WGU C214 CONCEPTS ONLY MULTI CHOICE
VERSION EXAM QUESTIONS WITH CORRECT
ANSWERS 2026
Trading Pon Pthe PNYSE Pis Pexecuted Pwithout Pa Pspecialist P(i.e. Pa Pmarket Pmaker). P(T/F) P-
PCORRECT PANSWER P- PFalse
Stocks Pand Pbonds Pare Ptwo Ptypes Pof Pfinancial Pinstruments P(T/F) P- PCORRECT PANSWER P-True
The Pmatching Pprinciple Pin Paccrual Paccounting Prequires Pthat: P- PCORRECT PANSWER P-
Revenues Pbe Precognized Pwhen Pthe Pearnings Pprocess Pis Pcomplete Pand Pmatches Pexpenses Pto
Prevenues Prec Pognized.
AAbasic Pequation Pfor Pthe Pbalance Psheet Pis: P- PCORRECT PANSWER P-Equity P= PAssets P- PLiabilities
Why Pis Pthe PBalance PSheet Pknown Pas Pa Ppermanent Pstatement? P- PCORRECT
PANSWER P- PBecause Pthe Pother Pstatements Pare Preset Pat Pthe Pend Pof Pthe Pfiscal
Pyear
How Pdo Pyou Pcalculate Pthe Pchange Pin PRetained PEarnings? P- PCORRECT PANSWER P-Net PIncome P-
PDividends
Which Pof Pthe Pfollowing Pis Pgenerally Ptrue? P- PCORRECT PANSWER P-Operating PIncome Pand PEBIT Pare
Pthe Psame
Which Pcomponents Pare Ppart Pof Ptotal Passets? P- PCORRECT
PANSWER P- PCash PAccounts PReceivable, PInventory, PLong PTerm
PAssets
,Which Pcomponents Pare Ppart Pof Pcurrent Passets? P- PCORRECT
PANSWER P- PInventory, PCash, PAccounts PReceivable, PShort PTerm
PInvestments
Which Pcomponents Pare Ppart Pof PTotal PLiabilities? P- PCORRECT
PANSWER P- PBonds, PAccounts PPayable, PMortgage
When PFixed PAssets Pincrease Pwhat Phappens Pto PCash? P- PCORRECT PANSWER P-Cash Pdecreases
, Which Pis Pthe Ppurpose Pof Pthe Pstatement Pof Pcash Pflows? P- PCORRECT
PANSWER P- Pexplains Pthe Pchange Pin Pcash Pbalance Pfor Pone Pperiod Pof
Ptime
The POIROI P(Operating PIncome PReturn Pon PInvestment) Puses Pwhat Pelements Pon Pthe Pincome
Pstatement? P- PCORRECT PANSWER P-EBIT, PTotal PAssets
Why Pwould Pa Pcompany Pbe Pinterested Pin Pthe PTAT-Total PAsset
PTurnover-ratio? Pa P- PCORRECT PANSWER P-How Pefficient Passets Pare Pat
Pproducing Psales
Which Pof Pthe Pfollowing Pgives Pthe Plargest Peffective Prate P(APY) P- PCORRECT
PANSWER P- P18.6% Pcompounded Pdaily
What Pdoes Pthe Pbeta Pcoefficient Prepresent? P- PCORRECT PANSWER P-It Pis Pa
Pstatistically- Pderived Pmeasure Pof Pvolatility
Why Pis Pdepreciation Pexpense Ptaken Pout Pof Pthe Pnet Pincome Pcalculation, Pyet Padded Pback Pat
Pthe Pend? P- PCORRECT PANSWER P-Because Pdepreciation Pexpense Pis Ptax Pdeductible
Why Pis Pthe PNPV Ppreferred Pover Pthe PIRR? PPick PTwo P- PCORRECT PANSWER P-1-It Pmeasures Pthe
Pdollar Pvalue P2- PIt Pis Pharder Pto Pcalculate
What Pdoes Pthe PDegree Pof PFinancial PLeverage Pindicate? P- PCORRECT PANSWER P-The Preliance Pon
Pdebt
If Pa Pcompany Phas Pa Phigh Pdegree P of Pfinancial Pleverage, Pwhat Pdoes Pthat Ptell Pus Pabout Pthe Pfirm's
Prisk Pprofile?
