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WGU C213 Final Exam Accounting For Decision Makers Version 1 & 2 Newest 2025 Complete 200 Questions And Correct Detailed Answers (Verified Answers)|Already Graded A+
The SEC Securities & Exchange Commission requires public companies
to do the following:
- File audited financial statements with SEC
- Change CEOs on a regular basis
- Regulates the Money Supply
- Prohibits foreign bribery - ANSWER-a
What does the Sarbanes-Oxley Act require companies to do?
- Have a board of directors
- Register all foreign sales
- Make estimated tax payments
- Have internal control audits - ANSWER-d
If a company produces and sells a product only in the U.S., what international developments may affect its sales?
- Fluctuating exchange rates 1 / 4
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- Imports of competing products
- Immigration policy
- Inflation in Europe - ANSWER-b
The SEC requires the following to file audited financial statements:
- All companies
- All for-profit companies
- All publicly-traded corporations
- There is no such requirement - ANSWER-c
Which best describes conceptually the valuation of all financial assets in financial markets?
- Based on opinions of Wall Street analysts
- The NPV of anticipated cash flows
- Based on the book value of assets and liabilities
- None of the above - ANSWER-b
Which accurately describes an "efficient" market?
- Prices are low
- Prices do not fluctuate
- Deviations from "fair value" are quickly eliminated 2 / 4
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- "Hot stocks" are the best investment - ANSWER-c
If a firm's goal is to maximize stockholder wealth, which would the firm avoid?
- Stock buybacks
- Risky long-term investments
- Investments with negative NPV
- Transparency in financial statements - ANSWER-c
If you wanted to evaluate a non-public company, what sources would you use?
- The financial statements filed with the SEC
- The latest stock price quoted in the Wall Street Journal
- The PE of a comparable public company
- The book value of equity in its balance sheet - ANSWER-c
Which section of the Statement of Cash Flows describes the production and sales of the firm's product?
- Cash Flow Operations
- Cash Flow Investing
- Cash Flow Financing.
- Cash Flow Securities - ANSWER-a 3 / 4
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For calculating cash flows, why is depreciation added to Net Income?
- To offset taxes
- Depreciation is a non-cash deduction
- To determine pre-tax income
- None of the above - ANSWER-b
The fundamental concept underlying the valuation of all financial assets
is:
- The application of the PE ratio
- Use of the Gordon Model
- The present value of anticipated cash flows.
- The future value of cash flows - ANSWER-c
What explains the size of the yield spread of junk bonds over Treasury?
- It is the value of the expected default loss
- It depends the firm'a profit
- It is the probability of default
- It is a "psychological' reaction of investors. - ANSWER-a
What does Beta measure?
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