Package Deal for WGU C214 Financial Management Concepts Practice Exam Questions and Answers with Verified Solutions Graded A 2024

What is included in an income statement - revenue, expenses, net income When is revenue recognized in income statement - as soon as product or service is delivered A company sold products in 2014 for $120,000 and collected $100,000 in cash in 2014 and the remainder in 2015. The company incurre...

Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) - F Stocks and bonds are two types of financial instruments (T/F) - T The matching principle in accrual accounting requires that: a. Revenues be recognized when the earnings process is complete and matches expen...

How can a private firm appropriately maximize shareholder value? - 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? - Because american investors are focused on international investing...

Economics is a subfield of Finance False Which of the following is not an example of firm capital? Financial markets Capital is defined as a financial asset. True Corporate finance is devoted to understanding various types of financial instruments. False Which of the following is an example ...

How can a private firm appropriately maximize shareholder value? - By increasing the firm’s stock price - By reducing the firm's labor - By making decisions that keep the control of the business with the owners By making decisions that keep the control of the business with the owners Why are...

Coupon Rate - The interest rate that a company promises to pay on bonds Market Rate - The interest rate on other comparable bonds Par Value - The amount payable on maturity of the bond Market rate - Same as YTM - Yield to Maturity Gordon Growth Model - Assumes stable growth rates and doe...

How can a private firm appropriately maximize shareholder value? - 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? - Because international investing in a global marketplace is the con...

Which will be larger: accrual taxes payable or accounting income tax expense - Accounting tax expense will be higher; actual taxes based on IRS rules will be lower Which financial ratios measure "efficiency"? - Asset turnover and Fixed Asset turnover Which ratio is the best measure of a firm...

The matching principle in accrual accounting requires that: a. Expenses are matched to revenue recognition. 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 enough to match expenses a The add...

1. The goal of the corporation is to: a. Maximize profits b. Maximize market share c. Maximize stock price d. Minimize risk - 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 o...

Statement of Cash Flows - 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) - Cash flow that a company generates as a result of day-to-day business operations. Deals with Current Assets a...

Characteristics of preferred stock includes - -dividends in arrears -dividends are cumulative -higher payoff claim in a BK (has first dibs in a BK) -considered "hybrid" (part stock/part bond) -no fixed maturity date -no voting rights -can skip dividend payments -dividends don't change year...

Trading on the NYSE is executed without a specialist (i.e. a market maker). True or False? - False Stocks and Bonds are two types of financial instruments. True or False? - True When revenue is matched with cost of sales in an Income statement it is called? - Matching principle Basic balanc...