WGU C214 Multiple Attempt Study Guide with complete solutions.
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Course
WGU C214
Institution
WGU C214
What standards are used to help US investors understand and compare foreign financial statements to domestic financial statements?
International Financial Reporting Standards
When a company is optimizing its resources and maintaining or improving productivity, they are engaging in what hypoth...
wgu c214 multiple attempt study guide with complete solutions
what standards are used to help us investors understand and compare foreign financial statements to domestic financial statements
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WGU C214 Multiple Attempt Study Guide
What standards are used to help US investors understand and compare foreign
financial statements to domestic financial statements? - Answer International Financial
Reporting Standards
When a company is optimizing its resources and maintaining or improving productivity,
they are engaging in what hypothesis - Answer Efficient Market Hypothesis
What is the basic type of negotiable debt? - Answer Bonds
What is the characteristic of a stock sold in the secondary markets? - Answer Stocks
sold in the secondary markets are traded after the initial offering.
If a company is engaged in lobbying for tariffs and trade restrictions, if they are
successful, what are the two principal impacts? - Answer Protection for the lobbyist and
higher prices for the consumer pre reduced competition.
Describe what an income statement is in one sentence? - Answer It covers a period of
time and starts with sales, takes out expenses, and ends with net income.
What is the difference between taxable income and accounting income? - Answer
Accounting income is reported as net income on the income statement whereas
Taxable income is used to determine the amount of tax a firm must pay.
Net Income 15,000
Depreciation Exp 2,000
Change in Operating Assets 1,200
Change in PP&E 2,000
Change in long-term liab. 1,200
Dividends paid 1,500
What is the Cash Flow from Financing? - Answer CFF= Incr Stock + Incr Debt -
Dividends Paid
= 1200-1500
= -300
Net Income 121,000
Depreciation Expense 4,000
Accounts Receivable (30,000)
Change in net PP&E 15,000
Accounts Payable (5,000)
New Bank Loan 12,000
Dividends Paid 1,500
, What is the Cash Flow from Investing? - Answer CFI = Change in Net PPE +
Depreciation Expense
= 15,000 + 4,000
= 19,000
A grandmother sets up a trust for her grandson. She desires him to receive $20,000 per
year. Her investment advisor finds an investment vehicle that
will yield 7%. How much will the grandmother have to put into the investment? - Answer
20000/.07= 140*12 =1680.00
What is the number of payments of a semi-annual bond if the number of years
remaining are 12? - Answer There are 24 semi-annual payments remaining
bWhat is the expected rate of return for a stock that has a eta of 2.1. The market rate is
8.5% with a risk free rate of 2%. - Answer E[R]=Rf + B(Rm - Rf)
=2% + 2.1(8.5%-2.0%)
=.02 + 2.1(0.0850-.02)
=.01565 or 15.65%
A company has a trial balance that shows $13,000 in bonds payable. On which financial
statement should this be shown? - Answer This would be shown on the Balance Sheet
under Long Term Liabilities
Which is the principal account comprising Cash Flow from Investing - Answer The
principal account for CFI is PP& E
What is the cash effect on the Statement of Cash Flow when current liabilities decline? -
Answer Results in a decrease in cash
If two companies use different inventory valuation methods, what difference would that
be called in calculating net income? - Answer Accounting Difference
There are two competitors. The gross margin for Green Company is .45. The gross
margin for Red Company is .40 Which company has a more productive manufacturing
process? Why? - Answer Green company has a more productive manufacturing
process because the high gross margins are usually associated with and efficient
production process.
What is the current ratio given a balance sheet with the following account balances:
Cash 10,000
Accounts Receivable 252,000
PP&E 725,000
Accounts Payable 93,000
Bank Loan 425,000
Common Stock 1,000,000 - Answer Current Ratio = Current Assets/Current Liabilities
=10000 + 252000/93000
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