Wgu c214 exam stuvia Study guides, Class notes & Summaries

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

C214 WGU Exam Cram 2023-2024 Correct Questions &Pt - ANSWERSis the sold price Answers(SCORED A+)C214 WGU Exam Cram 2023-2024 Correct Questions & Answers(SCORED A+)C214 WGU Exam Cram 2023-2024 Correct Questions & Answers(SCORED A+)C214 WGU Exam Cram 2023-2024 Correct Questions & Answers(SCORED A+)With the assumption of no asset disposals, CFI will be equal to - ANSWERS1) change in Gross PP&E or 2) Change in Net PP&E plus depreciation expense.

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...

Statement of Cash Flows - AnswerShows 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) - AnswerCash 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) - AnswerCash flow that is generated from investments in long term assets. Cash Flow from Financing Activities (CFF) ...

Pt - ANSWERSis the sold price Pt-1 - ANSWERSis the bought price CFt - ANSWERSis the cash flow (coupons for bonds; dividends for stocks). Dollar Returns - ANSWERS= Pt - Pt-1 + CFt Cash Flow from Investing (CFI) - ANSWERS= Change in Net PP&E + Depreciation Expense Net PP&E - ANSWERS= Gross PP&E - Accumulated Depreciation With the assumption of no asset disposals, CFI will be equal to - ANSWERS1) change in Gross PP&E or 2) Change in Net PP&E plus depreciation expense. Dividends...

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...

How can a private firm appropriately maximize shareholder value? - ANSWERSBy making decisions that keep the control of the business with the owners Why are American regulators focused on international investing in a global marketplace? - ANSWERSBecause international investing in a global marketplace is the concern of American investors What is one of the two basic types of financial instruments? - ANSWERSBonds Which two effects does the unbundling and offshoring of production have on em...

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

Initial Outlay - answerThe total dollar amount to begin a project. Cost of Equity - answerHow much it costs a firm (in percentage terms) to use equity financing. From the investor's perspective, it is what they require given the riskiness/opportunity cost of the company. From the companies perspective, it is the same rate, but it is what it "costs" to attract those potential investors. It is the return they must give investors for them to invest with their company. American Depository R...

Coupon Rate - answerThe interest rate that a company promises to pay on bonds Market Rate - answerThe interest rate on other comparable bonds Par Value - answerThe amount payable on maturity of the bond Market rate - answerSame as YTM - Yield to Maturity Gordon Growth Model - answerAssumes stable growth rates and does not incorporate risk CAPM Model - answerAllows to determine expected return on stocks and incorporates risk How do public companies maximize shareholder value? - ...