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D 659 / D659 PRE - ASSESSMENT & FINAL EXAM
(LATEST UPDATES STUDY BUNDLE
PACKAGE WITH SOLUTIONS) ASSESSING AND
MONITORING STUDENT LEARNING | QUESTIONS AND
ANSWERS | GRADE A | 100% CORRECT (VERIFIED
ANSWERS) - WGU
Which principle of ratio analysis means that ratios are open for
analyst interpretation, are not governed by rules, and allow
creativity to work according to a particular company or asset?
.....ANSWER.....Flexibility
Comparing a firm's ratios across time. .....ANSWER.....Trend
Analysis
Comparing a firm's financial ratios to other firms' ratios or
industry averages. .....ANSWER.....Cross-sectional Analysis
, Page 2 of 10
As an active investor, Maria is analyzing her portfolio to decide
if there are any stocks she should remove from her pool of
financial securities. A company she has invested in, Quiet Flag
Industries, just released its annual report.
Which kind of method should Maria use to see if the company
has improved? .....ANSWER.....Trend analysis
An investment analyst is concerned about a construction
company's ability to sell its inventory to meet current obligations,
because much of the inventory (commercial buildings) it builds
and sells takes longer than a year to construct.
Which ratio should this analyst use to consider the effect of the
firm's inventory on the firm's ability to meet current obligations?
.....ANSWER.....Quick ratio
Why are ratios considered flexible? .....ANSWER.....Because they
are not regulated and can be changed or invented according to
a firm's needs
D 659 / D659 PRE - ASSESSMENT & FINAL EXAM
(LATEST UPDATES STUDY BUNDLE
PACKAGE WITH SOLUTIONS) ASSESSING AND
MONITORING STUDENT LEARNING | QUESTIONS AND
ANSWERS | GRADE A | 100% CORRECT (VERIFIED
ANSWERS) - WGU
Which principle of ratio analysis means that ratios are open for
analyst interpretation, are not governed by rules, and allow
creativity to work according to a particular company or asset?
.....ANSWER.....Flexibility
Comparing a firm's ratios across time. .....ANSWER.....Trend
Analysis
Comparing a firm's financial ratios to other firms' ratios or
industry averages. .....ANSWER.....Cross-sectional Analysis
, Page 2 of 10
As an active investor, Maria is analyzing her portfolio to decide
if there are any stocks she should remove from her pool of
financial securities. A company she has invested in, Quiet Flag
Industries, just released its annual report.
Which kind of method should Maria use to see if the company
has improved? .....ANSWER.....Trend analysis
An investment analyst is concerned about a construction
company's ability to sell its inventory to meet current obligations,
because much of the inventory (commercial buildings) it builds
and sells takes longer than a year to construct.
Which ratio should this analyst use to consider the effect of the
firm's inventory on the firm's ability to meet current obligations?
.....ANSWER.....Quick ratio
Why are ratios considered flexible? .....ANSWER.....Because they
are not regulated and can be changed or invented according to
a firm's needs
