WGU Finance Pre Assessment Exam with Guaranteed Accurate Answers

Why are American regulators focused on international investing in a global marketplace? - correct answer Because international investing in a global marketplace is the concern of American investors What are the likeliest outcomes if a company outsources the manufacturing of its products to a foreign company? - correct answer 1. Consumer prices will decrease 2. Domestic employment will decrease How can a private firm appropriately maximize shareholder value? - correct answer By making decisions that keep the control of the business with the owners What is one of the two basic types of financial instruments? - correct answer Bonds A company reported an increase in AR of $5000 during the recent period. Half of this amount is expected to be collected next period. How will this change in AE affect the cash flows from the operating activities section? - correct answer The change will decrease cash flows from operations by $5,000 Selected data for 20x2 for ABD Inc. Net Income $1000 Depreciation Exp $300 Change in Op Assets $600 Change in Net PPE $5000 Change in LT Liabilities $1000 Dividends Paid $200 What is the firm's cash flow from investments, using the data above and assuming no asset disposals? - correct answer $5300 outflow, Change in Net PPE and Depreciation Expense What do cash flows from investing activities generally relate to? - correct answer A firm's purchase and sale of long-term assets Which transaction is reflected in cash flow from operating activities? - correct answer Cash sales to customers What does free cash flow represent? - correct answer Cash available for distribution after funding required reinvestment What do the content and structure of a balance sheet report? - correct answer The assets, liabilities, and equity at a point in time Which statement accurately explains the recognition of revenues and expenses under accounting income and income for tax purposes? - correct answer Revenues and expenses may be recognized in one period for accounting income purposes and in a different period for income tax purposes. What is the basic equation of a balance sheet? - correct answer Assets = Liabilities + Equity An analyst is comparing the ratios of two firms and needs to address timing differences.