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WGU C214 Pre-Assement 2025/2026
Exam Questions with 100% Correct
Answers | Latest Update
How can a private firm appropriately maximize shareholder value? - 🧠 ANSWER
✔✔By making decisions that keep the control of the business with the owners
Why are American regulators focused on international investing in a global
marketplace? - 🧠 ANSWER ✔✔Because international investing in a global
marketplace is the concern of
American investors
What is one of the two basic types of financial instruments? - 🧠 ANSWER
✔✔Bonds
If a company outsources the manufacturing of its products to a foreign country,
what are the likeliest
outcomes? - 🧠 ANSWER ✔✔Consumer prices will decrease and Domestic
employment will decrease.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
1
STATEMENT. ALL RIGHTS RESERVED
,2
What is true about the content and structure of a balance sheet? - 🧠 ANSWER
✔✔It reports the assets, liabilities, and equity at a point in time.
A company reported an increase in accounts receivable of $5,000 during the recent
period. Half of this
amount is expected to be collected next period.
How will this change in accounts receivable affect the cash flows from the
operating activities section? - 🧠 ANSWER ✔✔The change will decrease cash
flows from operations by $5,000.
Which statement accurately explains the recognition of revenues and expenses
under accounting income
and income for tax purposes? - 🧠 ANSWER ✔✔Revenues and expenses may be
recognized in one period for accounting income purposes and in a different period
for income tax purposes.
Selected Data for 20x2 for ABD Inc.
Netincome $ 1,000
Depreciation expense $ 300
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
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STATEMENT. ALL RIGHTS RESERVED
, 3
Change in operating assets $ 600
Change in net property, plant, and equipment$ 5,000
Changes in long-term liabilities $ 1,000
Dividends paid $ 200
What is the firm's cash flow from investments, using the data above and assuming
no asset disposals? - 🧠 ANSWER ✔✔$5,300 outflow
What is the basic equation for a balance sheet? - 🧠 ANSWER ✔✔Assets =
Liabilities + Equity
What do cash flows from investing activities generally relate to? - 🧠 ANSWER
✔✔A firm's purchase and sale of long-term assets
Which transaction is reflected in cash flow from operating activities? - 🧠
ANSWER ✔✔Cash sales to customers
What does free cash flow represent? - 🧠 ANSWER ✔✔Cash available for
distribution after funding required reinvestment
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
WGU C214 Pre-Assement 2025/2026
Exam Questions with 100% Correct
Answers | Latest Update
How can a private firm appropriately maximize shareholder value? - 🧠 ANSWER
✔✔By making decisions that keep the control of the business with the owners
Why are American regulators focused on international investing in a global
marketplace? - 🧠 ANSWER ✔✔Because international investing in a global
marketplace is the concern of
American investors
What is one of the two basic types of financial instruments? - 🧠 ANSWER
✔✔Bonds
If a company outsources the manufacturing of its products to a foreign country,
what are the likeliest
outcomes? - 🧠 ANSWER ✔✔Consumer prices will decrease and Domestic
employment will decrease.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
1
STATEMENT. ALL RIGHTS RESERVED
,2
What is true about the content and structure of a balance sheet? - 🧠 ANSWER
✔✔It reports the assets, liabilities, and equity at a point in time.
A company reported an increase in accounts receivable of $5,000 during the recent
period. Half of this
amount is expected to be collected next period.
How will this change in accounts receivable affect the cash flows from the
operating activities section? - 🧠 ANSWER ✔✔The change will decrease cash
flows from operations by $5,000.
Which statement accurately explains the recognition of revenues and expenses
under accounting income
and income for tax purposes? - 🧠 ANSWER ✔✔Revenues and expenses may be
recognized in one period for accounting income purposes and in a different period
for income tax purposes.
Selected Data for 20x2 for ABD Inc.
Netincome $ 1,000
Depreciation expense $ 300
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
, 3
Change in operating assets $ 600
Change in net property, plant, and equipment$ 5,000
Changes in long-term liabilities $ 1,000
Dividends paid $ 200
What is the firm's cash flow from investments, using the data above and assuming
no asset disposals? - 🧠 ANSWER ✔✔$5,300 outflow
What is the basic equation for a balance sheet? - 🧠 ANSWER ✔✔Assets =
Liabilities + Equity
What do cash flows from investing activities generally relate to? - 🧠 ANSWER
✔✔A firm's purchase and sale of long-term assets
Which transaction is reflected in cash flow from operating activities? - 🧠
ANSWER ✔✔Cash sales to customers
What does free cash flow represent? - 🧠 ANSWER ✔✔Cash available for
distribution after funding required reinvestment
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
