WGU C214 Financial Management OA Study Set
Trading on the NYSE is executed without a specialist (i.e. a market maker). True or False?answer
... [Show More] False
Stocks and Bonds are two types of financial instruments. True or False?answer True
When revenue is matched with cost of sales in an Income statement it is called?answer Matching principle
Basic balance sheet equation is what?answer Equity = Assets - Liabilities
Why is the balance sheet known as the permanent statement?answer Because the other statements are reset at the end of the fiscal year.
How do you calculate the change in retained earnings?answer Net income-dividends
Sales - Cost of Sales - other expenses =answer Operating Income or EBiT
Name four accounts that are part of total assets?answer Cash, Accounts receivable, inventory, long term assets
Name three accounts that are part of total liabilities?answer Bonds, accounts payable and mortgage
Name four accounts that are part of current assets?answer Inventory, cash, accounts receivable and short term investments.
Name three accounts that are only included in cash flow from financing?answer Common stock, dividends paid and bonds payable
Define the statement of cash flows?answer Calculated for the same period of time as the incomes statement is calculated based on the income statement and changes in the balance sheet is one of the three basic accounting statements.
When fixed assets increase what happens to cash?answer Cash will decrease
What is the purpose of the statement of cash flows?answer Explains the change in cash over the course of the specified time frame.
Suppose the inventory turnover of a company is higher than the industry. Based on this observation, which of the following is most likely?answer The firm has too little inventory resulting in lost sales or stock-outs.
If a company wishes to obtain a bank loan, will it want to have a higher current ratio or a lower current ratio?answer Higher
The Operating Income Return on Investment (OIROI) uses what elements on the income statement?answer EBIT and total assets
Why would a company be interested in the Total Asset Turnover (TAT) ratio?answer To see how efficient are at producing sales
What annual interest will be paid for a zero coupon bond?answer 0%
What is the most significan [Show Less]