WGU C214 OA Prep Exam Questions & Answers 100% Correct

Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) - ANSWER-F Stocks and bonds are two types of financial instruments (T/F) - ANSWER-T The matching principle in accrual accounting requires that: a. Revenues be recognized when the earnings process is complete and matches expenses to revenues recognized. b. Expenses are matched to the year in which they are incurred c. Revenues are matched to the year in which they are booked d. Revenues should be large enough to match expenses - ANSWER-a. Revenues be recognized when the earnings process is complete and matches expenses to revenues recognized. A basic equation for the balance sheet is: a. Equity = Assets - Liabilities b. Liabilities = Equity + Assets c. Assets = Liabilities - Equity d. Assets = Equity - Liabilities - ANSWER-a. Equity = Assets - Liabilities Why is the Balance Sheet known as a permanent statement? a. Because the statement is sent to the SEC. b. Because the other statements are reset at the end of the fiscal year c. Because it is printed out and archived d. Because it persists in the minds of the shareholders. - ANSWER-b. Because the other statements are reset at the end of the fiscal year