WGU C214 Financial Management Exam
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
Why are American regulators focused on international investing in
a global marketplace?
- Because international investing in a global marketplace is the
concern of American investors
- Because an exclusively domestically focused regulatory approach is still effective
- Because weaving international concerns into domestic policy is
cost-effective
- Because other jurisdictions have the same priorities and solutions as the United States
What is one of the two basic types of financial instruments?
- Checking accounts
- Bonds
- Euros
- Hedge funds
What are the likeliest outcomes if a company outsources the
manufacturing of its products to a foreign country?
Choose 2 answers.
- Consumer prices will decrease.
- Tariffs will decrease.
- Domestic wages will increase.
- Production capacity will decrease.
- Domestic employment will decrease.
What do the content and structure of a balance sheet report?
- The gains and losses at a point in time
- The revenues and expenses for a period of time
- The assets, liabilities, and equity at a point in time
- The expenses, assets, and liabilities for a period 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?
- The change will decrease cash flows from operations by $2,500.
- The change will increase cash flows from operations by $2,500.
- The change will increase cash flows from operations by $5,000.
- The change will decrease cash flows from operations by $5,000.
Which statement accurately explains the recognition of revenues
and expenses under accounting income and income for tax purposes?
Revenue and expenses recognized must be matched with assets.
Revenue and expenses recognized must be matched with liabilities.
By making decisions that keep the control of the business with the
owners
Because international investing in a global marketplace is the
concern of American investors
Bonds
Consumer prices will decrease.
Domestic employment will decrease.
The assets, liabilities, and equity at a point in time
The change will decrease cash flows from operations by $5,000.