WGU C214 OA Financial Management Pre Assessment Exam
1. How can a private firm appropriately maximize shareholder value?
- By increasing the firm's stock price
- By reducing the firm's labor
- By making decisions that keep the control of the business with the owners-
: ✓✓✓ By making decisions that keep the control of the business with the owners
2. 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
- Because an exclusively domestically focused regulatory approach is
still effective
- Because weaving international concerns into domestic policy is cost-
effec- tive
- Because other jurisdictions have the same priorities and solutions as the
United States: ✓✓✓ Because international investing in a global marketplace is
the con- cern of American investors
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,3. What is one of the two basic types of financial instruments?
- Checking accounts
- Bonds
- Euros
- Hedge funds: ✓✓✓ Bonds
4. What are the likeliest outcomes if a company outsources the
manufacturing of its products to a foreign country?
Choose 2 answers.
- Consumer prices will decrease.
- Tariffs will decrease.
- Domestic wages will increase.
- Production capacity will decrease.
- Domestic employment will decrease.: ✓✓✓Consumer prices will
decrease. Domestic employment will decrease.
5. What do the content and structure of a balance sheet report?
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,- The gains and losses at a point in time
- The revenues and expenses for a period of time
- The assets, liabilities, and equity at a point in time
- The expenses, assets, and liabilities for a period in time: The assets,
liabilities, and equity at a point in time
6. A company reported an increase in accounts receivable of $5,000 during
the recent period. Half of this amount is expected to be collected next
period.
How will this change in accounts receivable affect the cash flows from the
operating activities section?
- The change will decrease cash flows from operations by $2,500.
- The change will increase cash flows from operations by $2,500.
- The change will increase cash flows from operations by $5,000.
- The change will decrease cash flows from operations by $5,000.: The
change will decrease cash flows from operations by $5,000.
7. Which statement accurately explains the recognition of revenues and
ex- penses under accounting income and income for tax purposes?
Revenue and expenses recognized must be matched with assets.
Revenue and expenses recognized must be matched with liabilities.
Revenues and expenses may be recognized in one period for
accounting income purposes and in a different period for income tax
purposes.
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, Revenues and expenses are always recognized in the same period for ac-
counting income purposes and income for tax purposes.: Revenues and ex-
penses may be recognized in one period for accounting income purposes and in
a different period for income tax purposes.
8. Selected Data for 20x2 for ABD Inc.
Net Income$ 1,000Depreciation
Expense$ 300
Change in Operating Assets$ 600
Change in Net Property, Plant, and Equipment$
5,000 Changes in Long-Term Liabilities$ 1,000
Dividends Paid$ 200
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1. How can a private firm appropriately maximize shareholder value?
- By increasing the firm's stock price
- By reducing the firm's labor
- By making decisions that keep the control of the business with the owners-
: ✓✓✓ By making decisions that keep the control of the business with the owners
2. 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
- Because an exclusively domestically focused regulatory approach is
still effective
- Because weaving international concerns into domestic policy is cost-
effec- tive
- Because other jurisdictions have the same priorities and solutions as the
United States: ✓✓✓ Because international investing in a global marketplace is
the con- cern of American investors
Downloaded by andrew peter ()
,3. What is one of the two basic types of financial instruments?
- Checking accounts
- Bonds
- Euros
- Hedge funds: ✓✓✓ Bonds
4. What are the likeliest outcomes if a company outsources the
manufacturing of its products to a foreign country?
Choose 2 answers.
- Consumer prices will decrease.
- Tariffs will decrease.
- Domestic wages will increase.
- Production capacity will decrease.
- Domestic employment will decrease.: ✓✓✓Consumer prices will
decrease. Domestic employment will decrease.
5. What do the content and structure of a balance sheet report?
Downloaded by andrew peter ()
,- The gains and losses at a point in time
- The revenues and expenses for a period of time
- The assets, liabilities, and equity at a point in time
- The expenses, assets, and liabilities for a period in time: The assets,
liabilities, and equity at a point in time
6. A company reported an increase in accounts receivable of $5,000 during
the recent period. Half of this amount is expected to be collected next
period.
How will this change in accounts receivable affect the cash flows from the
operating activities section?
- The change will decrease cash flows from operations by $2,500.
- The change will increase cash flows from operations by $2,500.
- The change will increase cash flows from operations by $5,000.
- The change will decrease cash flows from operations by $5,000.: The
change will decrease cash flows from operations by $5,000.
7. Which statement accurately explains the recognition of revenues and
ex- penses under accounting income and income for tax purposes?
Revenue and expenses recognized must be matched with assets.
Revenue and expenses recognized must be matched with liabilities.
Revenues and expenses may be recognized in one period for
accounting income purposes and in a different period for income tax
purposes.
Downloaded by andrew peter ()
, Revenues and expenses are always recognized in the same period for ac-
counting income purposes and income for tax purposes.: Revenues and ex-
penses may be recognized in one period for accounting income purposes and in
a different period for income tax purposes.
8. Selected Data for 20x2 for ABD Inc.
Net Income$ 1,000Depreciation
Expense$ 300
Change in Operating Assets$ 600
Change in Net Property, Plant, and Equipment$
5,000 Changes in Long-Term Liabilities$ 1,000
Dividends Paid$ 200
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