WGU C214 _ 2023 Finance Management PVCC total of 66 questions with answers

WGU C214 2023 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 Q8. What is the basic equation for a balance sheet? Assets = liabilities + equity 1 WGU C214 Finance Management PVCC total of 66 questions with answers Q9. What do cash flows from investing activities generally relate to? A firm's purchase and sale of long-term assets Q10. Which transaction is reflected in cash flow from operating activities? Cash sales to customers Q11. What does free cash flow represent? Cash available for distribution after funding required reinvestment 12. An analyst is comparing the ratios of two different firms and needs to address timing differences. What would be considered an example of a timing difference between the two firms? The firms have different fiscal years 13. A company’s yearend balance sheet for 2013: AR: 900 Inventory: 1200 Fixed assets: 1000 AP: 1300 Sales: 4000 Salaries: 275 14. What is their fixed asset turnover ratio? 4.0 15. A firm has a ROE of 0.27 and the industry average ROE is 0.24 Which conclusion would an analyst draw when comparing the firm to the industry? The firm is generating higher returns to owners than the industry 16. What is an example of an inventory method for accounting purposes? Last in, first out method 17. A teacher won $100,000 and invests this money for 5 years at an interest rate of 4% (compounded annually). How much will the teacher have in principal and interest at the end of the 5 years? $121,665 18. An accountant is 40 years old with an anticipated retirement age of 70 years old. The accountant plans to save $6,000 per year at the end of the next 30 years to fund retirement. How much will the accountant have upon retirement, if the accountant is able to earn 4% annually on his investment?