WGU C214 (WGUC214)

Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) - False Stocks and bonds are two types of financial instruments (T/F) - True The matching principle in accrual accounting requires that: - Revenues be recognized when the earnings process is complete and matches expenses to revenues recognized. A basic equation for the balance sheet is: - Equity = Assets - Liabilities Why is the Balance Sheet known as a permanent statement? - Because the other statements ar...

Trading on the NYSE is executed without a specialist (i.e. a market maker). True or False? - False Stocks and bonds are two types of financial instruments (T/F) - True The matching principle in accrual accounting requires that: - Revenues be recognized when the earnings process is complete and matches expenses to revenues recognized. A basic equation for the balance sheet is: - Equity = Assets - Liabilities Why is the Balance Sheet known as a permanent statement? - Because the other statemen...

The stock price of a company increases and the market is deemed efficient What assumption can be made ? - A new , patented , product was introduced to the market Which statement is true about how the global market affects the U.S. - Foreign investors and fund managers make decisions based on financial reporting standards financial statements audited overseas . What are secondary markets ? - Markets where securities are traded subsequent to the initial offering . A special interest group ...

1. The stock price of a company increases and the market is deemed efficient. What assumption can be made? A. A new, patented, product was introduced to the market. B. New machinery was purchased with a useful life of 20 years. C. Management is optimizing its resources and operating efficiently. D. Management hired new employees and invested in a training program. 2. Which statement is true about how the global market affects the U.S. A. A bad options trade executed by a foreign subs...

Trading on the NYSE is executed without a specialist (i.e. a market maker). - False Accruals - are expenses a firm owes but hasn't paid yet. (Like wages - the employee has worked, but his check hasn't been cut yet.) Which of the following best describes the guiding principle for revenue recognition within accrual accounting system: - Revenue is reported when the earnings process is complete A high-quality customer just purchased $500,000 worth of product from your company. The contract ca...

How can a private firm appropriately maximize shareholder value? - By making decisions that keep the control of the business with the owners Why are American regulators focused on international investing in a global marketplace? - Because international investing in a global marketplace is the concern of American investors What is one of the two basic types of financial instruments? - Bonds If a company outsources the manufacturing of its products to a foreign country, what are the likeli...

Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) - False Stocks and bonds are two types of financial instruments (T/F) - True The matching principle in accrual accounting requires that: - Revenues be recognized when the earnings process is complete and matches expenses to revenues recognized. A basic equation for the balance sheet is: - Equity = Assets - Liabilities Why is the Balance Sheet known as a permanent statement? - Because the other statements ar...

WGU C214 Everything You Need to Know to Pass Exam 11. EBIT: $1,000,000 Depreciation: $30,000 Change in working capital($5,000) Net capital expenditures: $10,000 Tax rate: 40% What is the company's free cash flow - 1,000,000*(1-.40) + 30,000) - (-5,000) - 10,000 = 625,000 12. Define Free Cash Flow - Represents the cash available for the company to repay creditors or pay dividends and interest to investor 13. A company reported an increase in accounts payable of $4,000 during the recent peri...

What is included in the Income Statement and NOT in the Statement of Cash Flows? - Depreciation Expense Computation of Net Income: A co. sold products in 2014 for $120k and collected $100k cash and remainder in 2015. Co. incurred $70k expenses for 2014 and paid $100k which included $30k for expenses incurred in 2013. What is net income for 2014? - Computation of Net Income (R-E=NI) $50,000 Net Income = $120k - $70k = $50k, or Revenues - Expenses Incurred = Net Income Retained Earning S...

Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) - False Stocks and bonds are two types of financial instruments (T/F) - True The matching principle in accrual accounting requires that: - Revenues be recognized when the earnings process is complete and matches expenses to revenues recognized. A basic equation for the balance sheet is: - Equity = Assets - Liabilities Why is the Balance Sheet known as a permanent statement? - Because the other statements ar...