WGU D366: Financial Statement Analysis |PA |Pre-
Assessment Exam
Correct 17
Incorrect
1 of 17
Term
A company provides unique materials used in space rockets with little
competition and can set high prices. Which economic force is
described?
High buyer leverage
Low monopoly level
High supplier power
Low entrance cost
Give this one a try later!
Working capital Uncollectible amounts
High supplier power Measurement error
, Don't know?
2 of 17
Term
A law firm applies for a loan to expand business operations. Before the
loan is approved, the lender conducts a detailed analysis of the firm's
liquidity and solvency. Why are the liquidity and solvency of the firm
important for the lender to assess?
The measurements describe the consistency of the firm's earnings
The ability of the firm to finance growth is made evident
The daily operational health of the firm is highlighted through this
analysis
The firm's ability to pay off long-term and short-term debt can be
discovered
Give this one a try later!
The firm's ability to pay off long-
Create an estimate using cash inflows
term and short-term debt can
and expenses
be discovered
The future cash flow potential is Declines in future share prices with
understated capitalization and legal implications
Don't know?
Assessment Exam
Correct 17
Incorrect
1 of 17
Term
A company provides unique materials used in space rockets with little
competition and can set high prices. Which economic force is
described?
High buyer leverage
Low monopoly level
High supplier power
Low entrance cost
Give this one a try later!
Working capital Uncollectible amounts
High supplier power Measurement error
, Don't know?
2 of 17
Term
A law firm applies for a loan to expand business operations. Before the
loan is approved, the lender conducts a detailed analysis of the firm's
liquidity and solvency. Why are the liquidity and solvency of the firm
important for the lender to assess?
The measurements describe the consistency of the firm's earnings
The ability of the firm to finance growth is made evident
The daily operational health of the firm is highlighted through this
analysis
The firm's ability to pay off long-term and short-term debt can be
discovered
Give this one a try later!
The firm's ability to pay off long-
Create an estimate using cash inflows
term and short-term debt can
and expenses
be discovered
The future cash flow potential is Declines in future share prices with
understated capitalization and legal implications
Don't know?
