WGU C214 Finance Management PVCC
Q1. How can a private firm appropriately maximize shareholder value?
By making decisions that keep the control of the business with the owners
Q2. 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
Q3. What is one of the two basic types of financial instruments?
Bonds
Q4. Which two effects does the unbundling and offshoring of production have on
employment when the global value chain is taken into consideration?
Unbundling and offshoring allows firms to offer intermediate and final goods at lower prices,
thus increasing employment.
Unbundling and offshoring decreases costs, which results in expansion of sales and higher
employment
Q5. What is true about the content and structure of a balance sheet?
It reports the assets, liabilities, and equity at a point in time
Q6. 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 $5,000
Q7. Which statement accurately explains the recognition of revenues and expenses under
accounting income and income for tax purposes?
Revenues and expenses are always recognized in the same period for accounting income
purposes and income for tax purposes
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Q8. What is the basic equation for a balance sheet?
Assets = liabilities + equity
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