WGU C214 Concepts Only Multi Choice
Version- WGU Exam Study Guide –
Complete Questions with Correct
Detailed Answers | Latest Updated
Version
Prepare effectively for your Western Governors University (WGU) exams with this
comprehensive and well-organized study guide. This resource contains complete exam
questions with correct and detailed answers, designed to help students understand key
concepts and successfully prepare for their WGU assessments.
WGU courses follow a competency-based learning model, meaning students must
demonstrate a strong understanding of course objectives before passing their assessments.
This study guide helps simplify the process by providing structured questions and accurate
explanations that reinforce important topics and improve exam readiness.
What This Study Guide Includes
✔ Complete exam questions covering key WGU course competencies
✔ Correct answers with clear and detailed explanations
✔ Organized format for quick and effective revision
✔ Coverage of commonly tested concepts in WGU assessments
✔ Latest updated version for reliable exam preparation
Why This Study Guide Is Helpful
This resource is designed to help students review faster, understand concepts more clearly,
and build confidence before taking WGU Objective Assessments (OA). Practicing with
structured questions and reviewing detailed answers helps strengthen knowledge and
improve test-taking skills.
, Ideal For
• WGU Objective Assessment (OA) preparation
• Midterm and final exam review
• Self-paced study and revision
• Practicing exam-style questions
• Strengthening understanding of course competencies
A valuable study resource designed to support WGU students in preparing effectively and
performing confidently in their exams.
Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) -answer
False
Stocks and bonds are two types of financial instruments (T/F) -answer True
The matching principle in accrual accounting requires that: -answer Revenues be
recognized when the earnings process is complete and matches expenses to revenues
recognized.
A basic equation for the balance sheet is: -answer Equity = Assets - Liabilities
Why is the Balance Sheet known as a permanent statement? -answer Because the
other statements are reset at the end of the fiscal year
How do you calculate the change in Retained Earnings? -answer Net Income -
Dividends
,Which of the following is generally true? -answer Operating Income and EBIT are the
same
Which components are part of total assets? -answer Cash Accounts Receivable,
Inventory, Long Term Assets
Which components are part of current assets? -answer Inventory, Cash, Accounts
Receivable, Short Term Investments
Which components are part of Total Liabilities? -answer Bonds, Accounts Payable,
Mortgage
When Fixed Assets increase what happens to Cash? -answer Cash decreases
Which is the purpose of the statement of cash flows? -answer explains the change in
cash balance for one period of time
The OIROI (Operating Income Return on Investment) uses what elements on the income
statement? -answer EBIT, Total Assets
Why would a company be interested in the TAT-Total Asset Turnover-ratio?
a -answer How efficient assets are at producing sales
Which of the following gives the largest effective rate (APY) -answer 18.6%
compounded daily
What does the beta coefficient represent? -answer It is a statistically-derived measure
of volatility
, Why is depreciation expense taken out of the net income calculation, yet added back at the
end? -answer Because depreciation expense is tax deductible
Why is the NPV preferred over the IRR? Pick Two -answer 1-It measures the dollar
value 2- It is harder to calculate
What does the Degree of Financial Leverage indicate? -answer The reliance on debt
If a company has a high degree of financial leverage, what does that tell us about the firm's risk
profile? -answer Higher profits to shareholders
What is the cash cycle? -answer The amount of time to regenerate cash
Why is float important to understand? -answer To time cash expenditures
What should a company do to manage its working capital? -answer Collect quickly
and pay slowly
What would be a source of information to determine Replacement Cost? -answer
Building Appraisal
What does the Sarbanes-Oxley Act require companies to do? -answer Have internal
control audits
FINRA (Financial Industry Regulatory Authority) does the following: (pick one) -answer
Prosecutes naughty stock brokers
Version- WGU Exam Study Guide –
Complete Questions with Correct
Detailed Answers | Latest Updated
Version
Prepare effectively for your Western Governors University (WGU) exams with this
comprehensive and well-organized study guide. This resource contains complete exam
questions with correct and detailed answers, designed to help students understand key
concepts and successfully prepare for their WGU assessments.
WGU courses follow a competency-based learning model, meaning students must
demonstrate a strong understanding of course objectives before passing their assessments.
This study guide helps simplify the process by providing structured questions and accurate
explanations that reinforce important topics and improve exam readiness.
What This Study Guide Includes
✔ Complete exam questions covering key WGU course competencies
✔ Correct answers with clear and detailed explanations
✔ Organized format for quick and effective revision
✔ Coverage of commonly tested concepts in WGU assessments
✔ Latest updated version for reliable exam preparation
Why This Study Guide Is Helpful
This resource is designed to help students review faster, understand concepts more clearly,
and build confidence before taking WGU Objective Assessments (OA). Practicing with
structured questions and reviewing detailed answers helps strengthen knowledge and
improve test-taking skills.
, Ideal For
• WGU Objective Assessment (OA) preparation
• Midterm and final exam review
• Self-paced study and revision
• Practicing exam-style questions
• Strengthening understanding of course competencies
A valuable study resource designed to support WGU students in preparing effectively and
performing confidently in their exams.
Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) -answer
False
Stocks and bonds are two types of financial instruments (T/F) -answer True
The matching principle in accrual accounting requires that: -answer Revenues be
recognized when the earnings process is complete and matches expenses to revenues
recognized.
A basic equation for the balance sheet is: -answer Equity = Assets - Liabilities
Why is the Balance Sheet known as a permanent statement? -answer Because the
other statements are reset at the end of the fiscal year
How do you calculate the change in Retained Earnings? -answer Net Income -
Dividends
,Which of the following is generally true? -answer Operating Income and EBIT are the
same
Which components are part of total assets? -answer Cash Accounts Receivable,
Inventory, Long Term Assets
Which components are part of current assets? -answer Inventory, Cash, Accounts
Receivable, Short Term Investments
Which components are part of Total Liabilities? -answer Bonds, Accounts Payable,
Mortgage
When Fixed Assets increase what happens to Cash? -answer Cash decreases
Which is the purpose of the statement of cash flows? -answer explains the change in
cash balance for one period of time
The OIROI (Operating Income Return on Investment) uses what elements on the income
statement? -answer EBIT, Total Assets
Why would a company be interested in the TAT-Total Asset Turnover-ratio?
a -answer How efficient assets are at producing sales
Which of the following gives the largest effective rate (APY) -answer 18.6%
compounded daily
What does the beta coefficient represent? -answer It is a statistically-derived measure
of volatility
, Why is depreciation expense taken out of the net income calculation, yet added back at the
end? -answer Because depreciation expense is tax deductible
Why is the NPV preferred over the IRR? Pick Two -answer 1-It measures the dollar
value 2- It is harder to calculate
What does the Degree of Financial Leverage indicate? -answer The reliance on debt
If a company has a high degree of financial leverage, what does that tell us about the firm's risk
profile? -answer Higher profits to shareholders
What is the cash cycle? -answer The amount of time to regenerate cash
Why is float important to understand? -answer To time cash expenditures
What should a company do to manage its working capital? -answer Collect quickly
and pay slowly
What would be a source of information to determine Replacement Cost? -answer
Building Appraisal
What does the Sarbanes-Oxley Act require companies to do? -answer Have internal
control audits
FINRA (Financial Industry Regulatory Authority) does the following: (pick one) -answer
Prosecutes naughty stock brokers
