WGU C214 OA Q&A Checklist Exam Questions &
Answers | Latest Already Graded A+ |
Questions with Correct Answers 2026 latest
update!
Terms in this set (110)
Which will be larger: accrual taxes payable Accounting tax expense will be higher; actual taxes based on
or accounting income tax expense IRS rules will be lower
Which financial ratios measure "efficiency"? Asset turnover and Fixed Asset turnover
Which ratio is the best measure of a firm's Quick Ratio
ability to pay bills?
Which decision requires using subjective Economic life of a new asset
estimates?
What is the yield to maturity on a bond? The return earned from the purchase date to maturity
If a firm buys a 30-day CD, where is it Cash and ST in current assets
carried on the balance sheet?
How does a "prudent investor" select Seeks the highest return for "reasonable" amount of risk
investments?
, What is the difference between WACC and CAPM includes only equity required return; WACC includes
CAPM's required return? debt and equity
What do points on the Efficient Frontier The maximum return for a given level of risk; maximum
measure? Return-to-risk ratio
What is Beta? Measure of volatility of a stock's risk relative to the market
Why are accurate forecasts important? Plan for resources to support sales
Which leverage measure shows the impact Financial leverage
of EBIT changes on pre-tax profit (EBT)?
Which ratios are used in working capital Cash ratio, Current ratio - ratios containing current assets
management? and/or current liabilities
Which ratio is used for valuing a private Price-to-earnings (PE) ratio
company?
What are the 4 costs associated with Product, storage, holding, and opportunity
holding inventory?
What risk is eliminated by a diversified Idiosyncratic risk - risk affecting a single firm
portfolio?
What is the "secondary" market? Investors trading securities among themselves after initial
issuance of securities
What are impacts of outsourcing? Fewer jobs and lower priced products
What are the impacts of tariffs? Protects inefficient firms and employees; higher product costs
for consumers
Which item is transferred from the Depreciation expense
income statement to the balance
sheet?
If two companies use different inventory An "accounting difference"
valuation methods, what is this called?
What securities are exempt from federal Municipal bonds
income taxation?
Why would a firm prefer to issue debt rather Deb has a lower required return; debt interest is tax
than stock? deductible; avoids dilution of ownership
What happens to APY as the number of APY increases
interest payment periods per year increase?
What is the present value of future Intrinsic Value
cash flows of a stock called?
Answers | Latest Already Graded A+ |
Questions with Correct Answers 2026 latest
update!
Terms in this set (110)
Which will be larger: accrual taxes payable Accounting tax expense will be higher; actual taxes based on
or accounting income tax expense IRS rules will be lower
Which financial ratios measure "efficiency"? Asset turnover and Fixed Asset turnover
Which ratio is the best measure of a firm's Quick Ratio
ability to pay bills?
Which decision requires using subjective Economic life of a new asset
estimates?
What is the yield to maturity on a bond? The return earned from the purchase date to maturity
If a firm buys a 30-day CD, where is it Cash and ST in current assets
carried on the balance sheet?
How does a "prudent investor" select Seeks the highest return for "reasonable" amount of risk
investments?
, What is the difference between WACC and CAPM includes only equity required return; WACC includes
CAPM's required return? debt and equity
What do points on the Efficient Frontier The maximum return for a given level of risk; maximum
measure? Return-to-risk ratio
What is Beta? Measure of volatility of a stock's risk relative to the market
Why are accurate forecasts important? Plan for resources to support sales
Which leverage measure shows the impact Financial leverage
of EBIT changes on pre-tax profit (EBT)?
Which ratios are used in working capital Cash ratio, Current ratio - ratios containing current assets
management? and/or current liabilities
Which ratio is used for valuing a private Price-to-earnings (PE) ratio
company?
What are the 4 costs associated with Product, storage, holding, and opportunity
holding inventory?
What risk is eliminated by a diversified Idiosyncratic risk - risk affecting a single firm
portfolio?
What is the "secondary" market? Investors trading securities among themselves after initial
issuance of securities
What are impacts of outsourcing? Fewer jobs and lower priced products
What are the impacts of tariffs? Protects inefficient firms and employees; higher product costs
for consumers
Which item is transferred from the Depreciation expense
income statement to the balance
sheet?
If two companies use different inventory An "accounting difference"
valuation methods, what is this called?
What securities are exempt from federal Municipal bonds
income taxation?
Why would a firm prefer to issue debt rather Deb has a lower required return; debt interest is tax
than stock? deductible; avoids dilution of ownership
What happens to APY as the number of APY increases
interest payment periods per year increase?
What is the present value of future Intrinsic Value
cash flows of a stock called?
