Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024
WGU 214. FINANCIAL MANAGEMENT
PVCC. Pre-Assessment Practice Questions
and Answers
How can a private firm appropriately maximize shareholder value? - 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? - ANSWER✔✔-
Because American investors are focused on international investing in a global marketplace
What is one of the two basic types of financial instruments? - ANSWER✔✔-Bonds
If a company outsources the manufacturing of its products to a foreign country, what are the likeliest
outcomes?
Choose 2 answers - ANSWER✔✔-Consumer prices will decrease. Domestic employment will decrease.
What is true about the content and structure of a balance sheet? - ANSWER✔✔-It reports 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.
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, Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024
How will this change in accounts receivable affect the cash flows from the operating activities section? -
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? - 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 $ 1,000
Depreciation 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 the firm's cash flow from investments, using the data above and assuming no asset disposals? -
ANSWER✔✔-$5,300 outflow
What is the basic equation for a balance sheet? - ANSWER✔✔-Assets = Liabilities + Equity
What do cash flows from investing activities generally relate to? - ANSWER✔✔-A firm's purchase and
sale of long-term assets
Which transaction is reflected in cash flow from operating activities? - ANSWER✔✔-Cash sales to
customers
Copyright ©Stuvia International BV 2010-2024 Page 2/13
WGU 214. FINANCIAL MANAGEMENT
PVCC. Pre-Assessment Practice Questions
and Answers
How can a private firm appropriately maximize shareholder value? - 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? - ANSWER✔✔-
Because American investors are focused on international investing in a global marketplace
What is one of the two basic types of financial instruments? - ANSWER✔✔-Bonds
If a company outsources the manufacturing of its products to a foreign country, what are the likeliest
outcomes?
Choose 2 answers - ANSWER✔✔-Consumer prices will decrease. Domestic employment will decrease.
What is true about the content and structure of a balance sheet? - ANSWER✔✔-It reports 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.
Copyright ©Stuvia International BV 2010-2024 Page 1/13
, Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024
How will this change in accounts receivable affect the cash flows from the operating activities section? -
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? - 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 $ 1,000
Depreciation 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 the firm's cash flow from investments, using the data above and assuming no asset disposals? -
ANSWER✔✔-$5,300 outflow
What is the basic equation for a balance sheet? - ANSWER✔✔-Assets = Liabilities + Equity
What do cash flows from investing activities generally relate to? - ANSWER✔✔-A firm's purchase and
sale of long-term assets
Which transaction is reflected in cash flow from operating activities? - ANSWER✔✔-Cash sales to
customers
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