WGU D366 |OA |Objective Assessment Section 2
Exam
Correct
Incorrect
1 of 93
Term
Which type of risk affects all participants in the market equally, rather
than on a firm-specific basis?
Give this one a try later!
Systematic risk Liquidity risk
Procedural risk Financial risk
Don't know?
2 of 93
Term
,Which action will reduce systemic risk but not firm-specific risk?
Give this one a try later!
Increasing the amount of debt in the
Cash received from the sale of used
capital structure in relation to the
equipment
amount of common equity
Diversifying an investment
portfolio
Entering a hedging agreement Paying a higher dividend than normal
for foreign currency
transactions
Don't know?
3 of 93
Term
What is one challenge in valuing assets and liabilities under the mixed
attribute measurement model?
Give this one a try later!
Net income is more closely correlated with cash flow from operations than with the
other two categories of cash flow
, Deciding on the proper valuation method of certain assets and liabilities
Valuation methods include historical, fair value, and mixes of the two. Each
method will give different results, affecting both the balance sheet and
income statement.
Interest earned on a municipal bond
Interest earned on a municipal bond is a permanent difference (i.e., it is included in
net income for financial reporting but will never appear on the income tax return as
taxable income).
ROCE will increase when there is more risk in the capital structure of the firm.
As the capital structure leverage (a measure of risk) increases, the ROCE increases,
benefiting shareholders when net income is positive.
Don't know?
4 of 93
Term
What represents an exchange of economic value in terms of revenue
recognition?
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Comprehensive income is
Expenses are minimized in operations
realized in a market transaction
Net profit is recorded internally Assets are depreciated over time
, Don't know?
5 of 93
Term
Which transaction represents a cash inflow from investing activities?
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Cash invested in marketing
Cash paid for employee salaries
campaigns
Cash received from the sale of Cash used for purchasing new
used equipment equipment
Don't know?
6 of 93
Term
A company has the following capital structure during its most recent
year:
January 1December 31Preferred stock, $30 par value, 500 shares issued
and outstanding at January 1 and December 31$ 30,000$
30,000Common stock, $15 par value, 5,000 shares issued; 5,000 shares
outstanding at January 1 and 4,000 shares outstanding at December 31$
75,000$ 75,000Additional paid-in capital$105,000$105,000Retained
Exam
Correct
Incorrect
1 of 93
Term
Which type of risk affects all participants in the market equally, rather
than on a firm-specific basis?
Give this one a try later!
Systematic risk Liquidity risk
Procedural risk Financial risk
Don't know?
2 of 93
Term
,Which action will reduce systemic risk but not firm-specific risk?
Give this one a try later!
Increasing the amount of debt in the
Cash received from the sale of used
capital structure in relation to the
equipment
amount of common equity
Diversifying an investment
portfolio
Entering a hedging agreement Paying a higher dividend than normal
for foreign currency
transactions
Don't know?
3 of 93
Term
What is one challenge in valuing assets and liabilities under the mixed
attribute measurement model?
Give this one a try later!
Net income is more closely correlated with cash flow from operations than with the
other two categories of cash flow
, Deciding on the proper valuation method of certain assets and liabilities
Valuation methods include historical, fair value, and mixes of the two. Each
method will give different results, affecting both the balance sheet and
income statement.
Interest earned on a municipal bond
Interest earned on a municipal bond is a permanent difference (i.e., it is included in
net income for financial reporting but will never appear on the income tax return as
taxable income).
ROCE will increase when there is more risk in the capital structure of the firm.
As the capital structure leverage (a measure of risk) increases, the ROCE increases,
benefiting shareholders when net income is positive.
Don't know?
4 of 93
Term
What represents an exchange of economic value in terms of revenue
recognition?
Give this one a try later!
Comprehensive income is
Expenses are minimized in operations
realized in a market transaction
Net profit is recorded internally Assets are depreciated over time
, Don't know?
5 of 93
Term
Which transaction represents a cash inflow from investing activities?
Give this one a try later!
Cash invested in marketing
Cash paid for employee salaries
campaigns
Cash received from the sale of Cash used for purchasing new
used equipment equipment
Don't know?
6 of 93
Term
A company has the following capital structure during its most recent
year:
January 1December 31Preferred stock, $30 par value, 500 shares issued
and outstanding at January 1 and December 31$ 30,000$
30,000Common stock, $15 par value, 5,000 shares issued; 5,000 shares
outstanding at January 1 and 4,000 shares outstanding at December 31$
75,000$ 75,000Additional paid-in capital$105,000$105,000Retained
