WGU- C708 PRE-ASSESSMENT PRINCIPLES OF FINANCE 2024 VERIFIED QUESTIONS AND ANSWERS
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Course
WGU- C708
Institution
WGU- C708
Corporations establish goals in areas including finance, diversity, and social responsibility. Match the corporate goal with the area that it addresses.
Answer options may be used more than once or not at all. Select your answers from the pull-down list.
Environmental goal
Diversity goal
Fi...
WGU- C708 PRE-ASSESSMENT PRINCIPLES OF
FINANCE 2024 VERIFIED QUESTIONS AND
ANSWERS
Corporations establish goals in areas including finance, diversity, and social
responsibility. Match the corporate goal with the area that it addresses.
Answer options may be used more than once or not at all. Select your
answers from the pull-down list.
Environmental goal
Diversity goal
Financial goal
Financial goal - CORRECT ANSWER Environmental goal-Create zero
waste
Diversity goal-Promote women and minorities
Financial goal-Make a profitable investment for the company
Financial goal-Switch to a freight company that provides a high volume
discount
An analysis of a potential purchase of a new piece of equipment has been
completed. The analysis included a review of the initial cost of the equipment,
annual operating expenses, and the value of the expected increased
production adjusted for the time value of money over the life of the
equipment.
,WGU- C708 PRE-ASSESSMENT PRINCIPLES OF
FINANCE 2024 VERIFIED QUESTIONS AND
ANSWERS
Place the investments in the order they should be selected based on their
valuation (from highest to lowest value).
Select your answers from the pull-down list.
Total costs of $700,000 and expected income $850,000
Total costs of $500,000 and expected income of $700,000
Total costs of $700,000 and expected income $875,000
Total costs of $500,000 and expected income $600,000 - CORRECT
ANSWER 2) Total costs of $700,000 and expected income $850,000
3) Total costs of $500,000 and expected income of $700,000
1) Total costs of $700,000 and expected income $875,000
4) Total costs of $500,000 and expected income $600,000
Classify each item as to whether it has or lacks a fundamental influence on
valuation.
Answer options may be used more than once or not at all. Select your
answers from the pull-down list. - CORRECT ANSWER Fundamental
influence-Opportunity cost
Fundamental influence-Cash flow
,WGU- C708 PRE-ASSESSMENT PRINCIPLES OF
FINANCE 2024 VERIFIED QUESTIONS AND
ANSWERS
Not a fundamental influence-Taxable income
Not a fundamental influence-Revenue recognition
Which scenario illustrates the strong form of the efficient market hypothesis
(EMH)? - CORRECT ANSWER An investor is making an investment
decision based on public information, as well as private information that is
known only to company insiders. This type of information is also known as
insider trading.
A company's accounting records include inflated numbers that give the
company a higher net income than its actual numbers. This overstatement
was agreed upon by the company and its auditors. This collusion between the
company and its auditors would be caught rather quickly due to regulations.
What agency regulates accounting practices between companies and their
accounting firms? - CORRECT ANSWER Public Company Accounting
Oversight Board
In credit unions, boards of directors that hire executives are elected from
among volunteering members (whereas in commercial banks, they are hired
by the stockholders from among non-member outsiders).
Which agency problem with banks does this structure seek to eliminate? -
CORRECT ANSWER Between owners and board of directors
, WGU- C708 PRE-ASSESSMENT PRINCIPLES OF
FINANCE 2024 VERIFIED QUESTIONS AND
ANSWERS
Why is transferability of ownership relatively easy in the case of
corporations? - CORRECT ANSWER Stocks can be bought and sold in
the stock market.
Match each account to the pair of financial accounting statements that it
appears on.
Answer options may be used more than once or not at all. Select your
answers from the pull-down list. - CORRECT ANSWER Cash-Balance
sheet and statement of cash flows
Net income-Income statement and statement of cash flows
Retained earnings-Balance sheet and income statement
How could a company that has a positive accounting income also be in trouble
of going bankrupt when looking at its cash balance? - CORRECT ANSWER
Accounting income does not take into account the cash that is needed to pay
salaries and dividends.
Which section of the statement of cash flows includes such transactions as
paying dividends to shareholders, repurchasing common stock, and proceeds
from the sale of long-term debt? - CORRECT ANSWER Cash flows from
financing activities
Use the following income statement for the current year. Assume the sales
are 35% higher than the last year sales of $800,000.
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