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(WGU C214) – PA Financial Management 1.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- ANS By making decisions that keep the control of the business with the owners 2.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 1 / 4
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-Because weaving international concerns into domestic policy is cost- effec- tive -Because other jurisdictions have the same priorities and solutions as the United States ANS Because international investing in a global marketplace is the con- cern of American investors 3.What is one of the two basic types of financial instruments?-Checking accounts -Bonds -Euros -Hedge funds ANS Bonds 4.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. 2 / 4
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-Tariffs will decrease.-Domestic wages will increase.-Production capacity will decrease.-Domestic employment will decrease.ANS Consumer prices will decrease. Domestic employment will decrease.
5.What do the content and structure of a balance sheet report? 3 / 4
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-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 ANS The assets, liabilities, and equity at a point in time 6.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.ANS The change will decrease cash flows from operations by $5,000.
7.Which statement accurately explains the recognition of revenues and ex- penses under accounting income and income for tax purposes?
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