WGU C214 Practice OA Question and
answers rated A+ 2025/2026
How can a private firm appropriately maximize shareholder value? - correct 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? - correct
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? - correct answer ✔Bonds
What are the likeliest outcomes if a company outsources the manufacturing of its products to a foreign
country? - correct answer ✔Consumer prices will decrease and Domestic employment will decrease.
What do the content and structure of a balance sheet report? - correct 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 receivable affect the
cash flows from the operating activities section? - correct 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? - correct 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? -
correct answer ✔$5,300 outflow
What is the basic equation for a balance sheet? - correct answer ✔Assets = Liabilities + Equity
What do cash flows from investing activities generally relate to? - correct answer ✔A firm's purchase
and sale of long-term assets
Which transaction is reflected in cash flow from operating activities? - correct answer ✔Cash sales to
customers
What does free cash flow represent? - correct answer ✔Cash available for distribution after funding
required reinvestment
An analyst is comparing the ratios of two firms and needs to address timing differences.What is an
example of a timing difference between these two firms? - correct answer ✔The firms have different
fiscal years.
A company's year-end balance sheet for 2013 shows the following:
Accounts Receivable: $900
Inventory: $1,200
Fixed Assets: $1,000
Accounts Payable: $1,300
Sales: $4,000
answers rated A+ 2025/2026
How can a private firm appropriately maximize shareholder value? - correct 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? - correct
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? - correct answer ✔Bonds
What are the likeliest outcomes if a company outsources the manufacturing of its products to a foreign
country? - correct answer ✔Consumer prices will decrease and Domestic employment will decrease.
What do the content and structure of a balance sheet report? - correct 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 receivable affect the
cash flows from the operating activities section? - correct 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? - correct 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? -
correct answer ✔$5,300 outflow
What is the basic equation for a balance sheet? - correct answer ✔Assets = Liabilities + Equity
What do cash flows from investing activities generally relate to? - correct answer ✔A firm's purchase
and sale of long-term assets
Which transaction is reflected in cash flow from operating activities? - correct answer ✔Cash sales to
customers
What does free cash flow represent? - correct answer ✔Cash available for distribution after funding
required reinvestment
An analyst is comparing the ratios of two firms and needs to address timing differences.What is an
example of a timing difference between these two firms? - correct answer ✔The firms have different
fiscal years.
A company's year-end balance sheet for 2013 shows the following:
Accounts Receivable: $900
Inventory: $1,200
Fixed Assets: $1,000
Accounts Payable: $1,300
Sales: $4,000
