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

C214 Financial Management (VCC2 Terms) Questions and Answers 100% correct 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 of firm capital? Cash Corporate finance focuses on the decision making by the manag...

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...

The goal of the corporation is to: - Answer-maximize stock price What makes an efficient market? - Answer-Competitive market, liquidity, transparency What is the relationship between risk and required return? - Answer-As risk increases, required return increases. What are the 3 main financial statements? - Answer-Income statement, the Balance Sheet., and the statement of cash flows Which financial statement reflects a POINT in time (not a period in time) - Answer-Balance sheet Wha...

How can a private firm appropriately maximize shareholder value? - Answer-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? - Answer-Because international investing in a global marketplace is the concern of American investors What is one of the two basic types of financial instruments? - Answer-Bonds If a company outsources the manufacturing of its products to a foreign count...

Corporate Finance - Answer-focuses on financial decision making by a firms management Investments - Answer-various types of financial instruments (stocks, bonds, etc) Banking or Financial Institutions - Answer-make money by paying depositors a smaller interest rate than the interest rate charged to borrowers Treasury Securities - Answer-generally bonds that are issued by the US government Corporate Bonds - Answer-firms borrowing from the public Stocks - Answer-a share of ownership...

Characteristics of preferred stock includes - Answer--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-after-year -used in start ups (IPO) Preferred stock dividends - Answer-can go without payment and pay in arrears the following year Characteristics of common stock are - Answer--voting ...

Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) - Answer-False Stocks and bonds are two types of financial instruments (T/F) - Answer-True The matching principle in accrual accounting requires that: - Answer-Revenues be recognized when the earnings process is complete and matches expenses to revenues recognized. A basic equation for the balance sheet is: - Answer-Equity = Assets - Liabilities Why is the Balance Sheet known as a permanent statement? -...

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 Expenses are matched to revenue recognition. The addition to retained earnings each year is: a. Net Income b. Net Income minus dividends c. Net Income plus dividends d. Net Income times the Payout Ratio ...

Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) - Answer-F Stocks and bonds are two types of financial instruments (T/F) - Answer-T 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 en...

WGU C214 Pre-Assessment - Updated December 2023-100% Correctly Solved How can a private firm appropriately maximize shareholder value? -Answer-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? -Answer-Because international investing in a global marketplace is the concern of American investors What is one of the two basic types of financial instruments? -Answer-Bonds What are t...

WGU C214 Pre-Assessment Exam Questions and Answers 2024 How can a private firm appropriately maximize shareholder value? -Answer-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? -Answer-Because international investing in a global marketplace is the concern of American investors What is one of the two basic types of financial instruments? -Answer-Bonds If a company outsources ...