WGU C214 OA PREP QUESTIONS &
ANSWERS(RATED A+)
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
Which components are part of total assets?
a. Cash, Accounts Receivable, Short Term Debt
b. Cash Accounts Receivable, Inventory, Long Term Assets
c. Accounts Payable, Long Term Assets, Long Term Debt
d. Accounts Payable, Net Income, Equity - ANSWER b. Cash Accounts Receivable,
Inventory, Long Term Assets
Which components are part of current assets?
a. Cash, Accounts Receivable, Property Plant & Equipment
b. Accounts Receivable, Accounts Payable, Inventory
c. Long Term Debt, Property Plant & Equipment, Common Stock
d. Inventory, Cash, Accounts Receivable, Short Term Investments - ANSWER d.
Inventory, Cash, Accounts Receivable, Short Term Investments
Which components are part of Total Liabilities?
a. Accounts Payable, Accounts Receivable, Short Term Debt
b. Long Term Debt, Common Stock, Retained Earnings
c. Bonds, Accounts Payable, Mortgage
d. Common Stock, Long Term Debt, Short Term Investments - ANSWER c. Bonds,
Accounts Payable, Mortgage
ANSWERS(RATED A+)
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
Which components are part of total assets?
a. Cash, Accounts Receivable, Short Term Debt
b. Cash Accounts Receivable, Inventory, Long Term Assets
c. Accounts Payable, Long Term Assets, Long Term Debt
d. Accounts Payable, Net Income, Equity - ANSWER b. Cash Accounts Receivable,
Inventory, Long Term Assets
Which components are part of current assets?
a. Cash, Accounts Receivable, Property Plant & Equipment
b. Accounts Receivable, Accounts Payable, Inventory
c. Long Term Debt, Property Plant & Equipment, Common Stock
d. Inventory, Cash, Accounts Receivable, Short Term Investments - ANSWER d.
Inventory, Cash, Accounts Receivable, Short Term Investments
Which components are part of Total Liabilities?
a. Accounts Payable, Accounts Receivable, Short Term Debt
b. Long Term Debt, Common Stock, Retained Earnings
c. Bonds, Accounts Payable, Mortgage
d. Common Stock, Long Term Debt, Short Term Investments - ANSWER c. Bonds,
Accounts Payable, Mortgage
