Objective Assessment Exam

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WGU C214 Financial Management Objective Assessment Exam Questions and Answers (Verified Answers) 1.The stock price of a company increases and the market is deemed

efficient. What assumption can be made?: //

ANS A new, patented, product was introduced to the market. //////

2.2. Which statement is true about how the global market affects the U.S.: -

/// ANS Foreign investors and fund managers make decisions based on financial reporting standards developed and financial statements audited overseas./////////

3.3. What are secondary markets?:

ANS Markets where securities are traded subsequent to the initial offering. ////// 4.A special interest group in the U.S. has been lobbying intensely for protec- tionism through increased tariffs and trade restrictions, with the 1 / 2

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argument that it will save jobs in the industry they represent. What is the

most likely result if they are successful?: ANS A. Employees and

shareholders of the domestic industry that produce the protective goods will be hurt and the nation will benefit.

5.5. What do the content and structure of a balance sheet report

ANS?: the assets, liabilities, and equity at a point in time

6.6. What is the basis used to compute a company's income tax expense?:

-

//////

ANS Taxes payable.//////////

7.7. What is the firm's cash flow from financing, using the data

above? Net Income $1000 Depreciation Expense $300 Change in operating assets $600 Change in net PP&E $5000 Change in long-term Liabilities $1000

Dividends Paid $200: /////

ANS $800 inflow //////// 8.A company reported an increase in accounts payable of $2000 for the current year. Half of this amount is expected to be paid next period. How will this change in accounts payable be reported on the statement of

cash flows?: /////////////

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