WGU C214 PRACTICE OA WELL ANALYSED
QUESTIONS WITH CORRECT ANSWERS
GRADED A+ 2026
How can a private firm appropriately maximize shareholder value? 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? 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? ANSWER >> Bonds
1
, What are the likeliest outcomes if a company outsources the manufacturing of its
products to a foreign country? ANSWER >> Consumer prices will decrease and
Domestic employment will decrease.
What do the content and structure of a balance sheet report? ANSWER >> 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?
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? 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.
Net Income $ 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
2
QUESTIONS WITH CORRECT ANSWERS
GRADED A+ 2026
How can a private firm appropriately maximize shareholder value? 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? 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? ANSWER >> Bonds
1
, What are the likeliest outcomes if a company outsources the manufacturing of its
products to a foreign country? ANSWER >> Consumer prices will decrease and
Domestic employment will decrease.
What do the content and structure of a balance sheet report? ANSWER >> 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?
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? 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.
Net Income $ 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
2
