WGU C214 OA FINAL PAPER UPDATED
COMPLETE QUESTIONS AND CORRECT
ANSWERS BUNDLED REVIEW GUIDE
●● 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
●● 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
What is this firm's cash flow from investments, using the data above and
assuming no asset disposals?
Answer: $5,300 outflow
●● What is the basic equation for a balance sheet?
Answer: Assets = Liabilities + Equity
COMPLETE QUESTIONS AND CORRECT
ANSWERS BUNDLED REVIEW GUIDE
●● 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
●● 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
What is this firm's cash flow from investments, using the data above and
assuming no asset disposals?
Answer: $5,300 outflow
●● What is the basic equation for a balance sheet?
Answer: Assets = Liabilities + Equity
