WGU C214 Financial Management – Objective
Assessment (OA) | Verified Questions & Answers | 2025
Edition | Mastery Guide
How can a private firm appropriately maximize shareholder value?
- By increasing the firm’s stock price
- By reducing the firm's labor
- 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?
- Because international investing in a global marketplace is the
concern of American investors
- Because an exclusively domestically focused regulatory approach is
still effective
- Because weaving international concerns into domestic policy is cost-
effective
- Because other jurisdictions have the same priorities and solutions as
the United States
Because international investing in a global marketplace is the concern
of American investors
What is one of the two basic types of financial instruments?
- Checking accounts
- Bonds
,- Euros
- Hedge funds
Bonds
What are the likeliest outcomes if a company outsources the
manufacturing of its products to a foreign country?
Choose 2 answers.
- Consumer prices will decrease.
- Tariffs will decrease.
- Domestic wages will increase.
- Production capacity will decrease.
- Domestic employment will decrease.
Consumer prices will decrease.
Domestic employment will decrease.
What do the content and structure of a balance sheet report?
- The gains and losses at a point in time
- The revenues and expenses for a period of time
- The assets, liabilities, and equity at a point in time
- The expenses, assets, and liabilities for a period in time
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?
- The change will decrease cash flows from operations by $2,500.
- The change will increase cash flows from operations by $2,500.
- The change will increase cash flows from operations by $5,000.
- The change will decrease cash flows from operations by $5,000.
The change will decrease cash flows from operations by $5,000.
Which statement accurately explains the recognition of revenues and
expenses under accounting income and income for tax purposes?
Revenue and expenses recognized must be matched with assets.
Revenue and expenses recognized must be matched with liabilities.
Revenues and expenses may be recognized in one period for
accounting income purposes and in a different period for income tax
purposes.
Revenues and expenses are always recognized in the same period for
accounting income purposes and income for tax purposes.
Revenues and expenses may be recognized in one period for
accounting income purposes and in a different period for income tax
purposes.
Selected Data for 20x2 for ABD Inc.
Net Income$ 1,000Depreciation
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?
$5,000 inflow
$5,000 outflow
$5,300 inflow
$5,300 outflow
$5,300 outflow
What is the basic equation for a balance sheet?
Revenue + expenses = income
Assets = Liabilities − Equity
Revenue + Assets = Equity
Assets = Liabilities + Equity
Assets = Liabilities + Equity
What do cash flows from investing activities generally relate to?
A firm’s debt and equity transactions
A firm’s purchase and sale of long-term assets
A firm’s sale of goods and services
A firm’s non-cash transactions
A firm's purchase and sale of long-term assets
Which transaction is reflected in cash flow from operating activities?
Assessment (OA) | Verified Questions & Answers | 2025
Edition | Mastery Guide
How can a private firm appropriately maximize shareholder value?
- By increasing the firm’s stock price
- By reducing the firm's labor
- 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?
- Because international investing in a global marketplace is the
concern of American investors
- Because an exclusively domestically focused regulatory approach is
still effective
- Because weaving international concerns into domestic policy is cost-
effective
- Because other jurisdictions have the same priorities and solutions as
the United States
Because international investing in a global marketplace is the concern
of American investors
What is one of the two basic types of financial instruments?
- Checking accounts
- Bonds
,- Euros
- Hedge funds
Bonds
What are the likeliest outcomes if a company outsources the
manufacturing of its products to a foreign country?
Choose 2 answers.
- Consumer prices will decrease.
- Tariffs will decrease.
- Domestic wages will increase.
- Production capacity will decrease.
- Domestic employment will decrease.
Consumer prices will decrease.
Domestic employment will decrease.
What do the content and structure of a balance sheet report?
- The gains and losses at a point in time
- The revenues and expenses for a period of time
- The assets, liabilities, and equity at a point in time
- The expenses, assets, and liabilities for a period in time
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?
- The change will decrease cash flows from operations by $2,500.
- The change will increase cash flows from operations by $2,500.
- The change will increase cash flows from operations by $5,000.
- The change will decrease cash flows from operations by $5,000.
The change will decrease cash flows from operations by $5,000.
Which statement accurately explains the recognition of revenues and
expenses under accounting income and income for tax purposes?
Revenue and expenses recognized must be matched with assets.
Revenue and expenses recognized must be matched with liabilities.
Revenues and expenses may be recognized in one period for
accounting income purposes and in a different period for income tax
purposes.
Revenues and expenses are always recognized in the same period for
accounting income purposes and income for tax purposes.
Revenues and expenses may be recognized in one period for
accounting income purposes and in a different period for income tax
purposes.
Selected Data for 20x2 for ABD Inc.
Net Income$ 1,000Depreciation
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?
$5,000 inflow
$5,000 outflow
$5,300 inflow
$5,300 outflow
$5,300 outflow
What is the basic equation for a balance sheet?
Revenue + expenses = income
Assets = Liabilities − Equity
Revenue + Assets = Equity
Assets = Liabilities + Equity
Assets = Liabilities + Equity
What do cash flows from investing activities generally relate to?
A firm’s debt and equity transactions
A firm’s purchase and sale of long-term assets
A firm’s sale of goods and services
A firm’s non-cash transactions
A firm's purchase and sale of long-term assets
Which transaction is reflected in cash flow from operating activities?
