D366 - FINANCIAL STATEMENT
ANALYSIS: PRACTICE QUESTIONS
(WGU BSFIN: D366 - FINANCIAL
STATEMENT ANALYSIS. PRACTICE
QUESTIONS INSPIRED BY PA)
QUESTIONS WITH PASSED ANSWERS
100% CORRECT!!
- of
81 Term How should enterprise value be estimated for a lending contract?Give this one a try later!Calculating total assets and liabilities Estimating future sales growth 1 / 4
Using cash inflows and expenses Analyzing market share and competition Don't know?2of 81 Term What happens to retained earnings when dividends are paid out?Give this one a try later!Retained earnings decrease The market value is decreased Par value decreases The number of shares are decreased Don't know?3of 81 Term Why is it important to assess a company's liquidity and solvency before providing a loan?Give this one a try later! 2 / 4
To analyze the competitive landscape of the industry To assess the company's market share and growth potential To evaluate the effectiveness of marketing strategies To determine the firm's ability to pay off long- term and short-term debt Don't know?4of 81 Term How does increasing leverage affect a company's return on equity (ROE)?Give this one a try later!It always decreases roe regardless of asset returns It has no effect on roe It can increase ROE if the return on assets exceeds the cost of debt It guarantees higher profits for the company Don't know?5of 81 Term 3 / 4
How does an increase in accounts payable affect the statement of cash flows?Give this one a try later!It has no impact on cash flow from operations It decreases cash flow from operations due to higher expenses It increases cash flow from operations by delaying cash payments It reduces cash flow from investing activities Don't know?6of 81 Term How does inventory turnover affect a company's cash flow?Give this one a try later!Higher inventory turnover decreases cash flow Working capital will increase Higher inventory turnover improves cash flow Higher inventory turnover increases inventory costs Don't know?
- / 4