WGU C214 Pre-Assement Questions and Correct
Answers | Latest Update
How can a private firm appropriately maximize shareholder value? Ans:
By making decisions that keep the control of the business with the
owners
Why are American regulators focused on international investing in a
global marketplace? Ans: Because international investing in a global
marketplace is the concern of
Assignment Expert
American investors
What is one of the two basic types of financial instruments? Ans: Bonds
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If a company outsources the manufacturing of its products to a foreign
country, what are the likeliest
outcomes? Ans: Consumer prices will decrease and Domestic
2026
employment will decrease.
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What is true about the content and structure of a balance sheet? Ans: It
reports the assets, liabilities, and equity at a point in time.
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? Ans: The change will decrease cash flows
from operations by $5,000.
Which statement accurately explains the recognition of revenues and
expenses under accounting income
, 2 for specific request mail
and income for tax purposes? Ans: Revenues and expenses may be
recognized in one period for accounting income purposes and in a
different period for income tax purposes.
Selected Data for 20x2 for ABD Inc.
Netincome $ 1,000
Depreciation expense $ 300
Change in operating assets $ 600
Change in net property, plant, and equipment$ 5,000
Assignment Expert
Changes in long-term liabilities $ 1,000
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Dividends paid $ 200
What is the firm's cash flow from investments, using the data above and
assuming no asset disposals? Ans: $5,300 outflow
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What is the basic equation for a balance sheet? Ans: Assets = Liabilities +
Equity
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What do cash flows from investing activities generally relate to? Ans: A
firm's purchase and sale of long-term assets
Which transaction is reflected in cash flow from operating activities?
Ans: Cash sales to customers
What does free cash flow represent? Ans: Cash available for distribution
after funding required reinvestment
An analyst is comparing the ratios of two firms and needs to address
timing differences. What would be considered an example of a timing
difference between the two firms? Ans: The firms have different fiscal
years.
A company's year-end balance sheetfor 2013 shows the following: