WGU D366 Conceptual Preparation
|PA |Pre- Assessment Exam
Correct
Incorrect
1 of 90
Term
A financial analyst is tasked with analyzing a manufacturing company.
The financial analyst found that the manufacturing company reported
land as $7,000,000 on its balance sheet. In the notes to financial
statements for land, the company stated that the land was appraised
this year, and the company recorded an impairment loss of $2,000,000
after 10 years of holding the land. The company's net income for the
year is $10,000,000. Which analysis should the financial analyst make
based on the given data to analyze this company?
Give this one a try later!
The analyst should increase the
The analyst should conclude the
company's land value by $2,000,000
company appraises its land valuation
for further analysis of the company's
every 10 years.
balance sheet.
, The analyst should conclude that the The analyst should increase the
company has used the adjusted company's net income by the
historical cost method in the land's impairment amount for
valuation of land. future profitability analysis.
Don't know?
2 of 90
Term
A company's cost of goods sold to sales percentage and the inventory
turnover ratio have increased in the current year, when compared to
the previous year.What is the possible reason behind this increase?
Give this one a try later!
The company has lowered the
The company has reduced marketing
product prices to sell inventory
expenses.
more quickly.
The company has improved inventory The company has increased
management. production costs significantly.
Don't know?
3 of 90
Term
,Which item will be included in the calculation of the net cash flows
from the operating activities in the statement of cash flows?
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Outstanding checks Cash dividends paid
Deposits in transit Bad debt expenses
Don't know?
4 of 90
Term
A financial analyst is required to analyze the financial statements of
Alliah Company. While analyzing, the analyst discovered that the
company does not have adequate current assets to meet its total
current liabilities. Thus, the company might face difficulties in meeting
its upcoming payments toward its current liabilities. Which method did
the financial analyst use to make this analysis?
Give this one a try later!
The financial analyst prepared a The financial analyst prepared a
common-size income statement. common-size balance sheet.
, The financial analyst calculated The financial analyst calculated
various profitability ratios. various short-term liquidity
ratios.
Don't know?
5 of 90
Term
Which information can be found in the statement of cash flows
prepared using the direct method that cannot be found in the
statement if prepared using the indirect method?
Give this one a try later!
The amount of cash the
The amount of cash the company
company generated through
spent on operating expenses
sales
The amount of cash the company The amount of cash the company
used for debt repayment invested in new equipment
Don't know?
6 of 90
Term
A manufacturing company has liabilities to equity ratio equal to 1 and
the liabilities to assets ratio of the company is 0.5. What does this
|PA |Pre- Assessment Exam
Correct
Incorrect
1 of 90
Term
A financial analyst is tasked with analyzing a manufacturing company.
The financial analyst found that the manufacturing company reported
land as $7,000,000 on its balance sheet. In the notes to financial
statements for land, the company stated that the land was appraised
this year, and the company recorded an impairment loss of $2,000,000
after 10 years of holding the land. The company's net income for the
year is $10,000,000. Which analysis should the financial analyst make
based on the given data to analyze this company?
Give this one a try later!
The analyst should increase the
The analyst should conclude the
company's land value by $2,000,000
company appraises its land valuation
for further analysis of the company's
every 10 years.
balance sheet.
, The analyst should conclude that the The analyst should increase the
company has used the adjusted company's net income by the
historical cost method in the land's impairment amount for
valuation of land. future profitability analysis.
Don't know?
2 of 90
Term
A company's cost of goods sold to sales percentage and the inventory
turnover ratio have increased in the current year, when compared to
the previous year.What is the possible reason behind this increase?
Give this one a try later!
The company has lowered the
The company has reduced marketing
product prices to sell inventory
expenses.
more quickly.
The company has improved inventory The company has increased
management. production costs significantly.
Don't know?
3 of 90
Term
,Which item will be included in the calculation of the net cash flows
from the operating activities in the statement of cash flows?
Give this one a try later!
Outstanding checks Cash dividends paid
Deposits in transit Bad debt expenses
Don't know?
4 of 90
Term
A financial analyst is required to analyze the financial statements of
Alliah Company. While analyzing, the analyst discovered that the
company does not have adequate current assets to meet its total
current liabilities. Thus, the company might face difficulties in meeting
its upcoming payments toward its current liabilities. Which method did
the financial analyst use to make this analysis?
Give this one a try later!
The financial analyst prepared a The financial analyst prepared a
common-size income statement. common-size balance sheet.
, The financial analyst calculated The financial analyst calculated
various profitability ratios. various short-term liquidity
ratios.
Don't know?
5 of 90
Term
Which information can be found in the statement of cash flows
prepared using the direct method that cannot be found in the
statement if prepared using the indirect method?
Give this one a try later!
The amount of cash the
The amount of cash the company
company generated through
spent on operating expenses
sales
The amount of cash the company The amount of cash the company
used for debt repayment invested in new equipment
Don't know?
6 of 90
Term
A manufacturing company has liabilities to equity ratio equal to 1 and
the liabilities to assets ratio of the company is 0.5. What does this
