WGU 214 Financial Management PVCC 2024 With 100%
Complete Solution
Secondary markets are where securities are initially offered to the public
FALSE
First place where securities are offered to the public
Auction market
Accounts payable represents money a firm owes to
Suppliers due to purchases made on credit
notes payable represents a loan from bank
Also require a formal loan agreement.
A/P refers to the amount of which is owed by a business to its supplier
The matching principle in accrual accounting requires that
revenues are matched to the expenses incurred to generate the revenues
The evolution of retained earnings is best described by
change in RE= Net income- Dividends
Net fixed assets represents
current liab/assets: within next 12 months
The original cost of the firm's assets held for use less accumulated depreciation
The income statement represents a snapshot of the firm at one point in time
False. The income statement represents the result of operations over a PERIOD of time
The balance sheet represents the result of operations over a point in time
TRUE
Tax expense as shown on the income statement is the amount of cash the firm paid to the taxing
authority during the period.
Free cash flow (FCF) is different from Cash flows from operations (CFO) because FCF:
represents cash flow after required investment
NOT part of the Sarbanes- Oxley Act
assigns specific accounting firms to audit a firm based on its industry
, all firms that wish to make an initial public offering of equity or debt for non-accredited investors
must first file public disclosure data with the SEC
fact
which of the following acts was instituted in an effort to help prevent bank runs
Federal Reserve Act of 1913
which of the following committees was created as a result of the Dodd Frank Act?
Financial Stability Oversight Council
which of the following acts limited types of products a consumer bank could offer or hold, creating a
wall between commercial banks and investment banks?
Glass- Steagall Banking Act of 1933
which of the following acts loosened the regulation on types of products financial institutions could
offer?
Garn .St. Garmain Act
FINRA
Private organization that regulates firms selling securities in the United States (SEC) *NOT Govt
GAAP
accounting standards allow for significant managerial discretion in reported financial statements
Suppose the inventory turnover of a company is higher than the industry. Based on this observation,
which of the following is most likely?
the firm has too little inventory resulting in lost sales or stock-outs
which of the following is NOT a characteristic of ordinary annuities?
payments are made at the beginning of each period
ordinary annuity
Do not payout at the beginning
what type of bond is tax exempt?
municipal bonds
Why are bonds the primary method for raising capital?
they avoid the costs of the intermediary
the amount repaid at the expiration date is called:
Par Value
Complete Solution
Secondary markets are where securities are initially offered to the public
FALSE
First place where securities are offered to the public
Auction market
Accounts payable represents money a firm owes to
Suppliers due to purchases made on credit
notes payable represents a loan from bank
Also require a formal loan agreement.
A/P refers to the amount of which is owed by a business to its supplier
The matching principle in accrual accounting requires that
revenues are matched to the expenses incurred to generate the revenues
The evolution of retained earnings is best described by
change in RE= Net income- Dividends
Net fixed assets represents
current liab/assets: within next 12 months
The original cost of the firm's assets held for use less accumulated depreciation
The income statement represents a snapshot of the firm at one point in time
False. The income statement represents the result of operations over a PERIOD of time
The balance sheet represents the result of operations over a point in time
TRUE
Tax expense as shown on the income statement is the amount of cash the firm paid to the taxing
authority during the period.
Free cash flow (FCF) is different from Cash flows from operations (CFO) because FCF:
represents cash flow after required investment
NOT part of the Sarbanes- Oxley Act
assigns specific accounting firms to audit a firm based on its industry
, all firms that wish to make an initial public offering of equity or debt for non-accredited investors
must first file public disclosure data with the SEC
fact
which of the following acts was instituted in an effort to help prevent bank runs
Federal Reserve Act of 1913
which of the following committees was created as a result of the Dodd Frank Act?
Financial Stability Oversight Council
which of the following acts limited types of products a consumer bank could offer or hold, creating a
wall between commercial banks and investment banks?
Glass- Steagall Banking Act of 1933
which of the following acts loosened the regulation on types of products financial institutions could
offer?
Garn .St. Garmain Act
FINRA
Private organization that regulates firms selling securities in the United States (SEC) *NOT Govt
GAAP
accounting standards allow for significant managerial discretion in reported financial statements
Suppose the inventory turnover of a company is higher than the industry. Based on this observation,
which of the following is most likely?
the firm has too little inventory resulting in lost sales or stock-outs
which of the following is NOT a characteristic of ordinary annuities?
payments are made at the beginning of each period
ordinary annuity
Do not payout at the beginning
what type of bond is tax exempt?
municipal bonds
Why are bonds the primary method for raising capital?
they avoid the costs of the intermediary
the amount repaid at the expiration date is called:
Par Value
