WGU C214 Concepts Only Multi Choice Version Questions With 100% Correct Answers.

Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) - Answer-False Stocks and bonds are two types of financial instruments (T/F) - Answer-True The matching principle in accrual accounting requires that: - Answer-Revenues be recognized when the earnings process is complete and matches expenses to revenues recognized. A basic equation for the balance sheet is: - Answer-Equity = Assets - Liabilities Why is the Balance Sheet known as a permanent statement? - Answer-Because the other statements are reset at the end of the fiscal year How do you calculate the change in Retained Earnings? - Answer-Net Income - Dividends Which of the following is generally true? - Answer-Operating Income and EBIT are the same Which components are part of total assets? - Answer-Cash Accounts Receivable, Inventory, Long Term Assets Which components are part of current assets? - Answer-Inventory, Cash, Accounts Receivable, Short Term Investments Which components are part of Total Liabilities? - Answer-Bonds, Accounts Payable, Mortgage When Fixed Assets increase what happens to Cash? - Answer-Cash decreases Which is the purpose of the statement of cash flows? - Answer-explains the change in cash balance for one period of timeThe OIROI (Operating Income Return on Investment) uses what elements on the income statement? - Answer-EBIT, Total Assets Why would a company be interested in the TAT-Total Asset Turnover-ratio? a - Answer-How efficient assets are at producing sales Which of the following gives the largest effective rate (APY) - Answer-18.6% compounded daily What does the beta coefficient represent? - Answer-It is a statistically-derived measure of volatility Why is depreciation expense taken out of the net income calculation, yet added back at the end? - Answer-Because depreciation expense is tax deductible