WGU C214 Exam Questions & Answers 100% Verified by Experts

The goal of the corporation is to: - ANSWER-maximize stock price What makes an efficient market? - ANSWER-Competitive market, liquidity, transparency What is the relationship between risk and required return? - ANSWER-As risk increases, required return increases. What are the 3 main financial statements? - ANSWER-Income statement, the Balance Sheet., and the statement of cash flows Which financial statement reflects a POINT in time (not a period in time) - ANSWER-Balance sheet What is Revenue? - ANSWER-Amount generated by sale of products and services What is Expenses - ANSWER-Amount incurred to manufacture products What is Income? - ANSWER-The difference between Revenue and Expenses What are Assets? - ANSWER-Items that are owned by the company Land, building, equipment, machinery, supplies, inventory What's the difference between a long term asset and a short term asset? - ANSWER-Short term assets are expected to be converted to cash within one year, long term assets are typically more valuable but less liquid (projected to keep for more than a year)