100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
WGU C214 Concepts Only Multi Choice Version Questions with 100% correct answers | verified | latest update 2024 CA$11.44   Add to cart
Quickly navigate to
Preview
  2.  
  3. WGU
  4.  
  5. WGU
  6.  
  7. WGU

Exam (elaborations)

WGU C214 Concepts Only Multi Choice Version Questions with 100% correct answers | verified | latest update 2024
 5 views  0 purchase
  • Course
  • WGU
  • Institution
  • WGU

WGU C214 Concepts Only Multi Choice Version Questions with 100% correct answers | verified | latest update 2024

Preview 3 out of 18  pages

Document information

  • June 17, 2024
  • 18
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • wgu c214 concepts only multi choice version quest

Written for

  • WGU
  • WGU
  • WGU
All documents for this subject (6247)

Seller

avatar-seller
AnswersCOM

Reviews received

Content preview

WGU C214 Concepts Only Multi Choice
Version
Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) -
ANS-False

Stocks and bonds are two types of financial instruments (T/F) - ANS-True

The matching principle in accrual accounting requires that: - ANS-Revenues be
recognized when the earnings process is complete and matches expenses to revenues
recognized.

A basic equation for the balance sheet is: - ANS-Equity = Assets - Liabilities

Why is the Balance Sheet known as a permanent statement? - ANS-Because the other
statements are reset at the end of the fiscal year

How do you calculate the change in Retained Earnings? - ANS-Net Income - Dividends

Which of the following is generally true? - ANS-Operating Income and EBIT are the
same

Which components are part of total assets? - ANS-Cash Accounts Receivable,
Inventory, Long Term Assets

Which components are part of current assets? - ANS-Inventory, Cash, Accounts
Receivable, Short Term Investments

Which components are part of Total Liabilities? - ANS-Bonds, Accounts Payable,
Mortgage

When Fixed Assets increase what happens to Cash? - ANS-Cash decreases

Which is the purpose of the statement of cash flows? - ANS-explains the change in
cash balance for one period of time

The OIROI (Operating Income Return on Investment) uses what elements on the
income statement? - ANS-EBIT, Total Assets

,Why would a company be interested in the TAT-Total Asset Turnover-ratio?
a - ANS-How efficient assets are at producing sales

Which of the following gives the largest effective rate (APY) - ANS-18.6% compounded
daily

What does the beta coefficient represent? - ANS-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? - ANS-Because depreciation expense is tax deductible

Why is the NPV preferred over the IRR? Pick Two - ANS-1-It measures the dollar value
2- It is harder to calculate

What does the Degree of Financial Leverage indicate? - ANS-The reliance on debt

If a company has a high degree of financial leverage, what does that tell us about the
firm's risk profile? - ANS-Higher profits to shareholders

What is the cash cycle? - ANS-The amount of time to regenerate cash

Why is float important to understand? - ANS-To time cash expenditures

What should a company do to manage its working capital? - ANS-Collect quickly and
pay slowly

What would be a source of information to determine Replacement Cost? - ANS-Building
Appraisal

What does the Sarbanes-Oxley Act require companies to do? - ANS-Have internal
control audits

FINRA (Financial Industry Regulatory Authority) does the following: (pick one) -
ANS-Prosecutes naughty stock brokers

If a product is made 100% domestically, what can affect its domestic market? -
ANS-International competition

, If a company makes its product in a foreign country where labor costs are much lower,
what happens? - ANS-Profits go up and domestic employment decreases.

If the value of a dollar increases, the price of imports: - ANS-Decreases

Why would a farmer buy a hedge when he signs a contract to sell produce overseas? -
ANS-To reduce currency risk

A basic equation for the balance sheet is: - ANS-Equity = Assets - Liabilities

Why is the Balance Sheet known as a permanent statement? - ANS-Because the other
statements are reset at the end of the fiscal year

How do you calculate the change in Retained Earnings? - ANS-Net Income - Dividends

Which of the following is generally true? - ANS-Operating Income and EBIT are the
same

Which components are part of total assets? - ANS-Cash Accounts Receivable,
Inventory, Long Term Assets

Which components are part of current assets?
a. Cash, Accounts Receivable, Property Plant & Equipment
b. Accounts Receivable, Accounts Payable, Inventory
c. Long Term Debt, Property Plant & Equipment, Common Stock
d. Inventory, Cash, Accounts Receivable, Short Term Investments - ANS-Inventory,
Cash, Accounts Receivable, Short Term Investments

Suppose the inventory turnover of a company is higher than the industry. Based on this
observation, which of the following is most likely? - ANS-The firm has too little inventory
resulting in lost sales or stock-outs.

If a company wishes to obtain a bank loan, will it want to have a higher current ratio or a
lower current ratio? - ANS-higher

If an investor knows the idiosyncratic risk, the investor knows the: - ANS-Beta
Coefficient

Why would we reject a project based on the NPV? - ANS-the NPV is a negative number

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller AnswersCOM. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$11.44. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

79271 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$11.44
  • (0)
  Add to cart