WGU C214 PRE -ASSESSMENT - UPDATED 2024 COMPLETE EXAM QUESTIONS AND CORRECT ANSWERS VERIFIED BY EXPERTS|ALREADY GRADED A+ PASS!!! [LEARN] 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 acco unts receivable affect the cash flows from the operating activities section? - CORRECT ANSWER>>> The change will decrease cash flows from operations by $5,000. [LEARN] Which statement accurately explains the recognition of revenues and expenses under accou nting income and income for tax purposes? - CORRECT ANSWER >>>Revenues and expenses may be recognized in one period for accounting income purposes and in a different period for income tax purposes. [LEARN] Selected Data for 20x2 for ABD Inc. Netincome $ 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 assum ing no asset disposals? - CORRECT ANSWER >>>$5,300 outflow How can a private firm appropriately maximize shareholder value? - CORRECT 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? - CORRECT 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? - CORRECT ANSWER>>> Bonds What are the likeliest outcomes if a company outsources the manufacturing of its products to a foreign country? - CORRECT ANSWER>>> Consumer prices will decrease and Domestic employment will decrease. What is true about the content and structure of a balance sheet? - CORRECT ANSWER>>> It reports the assets, liabilities, and equity at a point in time. What is the basic equation for a balance sheet? - CORRECT ANSWER>>> Assets = Liabilities + Equity [LEARN] What do cash flows from investing activities generally relate to? - CORRECT ANSWER>>> A firm 's purchase and sale of long -term assets [LEARN] Which transaction is reflected in cash flow from operating activities? - CORRECT ANSWER>>> Cash sales to customers [LEARN] What does free cash flow represent? - CORRECT ANSWER>>> Cash available for distribut ion after funding required reinvestment An analyst is comparing the ratios of two firms and needs to address timing differences. What would be considered an example of a timing difference between the two firms? - CORRECT ANSWER>>> The firms have different fiscal years. A company's year -end balance sheetfor 2013 shows the following: Accounts receivable: $900 Inventory: $1200 Fixed assets: $1000 Accounts payable: $1300 Sales: $4000 Salaries expense: $275 What is their fixed asset turnover ratio? - CORRECT ANSWER>>> 4.0 A firm has a ROE (return on equity) of 0.27 and the industry average ROE is 0.24. Which conclusion would an analyst draw when comparing the firm to the industry? - CORRECT ANSWER>>> The firm is generating higher returns to owners than the industry. [LEARN] What must have taken place for a firm to recognize revenue, in order for the firm to comply with the accrual accounting rules? - CORRECT ANSWER>>> The product must have been delivered.
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