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
D076 OA ASSESSMENT PASSED 100% £11.49   Add to cart
Quickly navigate to
Preview
  2.  
  3. AQA
  4.  
  5. WGU
  6.  
  7. WGU D076

Exam (elaborations)

D076 OA ASSESSMENT PASSED 100%
 3 views  0 purchase
  • Institution
  • AQA

Accounts Receivable Turnover (AR Turnover) - An activity ratio found by credit sales divided by accounts receivable. Average Collection Period (ACP) - An activity ratio found by the number of days in a year (365) divided by AR turnover. Current Ratio - A liquidity ratio found by current assets ...

[Show more]

Preview 3 out of 25  pages

Document information

  • February 3, 2024
  • 25
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • d076 wgu ratios and equations graded a
  • d076 oa assessment passed 100

Written for

All documents for this subject (128)

Seller

avatar-seller
jessyqueen

Content preview

D076 OA ASSESSMENT PASSED 100%
0/1

Why is it appropriate to calculate the value of a bond in the same way that the present value of an
annuity is calculated?



Bonds pay a coupon every six months, pay a constant coupon amount, and have a maturity date.



The cash flows that come from owning a bond grow at a constant rate every year, and the payments
continue forever.



Even though bonds have a fixed length, the cash flows differ each year.



A bond is a fixed amount paid each period forever to compensate investors. - ✔✔✔Bonds pay a
coupon every six months, pay a constant coupon amount, and have a maturity date.



1/1

You signed an apartment contract today. You are going to pay $1,500 at the beginning of each month
for the next 12 months, starting today. What type of cash flows is this contract?



A perpetuity



Uneven cash flows



An ordinary annuity



An annuity due - ✔✔✔An annuity due

,A company's officers and board of directors are selling their stocks in the firm at higher prices due to
false accounting reports that made the stock seem more valuable than it truly was. Which ethical issue is
occurring in this situation?



Conflict between work and personal affairs



Maximizing shareholder value



Pursuing individual interest over client interests



Agency problem due to conflicting interests - ✔✔✔Agency problem due to conflicting interests



A financial analyst for the company Bobby's Books has been asked to evaluate a potential investment
using a method that considers the time value of money. Is there more than one way to do this?



Yes, the analyst could use both the NPV and the IRR.



Yes, the analyst could use the current ratio and could compare cost of capital rates.



No, there are no valuation methods that take into account the time value of money.



No, the analyst could only use cash budgeting to evaluate the project. - ✔✔✔Yes, the analyst could use
both the NPV and the IRR.



A firm had sales of $100,000 this month. However, the firm received only $90,000 in cash from sales.
Why would the firm receive $10,000 less cash than its monthly sales?

, Because the firm purchased inventory on credit this month



Because the firm paid cash for inventory purchased



Because the firm paid down $10,000 on a loan



Because the firm did not make all sales on cash - ✔✔✔Because the firm did not make all sales on cash



Beckingham Sports is an American sporting goods company. Based on a $400,000 market study and a
$600,000 fee for consulting spent prior to the project, the firm can increase its annual operating cash
flow by $3,000,000 by selling overseas. Because the firm was considering the expansion, it spent
$2,000,000 to purchase a land for new factory and equipment. However, someone is making an offer to
pay the company $3,000,000 for the land it purchased for the new factory. What is relevant to include in
the company's capital budgeting decision?



$400,000 spent on the market study



$2,000,000 spent to purchase the land



$600,000 for the consulting



$3,000,000 for the offer price of the land - ✔✔✔$3,000,000 for the offer price of the land



How do you factor sunk costs into capital investment analysis?



They are inputted as negative cash inflows along with the initial outlay.

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 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 jessyqueen. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for £11.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

73918 documents were sold in the last 30 days

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

Start selling
£11.49
  • (0)
  Add to cart