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Exam (elaborations)

WGU C214 OA Q&A Checklist QUESTIONS WITH CORRECT ANSWERS 2025

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WGU C214 OA Q&A Checklist QUESTIONS WITH CORRECT ANSWERS 2025

Institution
C214
Course
C214









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Written for

Institution
C214
Course
C214

Document information

Uploaded on
January 7, 2025
Number of pages
10
Written in
2024/2025
Type
Exam (elaborations)
Contains
Questions & answers

Subjects

Content preview

WGU C214 OA Q&A Checklist QUESTIONS
WITH CORRECT ANSWERS 2025
WhichQwillQbeQlarger:QaccrualQtaxesQpayableQorQaccountingQincomeQtaxQexpenseQ-QCORRECTQANSWERQ-
AccountingQtaxQexpenseQwillQbeQhigher;QactualQtaxesQbasedQonQIRSQrulesQwillQbeQlower



WhichQfinancialQratiosQmeasureQ"efficiency"?Q-QCORRECTQANSWERQ-
AssetQturnoverQandQFixedQAssetQturnover



WhichQratioQisQtheQbestQmeasureQofQaQfirm'sQabilityQtoQpayQbills?Q-QCORRECTQANSWERQ-QuickQRatio



WhichQdecisionQrequiresQusingQsubjectiveQestimates?Q-QCORRECTQANSWERQ-EconomicQlifeQofQaQnewQasset



WhatQisQtheQyieldQtoQmaturityQonQaQbond?Q-QCORRECTQANSWERQ-
TheQreturnQearnedQfromQtheQpurchaseQdateQtoQmaturity



IfQaQfirmQbuysQaQ30-dayQCD,QwhereQisQitQcarriedQonQtheQbalanceQsheet?Q-QCORRECTQANSWERQ-
CashQandQSTQinQcurrentQassets



HowQdoesQaQ"prudentQinvestor"QselectQinvestments?Q-QCORRECTQANSWERQ-
SeeksQtheQhighestQreturnQforQ"reasonable"QamountQofQrisk



WhatQisQtheQdifferenceQbetweenQWACCQandQCAPM'sQrequiredQreturn?Q-QCORRECTQANSWERQ-
CAPMQincludesQonlyQequityQrequiredQreturn;QWACCQincludesQdebtQandQequity



WhatQdoQpointsQonQtheQEfficientQFrontierQmeasure?Q-QCORRECTQANSWERQ-
TheQmaximumQreturnQforQaQgivenQlevelQofQrisk;QmaximumQReturn-to-riskQratio



WhatQisQBeta?Q-QCORRECTQANSWERQ-MeasureQofQvolatilityQofQaQstock'sQriskQrelativeQtoQtheQmarket



WhyQareQaccurateQforecastsQimportant?Q-QCORRECTQANSWERQ-PlanQforQresourcesQtoQsupportQsales

, WhichQleverageQmeasureQshowsQtheQimpactQofQEBITQchangesQonQpre-taxQprofitQ(EBT)?Q-
QCORRECTQANSWERQ-FinancialQleverage




WhichQratiosQareQusedQinQworkingQcapitalQmanagement?Q-QCORRECTQANSWERQ-
CashQratio,QCurrentQratioQ-QratiosQcontainingQcurrentQassetsQand/orQcurrentQliabilities



WhichQratioQisQusedQforQvaluingQaQprivateQcompany?Q-QCORRECTQANSWERQ-Price-to-earningsQ(PE)Qratio



WhatQareQtheQ4QcostsQassociatedQwithQholdingQinventory?Q-QCORRECTQANSWERQ-
Product,Qstorage,Qholding,QandQopportunity



WhatQriskQisQeliminatedQbyQaQdiversifiedQportfolio?Q-QCORRECTQANSWERQ-IdiosyncraticQriskQ-
QriskQaffectingQaQsingleQfirm




WhatQisQtheQ"secondary"Qmarket?Q-QCORRECTQANSWERQ-
InvestorsQtradingQsecuritiesQamongQthemselvesQafterQinitialQissuanceQofQsecurities



WhatQareQimpactsQofQoutsourcing?Q-QCORRECTQANSWERQ-FewerQjobsQandQlowerQpricedQproducts



WhatQareQtheQimpactsQofQtariffs?Q-QCORRECTQANSWERQ-
ProtectsQinefficientQfirmsQandQemployees;QhigherQproductQcostsQforQconsumers



WhichQitemQisQtransferredQfromQtheQincomeQstatementQtoQtheQbalanceQsheet?Q-QCORRECTQANSWERQ-
DepreciationQexpense



IfQtwoQcompaniesQuseQdifferentQinventoryQvaluationQmethods,QwhatQisQthisQcalled?Q-QCORRECTQANSWERQ-
AnQ"accountingQdifference"



WhatQsecuritiesQareQexemptQfromQfederalQincomeQtaxation?Q-QCORRECTQANSWERQ-MunicipalQbonds



WhyQwouldQaQfirmQpreferQtoQissueQdebtQratherQthanQstock?Q-QCORRECTQANSWERQ-
DebQhasQaQlowerQrequiredQreturn;QdebtQinterestQisQtaxQdeductible;QavoidsQdilutionQofQownership

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