WGU
Financial-Management
Q1:
In the statement of cash flows, what is the most commonly used method by financial analysts to calculate cash flows from operations (CFO)?
○
A
The direct method○
B
The indirect method○
C
The asset disposal method○
D
The balance sheet method
WGU
Financial-Management
Q2:
What costs are considered part of an asset's initial investment?
○
A
Discounted salvage value○
B
Delivery and installation○
C
Depreciation○
D
Market research
WGU
Financial-Management
Q3:
What is the usual impact of high asset tangibility on capital structure?
○
A
Increased debt capacity due to assets serving as collateral○
B
Higher cost of debt due to increased risk of asset value fluctuation○
C
Preference for hybrid securities to leverage tangible assets○
D
Easier access to equity markets due to tangible collateral
WGU
Financial-Management
Q4:
A building owner is undertaking a weatherization project. The owner will make a one-time investment of $410,000 for caulking, sunshades, and smart thermostats. Annual utility savings are projected to be:
Year 1: $125,000
Year 2: $125,000
Year 3: $140,000
Year 4: $140,000
Year 5: $160,000
What is the payback period, in years? (Round up)
○
A
2○
B
3○
C
4○
D
5
WGU
Financial-Management
Q5:
Which ratio measures a company's ability to convert its receivables into cash?
○
A
Current ratio○
B
Receivables turnover○
C
Inventory turnover○
D
Working capital ratio