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WGU C214 PRACTICE OA 2025/2026 EXAM QUESTIONS
AND DETAILED CORRECT ANSWERS
Terms in this set (68) Q & A
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
What are the likeliest outcomes if a company outsources the manufacturing of its products to
a foreign country?
-answer- Consumer prices will decrease and Domestic employment will decrease.
What do the content and structure of a balance sheet report?
-answer- 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
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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.
Net Income $ 1,000
Depreciation Expense $ 300
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 this 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
WGU C214 PRACTICE OA 2025/2026 EXAM QUESTIONS
AND DETAILED CORRECT ANSWERS
Terms in this set (68) Q & A
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
What are the likeliest outcomes if a company outsources the manufacturing of its products to
a foreign country?
-answer- Consumer prices will decrease and Domestic employment will decrease.
What do the content and structure of a balance sheet report?
-answer- 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
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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.
Net Income $ 1,000
Depreciation Expense $ 300
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 this 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
