WGU C214 CONCEPTS ONLY MULTI CHOICE VERSION EXAM QUESTIONS WITH CORRECT ANSWERS 2025

WGU C214 CONCEPTS ONLY MULTI CHOICE VERSION
EXAM QUESTIONS WITH CORRECT ANSWERS 2025
TradingAonAtheANYSEAisAexecutedAwithoutAaAspecialistA(i.e.AaAmarketAmaker).A(T/F)A-ACORRECTAANSWERA-
False



StocksAandAbondsAareAtwoAtypesAofAfinancialAinstrumentsA(T/F)A-ACORRECTAANSWERA-True



TheAmatchingAprincipleAinAaccrualAaccountingArequiresAthat:A-ACORRECTAANSWERA-
RevenuesAbeArecognizedAwhenAtheAearningsAprocessAisAcompleteAandAmatchesAexpensesAtoArevenuesArec
ognized.



AAbasicAequationAforAtheAbalanceAsheetAis:A-ACORRECTAANSWERA-EquityA=AAssetsA-ALiabilities



WhyAisAtheABalanceASheetAknownAasAaApermanentAstatement?A-ACORRECTAANSWERA-
BecauseAtheAotherAstatementsAareAresetAatAtheAendAofAtheAfiscalAyear



HowAdoAyouAcalculateAtheAchangeAinARetainedAEarnings?A-ACORRECTAANSWERA-NetAIncomeA-ADividends



WhichAofAtheAfollowingAisAgenerallyAtrue?A-ACORRECTAANSWERA-OperatingAIncomeAandAEBITAareAtheAsame



WhichAcomponentsAareApartAofAtotalAassets?A-ACORRECTAANSWERA-
CashAAccountsAReceivable,AInventory,ALongATermAAssets



WhichAcomponentsAareApartAofAcurrentAassets?A-ACORRECTAANSWERA-
Inventory,ACash,AAccountsAReceivable,AShortATermAInvestments



WhichAcomponentsAareApartAofATotalALiabilities?A-ACORRECTAANSWERA-
Bonds,AAccountsAPayable,AMortgage



WhenAFixedAAssetsAincreaseAwhatAhappensAtoACash?A-ACORRECTAANSWERA-CashAdecreases

,WhichAisAtheApurposeAofAtheAstatementAofAcashAflows?A-ACORRECTAANSWERA-
explainsAtheAchangeAinAcashAbalanceAforAoneAperiodAofAtime



TheAOIROIA(OperatingAIncomeAReturnAonAInvestment)AusesAwhatAelementsAonAtheAincomeAstatement?A-
ACORRECTAANSWERA-EBIT,ATotalAAssets




WhyAwouldAaAcompanyAbeAinterestedAinAtheATAT-TotalAAssetATurnover-ratio?

aA-ACORRECTAANSWERA-HowAefficientAassetsAareAatAproducingAsales



WhichAofAtheAfollowingAgivesAtheAlargestAeffectiveArateA(APY)A-ACORRECTAANSWERA-
18.6%AcompoundedAdaily



WhatAdoesAtheAbetaAcoefficientArepresent?A-ACORRECTAANSWERA-ItAisAaAstatistically-
derivedAmeasureAofAvolatility



WhyAisAdepreciationAexpenseAtakenAoutAofAtheAnetAincomeAcalculation,AyetAaddedAbackAatAtheAend?A-
ACORRECTAANSWERA-BecauseAdepreciationAexpenseAisAtaxAdeductible




WhyAisAtheANPVApreferredAoverAtheAIRR?APickATwoA-ACORRECTAANSWERA-1-ItAmeasuresAtheAdollarAvalueA2-
AItAisAharderAtoAcalculate




WhatAdoesAtheADegreeAofAFinancialALeverageAindicate?A-ACORRECTAANSWERA-TheArelianceAonAdebt



IfAaAcompanyAhasAaAhighAdegreeAofAfinancialAleverage,AwhatAdoesAthatAtellAusAaboutAtheAfirm'sAriskAprofile?
A-ACORRECTAANSWERA-HigherAprofitsAtoAshareholders




WhatAisAtheAcashAcycle?A-ACORRECTAANSWERA-TheAamountAofAtimeAtoAregenerateAcash



WhyAisAfloatAimportantAtoAunderstand?A-ACORRECTAANSWERA-ToAtimeAcashAexpenditures



WhatAshouldAaAcompanyAdoAtoAmanageAitsAworkingAcapital?A-ACORRECTAANSWERA-
CollectAquicklyAandApayAslowly

, WhatAwouldAbeAaAsourceAofAinformationAtoAdetermineAReplacementACost?A-ACORRECTAANSWERA-
BuildingAAppraisal



WhatAdoesAtheASarbanes-OxleyAActArequireAcompaniesAtoAdo?A-ACORRECTAANSWERA-
HaveAinternalAcontrolAaudits



FINRAA(FinancialAIndustryARegulatoryAAuthority)AdoesAtheAfollowing:A(pickAone)A-ACORRECTAANSWERA-
ProsecutesAnaughtyAstockAbrokers



IfAaAproductAisAmadeA100%Adomestically,AwhatAcanAaffectAitsAdomesticAmarket?A-ACORRECTAANSWERA-
InternationalAcompetition



IfAaAcompanyAmakesAitsAproductAinAaAforeignAcountryAwhereAlaborAcostsAareAmuchAlower,AwhatAhappens?A-
ACORRECTAANSWERA-ProfitsAgoAupAandAdomesticAemploymentAdecreases.




IfAtheAvalueAofAaAdollarAincreases,AtheApriceAofAimports:A-ACORRECTAANSWERA-Decreases



WhyAwouldAaAfarmerAbuyAaAhedgeAwhenAheAsignsAaAcontractAtoAsellAproduceAoverseas?A-
ACORRECTAANSWERA-ToAreduceAcurrencyArisk




AAbasicAequationAforAtheAbalanceAsheetAis:A-ACORRECTAANSWERA-EquityA=AAssetsA-ALiabilities



WhyAisAtheABalanceASheetAknownAasAaApermanentAstatement?A-ACORRECTAANSWERA-
BecauseAtheAotherAstatementsAareAresetAatAtheAendAofAtheAfiscalAyear



HowAdoAyouAcalculateAtheAchangeAinARetainedAEarnings?A-ACORRECTAANSWERA-NetAIncomeA-ADividends



WhichAofAtheAfollowingAisAgenerallyAtrue?A-ACORRECTAANSWERA-OperatingAIncomeAandAEBITAareAtheAsame



WhichAcomponentsAareApartAofAtotalAassets?A-ACORRECTAANSWERA-
CashAAccountsAReceivable,AInventory,ALongATermAAssets