WGU C214 PRE-ASSEMENT QUESTIONS WITH CORRECT ANSWERS 2025

WGU C214 PRE-ASSEMENT QUESTIONS
WITH CORRECT ANSWERS 2025
HowAcanAaAprivateAfirmAappropriatelyAmaximizeAshareholderAvalue?A-ACORRECTAANSWERA-
ByAmakingAdecisionsAthatAkeepAtheAcontrolAofAtheAbusinessAwithAtheAowners



WhyAareAAmericanAregulatorsAfocusedAonAinternationalAinvestingAinAaAglobalAmarketplace?A-
ACORRECTAANSWERA-BecauseAinternationalAinvestingAinAaAglobalAmarketplaceAisAtheAconcernAof



AmericanAinvestors



WhatAisAoneAofAtheAtwoAbasicAtypesAofAfinancialAinstruments?A-ACORRECTAANSWERA-Bonds



IfAaAcompanyAoutsourcesAtheAmanufacturingAofAitsAproductsAtoAaAforeignAcountry,AwhatAareAtheAlikeliest

outcomes?A-ACORRECTAANSWERA-
ConsumerApricesAwillAdecreaseAandADomesticAemploymentAwillAdecrease.



WhatAisAtrueAaboutAtheAcontentAandAstructureAofAaAbalanceAsheet?A-ACORRECTAANSWERA-
ItAreportsAtheAassets,Aliabilities,AandAequityAatAaApointAinAtime.



AAcompanyAreportedAanAincreaseAinAaccountsAreceivableAofA$5,000AduringAtheArecentAperiod.AHalfAofAthis

amountAisAexpectedAtoAbeAcollectedAnextAperiod.



HowAwillAthisAchangeAinAaccountsAreceivableAaffectAtheAcashAflowsAfromAtheAoperatingAactivitiesAsection?A-
ACORRECTAANSWERA-TheAchangeAwillAdecreaseAcashAflowsAfromAoperationsAbyA$5,000.




WhichAstatementAaccuratelyAexplainsAtheArecognitionAofArevenuesAandAexpensesAunderAaccountingAincom
e

andAincomeAforAtaxApurposes?A-ACORRECTAANSWERA-
RevenuesAandAexpensesAmayAbeArecognizedAinAoneAperiodAforAaccountingAincomeApurposesAandAinAaAdiffe
rentAperiodAforAincomeAtaxApurposes.



SelectedADataAforA20x2AforAABDAInc.

, NetincomeA$A1,000

DepreciationAexpenseA$A300

ChangeAinAoperatingAassetsA$A600

ChangeAinAnetAproperty,Aplant,AandAequipment$A5,000

ChangesAinAlong-termAliabilitiesA$A1,000

DividendsApaidA$A200



WhatAisAtheAfirm'sAcashAflowAfromAinvestments,AusingAtheAdataAaboveAandAassumingAnoAassetAdisposals?A-
ACORRECTAANSWERA-$5,300Aoutflow




WhatAisAtheAbasicAequationAforAaAbalanceAsheet?A-ACORRECTAANSWERA-AssetsA=ALiabilitiesA+AEquity



WhatAdoAcashAflowsAfromAinvestingAactivitiesAgenerallyArelateAto?A-ACORRECTAANSWERA-
AAfirm'sApurchaseAandAsaleAofAlong-termAassets



WhichAtransactionAisAreflectedAinAcashAflowAfromAoperatingAactivities?A-ACORRECTAANSWERA-
CashAsalesAtoAcustomers



WhatAdoesAfreeAcashAflowArepresent?A-ACORRECTAANSWERA-
CashAavailableAforAdistributionAafterAfundingArequiredAreinvestment



AnAanalystAisAcomparingAtheAratiosAofAtwoAfirmsAandAneedsAtoAaddressAtimingAdifferences.AWhatAwouldAbe
AconsideredAanAexampleAofAaAtimingAdifferenceAbetweenAtheAtwoAfirms?A-ACORRECTAANSWERA-

TheAfirmsAhaveAdifferentAfiscalAyears.



AAcompany'sAyear-endAbalanceAsheetforA2013AshowsAtheAfollowing:

AccountsAreceivable:A$900

Inventory:A$1200

FixedAassets:A$1000

AccountsApayable:A$1300

Sales:A$4000