WGU C214 QUESTIONS WITH CORRECT ANSWERS 2026

WGU C214 QUESTIONS WITH CORRECT
ANSWERS 2026
Corporate K Finance K - K CORRECT K ANSWER K -focuses K on K financial K decision K making K by K a K firms
K management



Investments K - K CORRECT K ANSWER K -various K types K of K financial K instruments K (stocks, K bonds, K etc)



Banking K or K Financial K Institutions K - K CORRECT K ANSWER K -
make K money K by K paying K depositors K a K smaller K interest K rate K than K the K interest K rate K charged K to
K borrowers




Treasury K Securities K - K CORRECT K ANSWER K -generally K bonds K that K are K issued K by K the K US
K government




Corporate K Bonds K - K CORRECT K ANSWER K -firms K borrowing K from K the K public



Stocks K - K CORRECT K ANSWER K -a K share K of K ownership K in K a K company



Primary K financial K markets K - K CORRECT K ANSWER K -markets K where K securities K are K first K issued



Syndicate K - K CORRECT K ANSWER K -
a K group K that K is K temporarily K formed K to K handle K a K bond K or K stock K issue: K generally K large
K investment K bank K o Kr Kinstitutional Kinvestors




Underwriter K - K CORRECT K ANSWER K -
responsible Kfor Kdetermining Kthe Kvalue Kof Kthe Ksecurity; Kmay Kpurchase Kall Kthe Ksecurities K& Kthen
Kresale Kto K investors



Competitive K sale K - K CORRECT K ANSWER K -
underwriters Ksubmit Kbids Koffering Khighest Kprice/lowest Kinterest Krate; Kunderwriter Kresales Ka
Kslightly Khigh Ker Kprice

,Negotiated K sale K - K CORRECT K ANSWER K -underwriters K submit K bids, K go K thru K interview K to K be
K selected

,Secondary K financial K markets K - K CORRECT K ANSWER K -
where K securities K are K traded K after K the K initial K offering K (stock K market)



Auction K market K - K CORRECT K ANSWER K -
has Ka Kphysical Klocation K& Kprices Kare Kdetermined Kby Kthe Khighest Kprice Kan Kinvestor Kis Kwilling
Kto Kpay K(New K York KStock KExchange)




Dealer K market K - K CORRECT K ANSWER K -no K physical K location-
securities Kare Kbought K& Ksold Kthru Ka Knetwork Kof Kdealers Kthat Ktrade Kfor Kthemselves; Kmulti
Kdealers Kper Kst K ock K(NASDAQ)




Role K of K financial K markets K - K CORRECT K ANSWER K -
they K reduce K the K cost K of K borrowing K from K the K public K or K selling K ownership K to K the K public



Role K of K Specialist K (NYSE) K or K Dealers K - K CORRECT K ANSWER K -
provide K liquidity K for K a K fair K & K orderly K market; K may K increase K the K spread K to K do K so K (charge
K a K lower K price K t Ko Kseller Kand Ka Khigher Kprice Kto Kbuyer)




Financial K market K liquidity K - K CORRECT K ANSWER K -
the K ease K of K trading K in K the K market K (high K frquency K traders)



Market Korders K - K CORRECT K ANSWER K -
time Ksensitive; Ksales Kat Kcurrent Kbid Kprice/buys Kat Kcurrent Kasking Kprice Kwhen Korder Kis
Kplaced- Kimmediately



Limited K orders K - K CORRECT K ANSWER K -
price K sensitive; K sell K occurs K when K price K of K stock K matches K order K price



Role K of K price K - K CORRECT K ANSWER K -
convet Kinformation K to K consumers; Kaffect K incentives K &affect Kthe K distribution Kof K income



Dollar KReturns K- KCORRECT KANSWER K-Pt K- KPt-1 K+ KCFt K(Pt= Ksold Kprice, KPt-1=bought Kprice,
KCFt=cash Kflow- K coupons Kfor Kbonds/dividians Kfor Kstocks)

, Percentage KReturns K- KCORRECT KANSWER K-Pt K- KPt-1/Pt-1 K+ KCFt/Pt-1 Kx

K100 K(1.2) K(figure Kfor Kdollar Kreturn Kand Kdivide Kinto Kbought Kprice)




Goal K of K company/firm K - K CORRECT K ANSWER K -to K maximize K shareholder K value K or Kmaximize K profit



Agency K costs K - K CORRECT K ANSWER K -
costs K that K are K incurred K when K management K doesn't K act K in K the K best K interests K of K shareholders



Profit K maximizarion K - K CORRECT K ANSWER K -the K potential K effect K of K focusing K soley K on K profits



Accounting K - K CORRECT K ANSWER K -is K backward-looking K and K risk K free



Finance K - K CORRECT K ANSWER K -is K forward-looking K and K involes K massive K uncertainty



Income KStatement K- KCORRECT KANSWER K-show Kresults Kof Koperation Kover Ktime;
Krevenues K- Kexpenses K= Knet Kincome




Balance K Sheet K - K CORRECT K ANSWER K -
a K"snap Kshot" Kof Ka Kfirm's Kassests K& Kfinancing Kat Ka Kpaticular Kpoint Kin Ktime; KAssets=
KLiabilities K+ KOwner's K Equity



Statement K of K Cash K Flows K - K CORRECT K ANSWER K -tracks K all K cash K in K and K out K of K the K firm



Cash K Accounting K - K CORRECT K ANSWER K -cash K in K =revenue; K cash K out=expense



Accrual K Accounting K - K CORRECT K ANSWER K -
revenues Kare Krecognized Kwhen Kthe Kearnings Kprocess Kis Kcomplete; Kexpenses Kare K"matched"
Kto Krecongize K d Krevenues




Cash-based K income K - K CORRECT K ANSWER K -an K informal K metric K based K on K cash K in K & K cash K out
K of K the K firm