WGU C214 Exam Questions & Answers 100% Accurate

1. The goal of the corporation is to: - ANSWER-Maximize stock price 2. Which of the following is a requirement for an efficient market - ANSWER-Competitive markets, transparency, liquidity 3. What is the relationship between risk and required return? - ANSWER-Higher risk causes higher required return 4. The value of money depends upon - ANSWER-The timing of the receipt, the certainty of the receipt, and the riskiness of the receipt 5. What is the purpose of the SEC 10-K filing requirement? - ANSWER-To promote transparency and market efficiency 6. Which line items are a part of net working capital? - ANSWER-Inventory, accounts payable and accrued expenses. (not bonds) 7. Which action causes a cash outflow? - ANSWER-Increase in inventory 8. Which of the following is correct? - ANSWER-Gross PPE equals net PPE plus accumulated depreciation 9. Net Margin is defined as: - ANSWER-Net income divided by sales 10. Which item is transferred from the income statement to the balance sheet? - ANSWER-Depreciated expense and addition to retained earnings