WGU C214 Concepts Only Multi Choice Version WINTER 2026

WGU C214 Concepts Only Multi Choice
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Terms in this set (222)


Trading on the NYSE is F
executed without a
specialist (i.e. a market
maker). (T/F)

Stocks and bonds are T
two types of financial
instruments (T/F)

,The matching principle a
in accrual accounting
requires that:
a. Revenues be
recognized when the
earnings process is
complete and matches
expenses to revenues
recognized.
b. Expenses are
matched to the year in
which they are incurred
c. Revenues are
matched to the year in
which they are booked
d. Revenues should be
large enough to match
expenses

A basic equation for the a
balance sheet is:
a. Equity = Assets -
Liabilities
b. Liabilities = Equity +
Assets
c. Assets = Liabilities -
Equity
d. Assets = Equity -
Liabilities

,Why is the Balance b
Sheet known as a
permanent statement?
a. Because the
statement is sent to the
SEC.
b. Because the other
statements are reset at
the end of the fiscal
year
c. Because it is printed
out and archived
d. Because it persists in
the minds of the
shareholders.

How do you calculate d
the change in Retained
Earnings?
a. Ending Retained
Earnings - Change in
Cash
b. EBIT divided by Total
Assets + Dividends
c. EBIT - Change in
Cash - Dividends
d. Net Income -
Dividends

, Which of the following c
is generally true?
a. Gross Profit and
Operating Income are
the same
b. Cost of Goods Sold +
Operating Expenses =
Net Income
c. Operating Income
and EBIT are the same
d. EBIT + Income Taxes
= Net income

Which components are b
part of total assets?
a. Cash, Accounts
Receivable, Short Term
Debt
b. Cash Accounts
Receivable, Inventory,
Long Term Assets
c. Accounts Payable,
Long Term Assets, Long
Term Debt
d. Accounts Payable,
Net Income, Equity