WGU C214 EXAM 2026 LATEST UPDATE
QUESTIONS AND CORRECT VERIFIED
ANSWERS ALREADY GRADED A+
Retained Earnings (RE) = - ANS-Beginning RE + NI - Dividends
Accounting Difference - ANS-Companies using different accounting methods
Timing Difference - ANS-Companies having different fiscal years
Stockholders - ANS-have voting rights
What is include in Initial Outlay (IO)? - ANS-Purchase price of new equipment, shipping and
handling, working capital
Risk associated with debt financing? - ANS-Too much debt can lead to bankruptcy
Inventory related costs? - ANS-Production costs, storage costs, and opportunity costs
What is every publicly traded company required to file with SEC? - ANS-annual audits
What are some issues with foreign financial statements? - ANS-They use international financial
reporting standards, different accounting standards
, CFI - ANS-Measures investments in long term assets such as PP&E
Efficient Frontier - ANS-Maximizes expected return for a given level of risk
Portfolio Diversification - ANS-Reduces risk
Current Assets - ANS-cash or any asset that can be converted to cash within 12 months
Current Liabilities - ANS-Liabilities that can be paid off within 12 months
Differential Cash Flow (DCF) - ANS-Net cash flow generated by by a new asset on a yearly basis
Current Ratio - ANS-Measures short term liquidity to pay short term obligations
SEC - ANS-Regulates public disclosures of entities that sell debt and equity to the public
Increased frequency in compounding leads to - ANS-An increase in APY
Treasury bonds are taxed at - ANS-Federal level
Municipal Bonds - ANS-Tax Free
What are two benefits of unbundling and offshoring? - ANS-Reduces the costs and results in
higher sales and employment. It allows for sale of intermediate and final goods at lower
prices and increases employment
What are two types of financial instruments - ANS-Stocks and Bonds
QUESTIONS AND CORRECT VERIFIED
ANSWERS ALREADY GRADED A+
Retained Earnings (RE) = - ANS-Beginning RE + NI - Dividends
Accounting Difference - ANS-Companies using different accounting methods
Timing Difference - ANS-Companies having different fiscal years
Stockholders - ANS-have voting rights
What is include in Initial Outlay (IO)? - ANS-Purchase price of new equipment, shipping and
handling, working capital
Risk associated with debt financing? - ANS-Too much debt can lead to bankruptcy
Inventory related costs? - ANS-Production costs, storage costs, and opportunity costs
What is every publicly traded company required to file with SEC? - ANS-annual audits
What are some issues with foreign financial statements? - ANS-They use international financial
reporting standards, different accounting standards
, CFI - ANS-Measures investments in long term assets such as PP&E
Efficient Frontier - ANS-Maximizes expected return for a given level of risk
Portfolio Diversification - ANS-Reduces risk
Current Assets - ANS-cash or any asset that can be converted to cash within 12 months
Current Liabilities - ANS-Liabilities that can be paid off within 12 months
Differential Cash Flow (DCF) - ANS-Net cash flow generated by by a new asset on a yearly basis
Current Ratio - ANS-Measures short term liquidity to pay short term obligations
SEC - ANS-Regulates public disclosures of entities that sell debt and equity to the public
Increased frequency in compounding leads to - ANS-An increase in APY
Treasury bonds are taxed at - ANS-Federal level
Municipal Bonds - ANS-Tax Free
What are two benefits of unbundling and offshoring? - ANS-Reduces the costs and results in
higher sales and employment. It allows for sale of intermediate and final goods at lower
prices and increases employment
What are two types of financial instruments - ANS-Stocks and Bonds
