WGU PRINCIPLES OF FINANCE C708 PRE-
ASSESSMENT 2024 VERIFIED QUESTIONS AND
ANSWERS
A company has fixed assets of $509 million, total equity of $218 million,
current liabilities of $128 million, and long-term debt of $390 million.
What is the total for the company's current assets?
a.) $262 million
b.) $119 million
c.) $128 million
d.) $227 million - CORRECT ANSWER $227 million
A company has just reported sales of $557 million, costs of goods sold of $150
million, depreciation of $190 million and interest expense of $40.2 million.
What is the company's net income if the tax rate is 35%? (Round your answer
to the nearest decimal place.)
a.) $407.0 million
b.) $217.0 million
c.) $114.9 million
d.) $187.6 million - CORRECT ANSWER $114.9 million
,WGU PRINCIPLES OF FINANCE C708 PRE-
ASSESSMENT 2024 VERIFIED QUESTIONS AND
ANSWERS
Which item from a company's financial statement is considered a non-cash
item?
a.) Interest
b.) Taxes
c.) Utilities
d.) Intangibles - CORRECT ANSWER d.
With the accompanying information on page 4, what is the cash flow from
financing?
a.) $185,000
b.) ($19,000)
c.) ($17,000)
d.) $194,000 - CORRECT ANSWER $185,000
With the accompanying information on page 5, what is the cash flow from
investing in millions?
,WGU PRINCIPLES OF FINANCE C708 PRE-
ASSESSMENT 2024 VERIFIED QUESTIONS AND
ANSWERS
a.) ($1,430)
b.) $1,430
c.) ($1,039)
d.) $1,039 - CORRECT ANSWER ($1,430)
With the accompanying information on page 6, what is the correct times
interest earned?
a.) 1.50
b.) 2.05
c.) 2.91
d.) 3.59
e.) 6.99 - CORRECT ANSWER 6.99
Match the following ratios with the appropriate ratio formulas.
Average collection period, fixed asset turnover, return on equity, inventory
turnover, and quick ratio.
, WGU PRINCIPLES OF FINANCE C708 PRE-
ASSESSMENT 2024 VERIFIED QUESTIONS AND
ANSWERS
a.) Sales/Fixed assets, COGS/Inventory, AR/Daily credit sales, Net
income/Total equity, and (Current assets - Inventory)/Current liabilities
b.) (Current assets - Inventory)/Current liabilities, COGS/Inventory,
Sales/Fixed Assets, Net income/Total equity, and AR/Daily credit sales
c.) AR/Daily credit sales, Sales/Fixed assets, Net income/Total equity,
COGS/Inventory, and (Current assets - Inventory)/Current liabilities
d.) COGS/Inventory, AR/Daily credit sales, (Current assets -
Inventory)/Current liabilities, Sales/Fixed assets, and Net income/Total
equity - CORRECT ANSWER Ar/Daily credit sales, Sales/Fixed assets,
Net income/Total equity, COGS/Inventory, and (Current assets -
Inventory)/Current liabilities
With the accompanying balance sheets on page 8, what was XYZ's quick ratio
in 2012?
a.) 2.39
b.) 2.99