- PCORRECT PANSWER P-Higher Pprofits Pto Pshareholders
What Pis Pthe Pcash Pcycle? P- PCORRECT PANSWER P-The Pamount Pof Ptime Pto Pregenerate Pcash
Why Pis Pfloat Pimportant Pto Punderstand? P- PCORRECT PANSWER P-To Ptime Pcash Pexpenditures
What Pshould Pa Pcompany Pdo Pto Pmanage Pits Pworking Pcapital? P- PCORRECT
VERSION EXAM QUESTIONS WITH CORRECT
ANSWERS 2026
Trading Pon Pthe PNYSE Pis Pexecuted Pwithout Pa Pspecialist P(i.e. Pa Pmarket Pmaker). P(T/F) P-
PCORRECT PANSWER P- PFalse
Stocks Pand Pbonds Pare Ptwo Ptypes Pof Pfinancial Pinstruments P(T/F) P- PCORRECT PANSWER P-True
The Pmatching Pprinciple Pin Paccrual Paccounting Prequires Pthat: P- PCORRECT PANSWER P-
Revenues Pbe Precognized Pwhen Pthe Pearnings Pprocess Pis Pcomplete Pand Pmatches Pexpenses Pto
Prevenues Prec Pognized.
AAbasic Pequation Pfor Pthe Pbalance Psheet Pis: P- PCORRECT PANSWER P-Equity P= PAssets P- PLiabilities
Why Pis Pthe PBalance PSheet Pknown Pas Pa Ppermanent Pstatement? P- PCORRECT
PANSWER P- PBecause Pthe Pother Pstatements Pare Preset Pat Pthe Pend Pof Pthe Pfiscal
Pyear
How Pdo Pyou Pcalculate Pthe Pchange Pin PRetained PEarnings? P- PCORRECT PANSWER P-Net PIncome P-
PDividends
Which Pof Pthe Pfollowing Pis Pgenerally Ptrue? P- PCORRECT PANSWER P-Operating PIncome Pand PEBIT Pare
Pthe Psame
Which Pcomponents Pare Ppart Pof Ptotal Passets? P- PCORRECT
PANSWER P- PCash PAccounts PReceivable, PInventory, PLong PTerm
PAssets
,Which Pcomponents Pare Ppart Pof Pcurrent Passets? P- PCORRECT
PANSWER P- PInventory, PCash, PAccounts PReceivable, PShort PTerm
PInvestments
Which Pcomponents Pare Ppart Pof PTotal PLiabilities? P- PCORRECT
PANSWER P- PBonds, PAccounts PPayable, PMortgage
When PFixed PAssets Pincrease Pwhat Phappens Pto PCash? P- PCORRECT PANSWER P-Cash Pdecreases
, Which Pis Pthe Ppurpose Pof Pthe Pstatement Pof Pcash Pflows? P- PCORRECT
PANSWER P- Pexplains Pthe Pchange Pin Pcash Pbalance Pfor Pone Pperiod Pof
Ptime
The POIROI P(Operating PIncome PReturn Pon PInvestment) Puses Pwhat Pelements Pon Pthe Pincome
Pstatement? P- PCORRECT PANSWER P-EBIT, PTotal PAssets
Why Pwould Pa Pcompany Pbe Pinterested Pin Pthe PTAT-Total PAsset
PTurnover-ratio? Pa P- PCORRECT PANSWER P-How Pefficient Passets Pare Pat
Pproducing Psales
Which Pof Pthe Pfollowing Pgives Pthe Plargest Peffective Prate P(APY) P- PCORRECT
PANSWER P- P18.6% Pcompounded Pdaily
What Pdoes Pthe Pbeta Pcoefficient Prepresent? P- PCORRECT PANSWER P-It Pis Pa
Pstatistically- Pderived Pmeasure Pof Pvolatility
Why Pis Pdepreciation Pexpense Ptaken Pout Pof Pthe Pnet Pincome Pcalculation, Pyet Padded Pback Pat
Pthe Pend? P- PCORRECT PANSWER P-Because Pdepreciation Pexpense Pis Ptax Pdeductible
Why Pis Pthe PNPV Ppreferred Pover Pthe PIRR? PPick PTwo P- PCORRECT PANSWER P-1-It Pmeasures Pthe
Pdollar Pvalue P2- PIt Pis Pharder Pto Pcalculate
What Pdoes Pthe PDegree Pof PFinancial PLeverage Pindicate? P- PCORRECT PANSWER P-The Preliance Pon
Pdebt
If Pa Pcompany Phas Pa Phigh Pdegree P of Pfinancial Pleverage, Pwhat Pdoes Pthat Ptell Pus Pabout Pthe Pfirm's
Prisk Pprofile?
- PCORRECT PANSWER P-Higher Pprofits Pto Pshareholders
What Pis Pthe Pcash Pcycle? P- PCORRECT PANSWER P-The Pamount Pof Ptime Pto Pregenerate Pcash
Why Pis Pfloat Pimportant Pto Punderstand? P- PCORRECT PANSWER P-To Ptime Pcash Pexpenditures
What Pshould Pa Pcompany Pdo Pto Pmanage Pits Pworking Pcapital? P- PCORRECT
