyincreases and the market is deemed efficient. What assumption can be made?A. A new, patented, product was introduced to the market. B. New machinery was purchased with a useful lifeof 20 years. C. Management isoptimizing itsresources and operating efficiently. D. Management hired new employees and invested in a training program.  Which statement istrue about how the global market affectsthe U.S. A. A bad optionstradeexecuted by a foreign subsidiaryof a Wall Street bank will affect layoffsoverseas. B. A Bad derivativestradeexecuted by a foreign subsidiaryof a Wall Street bank will affect layoffsoverseas. C. American investors and fund managers make decisions based on financial reporting standards developed andfinancial statements audited overseas. D. Foreign investors and fund managers make decisions based on financial reporting standards developed andfinancial statements audited overseas.  What aresecondary markets? A. Markets wheresecurities aretraded subsequent totheinitialoffering. B. Marketsweresecurities areissued for thefirst time. C. Marketsweresecurities areissued through a competitivesale. D. Markets wheresecurities areissued through a negotiated sale.  A special interest group in the U.S. has been lobbying intensely for protectionism through increased tariffs and trade restrictions, with the argument that it will savejobsin theindustrytheyrepresent. What isthe most likelyresult if they are successful? A. Employees and shareholdersof the domesticindustrythat producethe protective goods will be hurt and thenation will benefit. B. Theoveralleconomy will benefit fromtraderestrictions and tariffs. C. Removing thetraderestrictions and tariffs will result in a neteconomiclosstotheoverall U.S.economy. D. Employees and shareholdersof the domesticindustry that produce the protected goods will benefit and thenation will be hurt.  What dothecontent and structure of a balancesheetreport? The assets , liabilities , and equity at a point in time  What isthe basis used tocompute a company'sincometaxexpense? A. Pretax accounting income. B. Taxableincome. C. Netoperating income.D. Taxes payable.  What isthefirm’scash flow from financing, using the data above? Net Income $1000 Depreciation Expense $300 Changein operating assets $600 Changein net PP&E $5000 Changein long-term Liabilities $1000 Dividends Paid $200 A. $200 outflow B. $800 outflowC. $800 inflow D. $1,000 inflow  A companyreported an increasein accounts payableof $2000 for thecurrentyear. Halfof this amount isexpected to be paid next period. How will thischangein accounts payable bereported on thestatementofcash flows? A. Thechange will increasecash flow from operations by $1000 B. Thechange will decreasecash flowsfrom operations by $2,000 C. Thechange will decreasecash flowsfrom operations by $1000D. Thechange will increasecash flow from operations by $2000  A company'strial balanceshows $900 in long-term debt. On which financial statementshould this beshown?E. The balance sheet  What docash flowsfrom financing activities generallyrelateto? A. A firm's purchase and saleof long-term assets B. A firm's non-cash transactions C. A firms' debt and equitytransactions D. A firmssaleof goods and services  What istrue about thecash flow from theoperating activitiessection of thestatementofcash flows? A. Increasesin current liability accountsrepresents an inflow ofcash and should be added to net income B. Decreasesin current liability accountsrepresent an outflow ofcash and should be added to net income C. Increasesin current liability accountsrepresent an outflow ofcash and should besubtracted from net income D. Decreasesin current liability accounts represent an inflow ofcash and should be added to net income  Partial financial data for a company is asfollows.EBIT $250,000 Depreciation $10,000 Changein working capital $2,000Net capital expenditures $3,000 Taxrate 30% What isthecompany’sfreecash flow?A. $255,000 B. $178,000 C. $180,000 D. $265,000  An analyst iscomparing theratiosof twofirms and needsto address accounting differences. Whatwould be