WGU C214 Pre-Assement Question
and answers correctly solved
2025/2026
How can a private firm appropriately maximize shareholder value? - correct answer ✔By making
decisions that keep the control of the business with the owners
Why are American regulators focused on international investing in a global marketplace? - correct
answer ✔Because international investing in a global marketplace is the concern of
American investors
What is one of the two basic types of financial instruments? - correct answer ✔Bonds
If a company outsources the manufacturing of its products to a foreign country, what are the likeliest
outcomes? - correct answer ✔Consumer prices will decrease and Domestic employment will decrease.
What is true about the content and structure of a balance sheet? - correct answer ✔It reports the
assets, liabilities, and equity at a point in time.
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? -
correct answer ✔The change will decrease cash flows from operations by $5,000.
Which statement accurately explains the recognition of revenues and expenses under accounting
income
, and income for tax purposes? - correct answer ✔Revenues and expenses may be recognized in one
period for accounting income purposes and in a different period for income tax purposes.
Selected Data for 20x2 for ABD Inc.
Netincome $ 1,000
Depreciation expense $ 300
Change in operating assets $ 600
Change in net property, plant, and equipment$ 5,000
Changes in long-term liabilities $ 1,000
Dividends paid $ 200
What is the firm's cash flow from investments, using the data above and assuming no asset disposals? -
correct answer ✔$5,300 outflow
What is the basic equation for a balance sheet? - correct answer ✔Assets = Liabilities + Equity
What do cash flows from investing activities generally relate to? - correct answer ✔A firm's purchase
and sale of long-term assets
Which transaction is reflected in cash flow from operating activities? - correct answer ✔Cash sales to
customers
What does free cash flow represent? - correct answer ✔Cash available for distribution after funding
required reinvestment
An analyst is comparing the ratios of two firms and needs to address timing differences. What would be
considered an example of a timing difference between the two firms? - correct answer ✔The firms
have different fiscal years.
and answers correctly solved
2025/2026
How can a private firm appropriately maximize shareholder value? - correct answer ✔By making
decisions that keep the control of the business with the owners
Why are American regulators focused on international investing in a global marketplace? - correct
answer ✔Because international investing in a global marketplace is the concern of
American investors
What is one of the two basic types of financial instruments? - correct answer ✔Bonds
If a company outsources the manufacturing of its products to a foreign country, what are the likeliest
outcomes? - correct answer ✔Consumer prices will decrease and Domestic employment will decrease.
What is true about the content and structure of a balance sheet? - correct answer ✔It reports the
assets, liabilities, and equity at a point in time.
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? -
correct answer ✔The change will decrease cash flows from operations by $5,000.
Which statement accurately explains the recognition of revenues and expenses under accounting
income
, and income for tax purposes? - correct answer ✔Revenues and expenses may be recognized in one
period for accounting income purposes and in a different period for income tax purposes.
Selected Data for 20x2 for ABD Inc.
Netincome $ 1,000
Depreciation expense $ 300
Change in operating assets $ 600
Change in net property, plant, and equipment$ 5,000
Changes in long-term liabilities $ 1,000
Dividends paid $ 200
What is the firm's cash flow from investments, using the data above and assuming no asset disposals? -
correct answer ✔$5,300 outflow
What is the basic equation for a balance sheet? - correct answer ✔Assets = Liabilities + Equity
What do cash flows from investing activities generally relate to? - correct answer ✔A firm's purchase
and sale of long-term assets
Which transaction is reflected in cash flow from operating activities? - correct answer ✔Cash sales to
customers
What does free cash flow represent? - correct answer ✔Cash available for distribution after funding
required reinvestment
An analyst is comparing the ratios of two firms and needs to address timing differences. What would be
considered an example of a timing difference between the two firms? - correct answer ✔The firms
have different fiscal years.
