WGU C214 PRE-ASSESSMENT QUESTIONS & ANSWERS 2026-202… EXAM
P R O F E S S I O N A L P R A C T I C E M AT E R I A L S
WGU C214 Pre-
Assessment Questions
& Answers 2026-2027 |
Latest Verified
Questions
Verified Answers Exam Ready With Rationales
69 QUESTIONS
DOCUMENT OVERVIEW
This document contains 69 verified questions with correct answers related to financial
principles and regulatory compliance. It provides a comprehensive resource for
understanding key concepts in finance and investment strategies. Students can utilize this
material for effective study, review, and preparation for certification exams in financial
management.
CONTENTS
Shareholder Value Q1–Q12
Financial Instruments Q13–Q24
Accounting Principles Q25–Q36
Page 1
, Investment Analysis Q37–Q47
Capital Budgeting Q48–Q58
Regulatory Compliance Q59–Q69
E XA M Q U EST I O N S
Q1 QUESTION 1 OF 69
How can a private firm appropriately maximize shareholder value?
CORRECT ANSWER
By making decisions that keep the control of the business with the owners
Q2 QUESTION 2 OF 69
Why are American regulators focused on international investing in a global marketplace?
CORRECT ANSWER
Because international investing in a global marketplace is the concern of
American investors
Q3 QUESTION 3 OF 69
If a company outsources the manufacturing of its products to a foreign country, what are the
likeliest
outcomes?
CORRECT ANSWER
Consumer prices will decrease and Domestic employment will decrease.
Page 2
, Q4 QUESTION 4 OF 69
A firm has a ROE (return on equity) of 0.27 and the industry average ROE is 0.24. Which
conclusion would an analyst draw when comparing the firm to the industry?
CORRECT ANSWER
The firm is generating higher returns to owners than the industry.
Q5 QUESTION 5 OF 69
What must have taken place for a firm to recognize revenue, in order for the firm to comply
with the accrual accounting rules?
CORRECT ANSWER
The product must have been delivered.
Q6 QUESTION 6 OF 69
Which securities are issued by local governments and are usually tax exempt at the federal
level?
CORRECT ANSWER
Municipal bonds
Q7 QUESTION 7 OF 69
What are two primary benefits of the capital asset pricing model (CAPM)?
CORRECT ANSWER
CAPM provides a way to determine the expected return for stocks. & CAPM provides a way to
estimate the required return.
Page 3
P R O F E S S I O N A L P R A C T I C E M AT E R I A L S
WGU C214 Pre-
Assessment Questions
& Answers 2026-2027 |
Latest Verified
Questions
Verified Answers Exam Ready With Rationales
69 QUESTIONS
DOCUMENT OVERVIEW
This document contains 69 verified questions with correct answers related to financial
principles and regulatory compliance. It provides a comprehensive resource for
understanding key concepts in finance and investment strategies. Students can utilize this
material for effective study, review, and preparation for certification exams in financial
management.
CONTENTS
Shareholder Value Q1–Q12
Financial Instruments Q13–Q24
Accounting Principles Q25–Q36
Page 1
, Investment Analysis Q37–Q47
Capital Budgeting Q48–Q58
Regulatory Compliance Q59–Q69
E XA M Q U EST I O N S
Q1 QUESTION 1 OF 69
How can a private firm appropriately maximize shareholder value?
CORRECT ANSWER
By making decisions that keep the control of the business with the owners
Q2 QUESTION 2 OF 69
Why are American regulators focused on international investing in a global marketplace?
CORRECT ANSWER
Because international investing in a global marketplace is the concern of
American investors
Q3 QUESTION 3 OF 69
If a company outsources the manufacturing of its products to a foreign country, what are the
likeliest
outcomes?
CORRECT ANSWER
Consumer prices will decrease and Domestic employment will decrease.
Page 2
, Q4 QUESTION 4 OF 69
A firm has a ROE (return on equity) of 0.27 and the industry average ROE is 0.24. Which
conclusion would an analyst draw when comparing the firm to the industry?
CORRECT ANSWER
The firm is generating higher returns to owners than the industry.
Q5 QUESTION 5 OF 69
What must have taken place for a firm to recognize revenue, in order for the firm to comply
with the accrual accounting rules?
CORRECT ANSWER
The product must have been delivered.
Q6 QUESTION 6 OF 69
Which securities are issued by local governments and are usually tax exempt at the federal
level?
CORRECT ANSWER
Municipal bonds
Q7 QUESTION 7 OF 69
What are two primary benefits of the capital asset pricing model (CAPM)?
CORRECT ANSWER
CAPM provides a way to determine the expected return for stocks. & CAPM provides a way to
estimate the required return.
Page 3
