C214 OA Q & A Checklist Exam Questions &
Answers | Latest Already Graded A+ |
Questions with Correct Answers 2026 latest
update!
Review Questions CFO decreases
1. If accounts receivable increases, what is
impact on CFO?
Are actual taxes paid the same as shown on No. Actual taxes based on IRS rules while income statement
GAAP income based
statement? on GAAP
Which decisions require using subjective Economic life of a new asset
estimates?
If there is a 30% chance of a recession, what 70% - - the sum of the probabilities must equal 100%
is the probability of
expansion?
, How much interest is paid on a 6% bond 6% x 1000 = $60 per year $60 x 2.25 = $135
over 2 years and 3
months? (Simple Interest)
How does a "prudent investor" select Seeks the highest return for "appropriate" amount of risk
investments?
What do points on the Efficient Frontier The maximum return for a given level of risk; maximum
measure? Return-to-risk
ratio
What is Beta? Measure of volatility of a stock's risk relative to the market
Why are accurate forecasts important? Plan for resources for production; accurate evaluation of
capital
projects
Which ratio is used in valuing a private PE ratio in the Comparable Multiples method
company?
What are the 4 costs associated with Product, storage, holding, and opportunity
holding inventory?
What risk is eliminated by a diversified Idiosyncratic risk - risk affecting a single firm
portfolio?
What are the impacts of outsourcing? Fewer U.S. jobs and lower priced products
What are the impacts of tariffs? More U.S. jobs and higher product costs for consumers
What securities are exempt from federal Municipal bond interest is tax-exempt. Treasury securities ARE
income taxation? taxable
Why would a firm prefer to issue debt rather Debt has lower required return; debt interest is tax deductible
than stock?
What happens to APY as the number of APY increases
interest payment
periods per year increase?
What is the present value of future Intrinsic value = it is the "real" value of the stock
cash flows of a stock called?
What indicates if a stock is a The price of the stock is less than the "intrinsic value"
"good investment"?
In event of bankruptcy, what is the order of Creditors, subordinated debt, Preferred stock, Common
claims settlement? stock.
Answers | Latest Already Graded A+ |
Questions with Correct Answers 2026 latest
update!
Review Questions CFO decreases
1. If accounts receivable increases, what is
impact on CFO?
Are actual taxes paid the same as shown on No. Actual taxes based on IRS rules while income statement
GAAP income based
statement? on GAAP
Which decisions require using subjective Economic life of a new asset
estimates?
If there is a 30% chance of a recession, what 70% - - the sum of the probabilities must equal 100%
is the probability of
expansion?
, How much interest is paid on a 6% bond 6% x 1000 = $60 per year $60 x 2.25 = $135
over 2 years and 3
months? (Simple Interest)
How does a "prudent investor" select Seeks the highest return for "appropriate" amount of risk
investments?
What do points on the Efficient Frontier The maximum return for a given level of risk; maximum
measure? Return-to-risk
ratio
What is Beta? Measure of volatility of a stock's risk relative to the market
Why are accurate forecasts important? Plan for resources for production; accurate evaluation of
capital
projects
Which ratio is used in valuing a private PE ratio in the Comparable Multiples method
company?
What are the 4 costs associated with Product, storage, holding, and opportunity
holding inventory?
What risk is eliminated by a diversified Idiosyncratic risk - risk affecting a single firm
portfolio?
What are the impacts of outsourcing? Fewer U.S. jobs and lower priced products
What are the impacts of tariffs? More U.S. jobs and higher product costs for consumers
What securities are exempt from federal Municipal bond interest is tax-exempt. Treasury securities ARE
income taxation? taxable
Why would a firm prefer to issue debt rather Debt has lower required return; debt interest is tax deductible
than stock?
What happens to APY as the number of APY increases
interest payment
periods per year increase?
What is the present value of future Intrinsic value = it is the "real" value of the stock
cash flows of a stock called?
What indicates if a stock is a The price of the stock is less than the "intrinsic value"
"good investment"?
In event of bankruptcy, what is the order of Creditors, subordinated debt, Preferred stock, Common
claims settlement? stock.
