WGU C201 BUSINESS ACUMEN/ACTUAL EXAM 58 QUESTIONS AND
100% COMPLETE SOLUTION/A+GRADE GUARANTEED
Which type of business is Walmart?
a. Service
b. Merchandising
c. Manufacturing - ANSWER/b. Merchandising
Which form of business is considered the most complex to form?
a. Limited Liability Company
b. Corporation
c. Partnership
d. Sole Proprietorship - ANSWER/b. Corporation
Which of the following is not a characteristic of a corporation?
a. Corporations are organized as separate legal taxable entities.
b. Ownership is divided into shares of stock.
c. A corporation's shareholders are personally liable for the corporation's actions.
d. Corporations experience relative ease in obtaining large amounts of resources by
issuing stock. - ANSWER/c. A corporation's shareholders are personally liable for the
corporation's actions.
Which of the following are business stakeholders?
a. Stockholders
b. Suppliers
c. Customer
d. All of these are stakeholders - ANSWER/d. All of these are stakeholders
Which type of activity is purchasing equipment?
a. Financing
b. Investing
c. Operating - ANSWER/b. Investing
Which type of activity is selling equipment?
a. Financing
b. Investing
c. Operating - ANSWER/b. Investing
Which of the following is an example of a financing cash flow?
a. Selling equipment
b. Purchasing inventory
c. Paying rent expense
d. Paying dividends
e. Two of the above are financing cash flows - ANSWER/d. Paying dividends
Which financial statement reports the revenues and expenses for a period of time?
, a. Balance Sheet
b. Income Statement
c. Statement of Cash Flows
d. Statement of Stockholders' Equit - ANSWER/b. Income Statement
Which financial statement reports the financial condition of a company as of a point in
time?
a. Balance Sheet
b. Income Statement
c. Statement of Cash Flows
d. Statement of Stockholders' Equit - ANSWER/a. Balance Sheet
What order is used to list assets on the Balance Sheet?
a. Liquidity: Least liquid to most liquid
b. Liquidity: most liquid to least liquid
c. Magnitude: Smallest in value to biggest in value
d. Magnitude: Biggest in value to smallest in valu - ANSWER/b. Liquidity: most liquid to
least liquid
What order is used to list operating expenses on the Income Statement?
a. Magnitude: Smallest in value to biggest in value
b. Magnitude: Biggest in value to smallest in value
c. Liquidity: Least liquid to most liquid
d. Liquidity: most liquid to least liquid - ANSWER/b. Magnitude: Biggest in value to
smallest in value
Which of the below is false with regards to the financial statements? (If a, b, and c are
all
true, select D.)
a. Net Income on the Income Statement should be the same as the net cash flows
reported on the Statement of Cash Flows.
b. The Cash balance on the Balance Sheet should be the same as the balance of cash
on
the Statement of Cash Flows.
c. The equity balances on the balance sheet should be the same as the balances on the
Statement of Stockholders' Equity.
d. None of the above are false. All are true - ANSWER/a. Net Income on the Income
Statement should be the same as the net cash flows
The statement of cash flows is integrated with the balance sheet because:
a. The cash at the beginning of the period plus or minus the cash flows from operating,
investing, and financing activities equals the end of period cash reported on the
balance sheet.
b. The cash at the beginning of the period plus or minus the net income equals the end
of
period cash reported on the balance sheet.
100% COMPLETE SOLUTION/A+GRADE GUARANTEED
Which type of business is Walmart?
a. Service
b. Merchandising
c. Manufacturing - ANSWER/b. Merchandising
Which form of business is considered the most complex to form?
a. Limited Liability Company
b. Corporation
c. Partnership
d. Sole Proprietorship - ANSWER/b. Corporation
Which of the following is not a characteristic of a corporation?
a. Corporations are organized as separate legal taxable entities.
b. Ownership is divided into shares of stock.
c. A corporation's shareholders are personally liable for the corporation's actions.
d. Corporations experience relative ease in obtaining large amounts of resources by
issuing stock. - ANSWER/c. A corporation's shareholders are personally liable for the
corporation's actions.
Which of the following are business stakeholders?
a. Stockholders
b. Suppliers
c. Customer
d. All of these are stakeholders - ANSWER/d. All of these are stakeholders
Which type of activity is purchasing equipment?
a. Financing
b. Investing
c. Operating - ANSWER/b. Investing
Which type of activity is selling equipment?
a. Financing
b. Investing
c. Operating - ANSWER/b. Investing
Which of the following is an example of a financing cash flow?
a. Selling equipment
b. Purchasing inventory
c. Paying rent expense
d. Paying dividends
e. Two of the above are financing cash flows - ANSWER/d. Paying dividends
Which financial statement reports the revenues and expenses for a period of time?
, a. Balance Sheet
b. Income Statement
c. Statement of Cash Flows
d. Statement of Stockholders' Equit - ANSWER/b. Income Statement
Which financial statement reports the financial condition of a company as of a point in
time?
a. Balance Sheet
b. Income Statement
c. Statement of Cash Flows
d. Statement of Stockholders' Equit - ANSWER/a. Balance Sheet
What order is used to list assets on the Balance Sheet?
a. Liquidity: Least liquid to most liquid
b. Liquidity: most liquid to least liquid
c. Magnitude: Smallest in value to biggest in value
d. Magnitude: Biggest in value to smallest in valu - ANSWER/b. Liquidity: most liquid to
least liquid
What order is used to list operating expenses on the Income Statement?
a. Magnitude: Smallest in value to biggest in value
b. Magnitude: Biggest in value to smallest in value
c. Liquidity: Least liquid to most liquid
d. Liquidity: most liquid to least liquid - ANSWER/b. Magnitude: Biggest in value to
smallest in value
Which of the below is false with regards to the financial statements? (If a, b, and c are
all
true, select D.)
a. Net Income on the Income Statement should be the same as the net cash flows
reported on the Statement of Cash Flows.
b. The Cash balance on the Balance Sheet should be the same as the balance of cash
on
the Statement of Cash Flows.
c. The equity balances on the balance sheet should be the same as the balances on the
Statement of Stockholders' Equity.
d. None of the above are false. All are true - ANSWER/a. Net Income on the Income
Statement should be the same as the net cash flows
The statement of cash flows is integrated with the balance sheet because:
a. The cash at the beginning of the period plus or minus the cash flows from operating,
investing, and financing activities equals the end of period cash reported on the
balance sheet.
b. The cash at the beginning of the period plus or minus the net income equals the end
of
period cash reported on the balance sheet.
