Exam (elaborations)
WGU C214 Concepts Only Multi Choice Version with 100- correct answers
WGU C214 Concepts Only Multi Choice Version with 100- correct answers
[Show more]
Content preview
WGU C214 Concepts Only MultiChoice Version 2025-2026 with
100% correct answers
Trading on the NYSE is executed without a specialist (i.e. a market
maker). (T/F) - answer False
Stocks and bonds are two types of financial instruments (T/F) -
answer True
The matching principle in accrual accounting requires that: - answer
Revenues be recognized when the earnings process is complete and
matches expenses to revenues recognized.
A basic equation for the balance sheet is: - answer Equity = Assets
- Liabilities
Why is the Balance Sheet known as a permanent statement? -
answer Because the other statements are reset at the end of the
fiscal year
How do you calculate the change in Retained Earnings? - answer
Net Income - Dividends
Which of the following is generally true? - answer Operating
Income and EBIT are the same
Which components are part of total assets? - answer Cash
Accounts Receivable, Inventory, Long Term Assets
,Which components are part of current assets? - answer Inventory,
Cash, Accounts Receivable, Short Term Investments
Which components are part of Total Liabilities? - answer Bonds,
Accounts Payable, Mortgage
When Fixed Assets increase what happens to Cash? - answer Cash
decreases
Which is the purpose of the statement of cash flows? - answer
explains the change in cash balance for one period of time
The OIROI (Operating Income Return on Investment) uses what
elements on the income statement? - answer EBIT, Total Assets
Why would a company be interested in the TAT-Total Asset Turnover-
ratio?
a - answer How efficient assets are at producing sales
Which of the following gives the largest effective rate (APY) -
answer 18.6% compounded daily
What does the beta coefficient represent? - answer It is a
statistically-derived measure of volatility
Why is depreciation expense taken out of the net income
calculation, yet added back at the end? - answer Because
depreciation expense is tax deductible
Why is the NPV preferred over the IRR? Pick Two - answer 1-It
measures the dollar value 2- It is harder to calculate
, What does the Degree of Financial Leverage indicate? - answer The
reliance on debt
If a company has a high degree of financial leverage, what does that
tell us about the firm's risk profile? - answer Higher profits to
shareholders
What is the cash cycle? - answer The amount of time to regenerate
cash
Why is float important to understand? - answer To time cash
expenditures
What should a company do to manage its working capital? - answer
Collect quickly and pay slowly
What would be a source of information to determine Replacement
Cost? - answer Building Appraisal
What does the Sarbanes-Oxley Act require companies to do? -
answer Have internal control audits
FINRA (Financial Industry Regulatory Authority) does the following:
(pick one) - answer Prosecutes naughty stock brokers
If a product is made 100% domestically, what can affect its domestic
market? - answer International competition
If a company makes its product in a foreign country where labor
costs are much lower, what happens? - answer Profits go up and
domestic employment decreases.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BRAINBOOSTERS. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
85169 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now