c214 Financial Management WGU Exam Questions and Answers 100% Pass

c214 Financial Management WGU Exam Questions and Answers 100% Pass Trading on the NYSE is executed without a specialist T or F - Answer- False What are 2 types of financial instruments - Answer- Stocks and BondsM When revenue is matched with cost of sales in an income statement it is called? - Answer- matching principle A high quality customer just purchased $500,000 worth of product from your company. The contract calls for immediate delivery of this product with a cash payment of $300,000 today and $200,000 in the next 60 days. The expense associated with the product if $300,000, of which $100, has not been paid to your supplier. Under the accrual based accounting system you will most likely report Revenues of ___________________________Expenses of _______________________________ - Answer- Revenue $500,000, Expenses of 300,000 A firm reported retained earnings of $300 12/31/2021. For 12/31/2021, the firm reports retained earnings of $400 and pays dividends of $25. What was the net income in 2023? - Answer- Beg RE 300, NI = 125, Div -25, RE 400. A basic equation of the balance sheet is - Answer- Assets = equity - liabilities Sales minus cost of sales minus other expenses equals what? - Answer- Operating income or EBIT What is the balance sheet known as a permanent statement? - Answer- Because the other statements are reset at the end of the year. How do you calculated the change in retained earning? - Answer- Net income - dividends name four accounts that are a part of total assets - Answer- cash accounts receivable, inventory, long term assets. Sales misnus cost of sales minuss other expenses equals what? - Answer- Operating Income or EBIT Name 3 accounts that are part of current assets? - Answer- Inventory, Cash, accounts receivables, short term investments name 4 accounts that re part of total liabilities - Answer- Bonds, accounts payable, mortgage Intel reported the following for 2014: Net Income 100,000 Depreciation 20,000 Change in A/R 10,000 What is the cash flow from operating activities? - Answer- 100 + 20 - 10 = 110 name 3 accounts that are only included in Cash Flow from Financing CFF - Answer- Common stock, dividends paid, bonds payable Define the statement of cash flows - Answer- calculated for the same period of time as the Income Statement is calculated based on the Income Statement and the changes in the balance sheet is one of the 3 basic accounting statements Intel reported the following for 2014: Gross Equipment (1/1/14) 50,000 Gross Equipment (12/31/14) 65,000 Net income 100,000 Depreciation 20,000 What is the cash flow from investing activities for 2014? - Answer- 15000, depreciation is not counted when using Gross PPE What is the cash flow from operations given the following information? Net Income: 450,000 Change in accounts receivable: 120,000 Change in inventory: -90,000 Change in PP&E: 60,000 depreciation expense 110,000 Change in accounts payable: 50,000 Change is accrued expenses: -75,000