WGU C214 Study guides, Class notes & Summaries

WGU C214 Financial Mgmt Pass the OA Questions and Answers (2023/2024) (Verified Answers)

Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) - ANSWERSF Stocks and bonds are two types of financial instruments (T/F) - ANSWERSTrue The matching principle in accrual accounting requires that: a. Revenues be recognized when the earnings process is complete and matches expenses to revenues recognized. b. Expenses are matched to the year in which they are incurred c. Revenues are matched to the year in which they are booked d. Revenues should be large...

C214 - Financial Management Exam Questions and Answers Trading on the NYSE is executed without a specialist (i.e. a market maker). - Answer- False Accruals - Answer- are expenses a firm owes but hasn't paid yet. (Like wages - the employee has worked, but his check hasn't been cut yet.) Which of the following best describes the guiding principle for revenue recognition within accrual accounting system: - Answer- Revenue is reported when the earnings process is complete A high-quality c...

C214 Financial Management Exam Questions and Answers Finance is a subfield with in - Answer- Economics Which of the following is not an example of firm capital? - Answer- Financial Markets Capital is defined as a - Answer- financial asset Corporate finance is devoted to understanding various types of - Answer- financial instruments Which of the following is an example of firm capital? - Answer- Cash Corporate finance focuses on the decision making by the - Answer- Management What are th...

WGU C214 Financial Management Exam Questions and Answers Net Income = - Answer- Revenues - Expenses Revenues - Cost of Goods Sold (COGS) - Answer- Gross Profit Gross Profit - Operating Expenses - Answer- EBIT EBIT = - Answer- Sales - Costs - Depreciation EBIT = - Answer- Operating Profit or Operating Income EBIT - Interest Expense = - Answer- Earnings Before Taxes Earnings before Taxes - Tax Expense = - Answer- Net Income (NI) Retained Earnings - Answer- End RE = Beg RE + NI - Dividends...

C214 - Financial Management Exam Questions and Answers 100% Pass Accounting - Answer- The business function responsible for creating the historical financial statements. Accounts Payable - Answer- A current liability that represents any money the firm owes suppliers and other firms. Typically the firm does not pay interest on accounts payable. Accounts Receivable (AR) - Answer- A type of current asset which represents any money owed to the firm for services rendered. Accounts Receivable ...

C214 Financial Management Concepts Exam Questions and Answers 1. The goal of the corporation is to: a. Maximize profits b. Maximize market share c. Maximize stock price d. Minimize risk - Answer- c. Maximize stock price 2. Risk premium is best described as a. Return on risky securities b. Compensation for risk-taking c. Return on stocks d. Expected return on securities - Answer- b. Compensation for risk-taking 3. What is the relationship between risk and required return? a. The two ...

WGU - C214: Financial Management Exam Questions and Answers If accounts receivable increases, what is the impact on CFO? - Answer- CFO decreases Are actual taxes paid the same as how on the GAAP income statement? - Answer- No. Actual Taxes = IRS Rules Income Statement = GAAP Which decisions require using subjective estimates? - Answer- Economic life of a new asset. If there is a 30% change of a recession, what is the probability of expansion? - Answer- 70% *The sum of probabilities mus...

c214 financial management exam questions and answers intrinsic value - Answer- the value of an asset computed with an economic model. Based on the cash flows generated from the security, intrinsically it is work XX amount Terminal Cash Flow (TCF) - Answer- cash flows that result from winding down a project at the end of its life; does no include final year's differnetial cash flow. EFN - Answer- external financing or funds needed. Another name for DFN bond rating - Answer- a rating assig...

WGU - C214 Financial Management – Final Exam Questions and Answers Statement of Cash Flows - Answer- Shows the change in cash balance for a period of time. Focuses only on items where cash is received, or cash is paid. Cash Flow from Operating Activities (CFO) - Answer- Cash flow that a company generates as a result of day-to-day business operations. Deals with Current Assets and Current Liabilities. Cash Flow from Investing Activities (CFI) - Answer- Cash flow that is generated from i...

c214 Financial Management WGU Exam Questions and Answers 100% Pass Trading on the NYSE is executed without a specialist T or F - Answer- False What are 2 types of financial instruments - Answer- Stocks and BondsM When revenue is matched with cost of sales in an income statement it is called? - Answer- matching principle A high quality customer just purchased $500,000 worth of product from your company. The contract calls for immediate delivery of this product with a cash payment of $300,...

Which will be larger: actual taxes payable or accounting income tax expense - Answer-Accounting tax expense will be higher; actual taxes based on IRS rules will be lower Which cash flow measures the change in long term assets? - Answer-Cash flow investing Which financial ratios measure "efficiency"? - Answer-Asset turnover and Fixed Asset turnover Which ratio is the best measure of a firm's ability to pay bills? - Answer-Quick ratio Which decision requires using subjective estimat...