WGU C214 Finance Management
Question and answers verified to pass
2025/2026
By making decisions that keep the control of the business with the owners - correct answer ✔How can
a private firm appropriately maximize shareholder value?
Because international investing in a global marketplace is the concern of American investors - correct
answer ✔Why are American regulators focused on international investing in a global marketplace?
Bonds - correct answer ✔What is one of the two basic types of financial instruments?
Domestic employment will decrease
Consumer prices will decrease - correct answer ✔If a company outsources the manufacturing of its
products to a foreign country, what are the likeliest outcomes?
It reports the assets, liabilities, and equity at a point in time - correct answer ✔What is true about the
content and structure of a balance sheet?
Revenues and expenses are always recognized in the same period for accounting income purposes and
income for tax purposes - correct answer ✔Which statement accurately explains the recognition of
revenues and expenses under accounting income and income for tax purposes?
Assets = liabilities + equity - correct answer ✔What is the basic equation for a balance sheet?
A firm's purchase and sale of long-term assets - correct answer ✔What do cash flows from investing
activities generally relate to?
, Cash sales to customers - correct answer ✔Which transaction is reflected in cash flow from operating
activities?
Cash available for distribution after funding required reinvestment - correct answer ✔What does free
cash flow represent?
The firms have different fiscal years - correct answer ✔An analyst is comparing the ratios of two
different firms and needs to address timing differences.
What would be considered an example of a timing difference between the two firms?
The firm is generating higher returns to owners than the industry - correct answer ✔A firm has a ROE
of 0.27 and the industry average ROE is 0.24. Which conclusion would an analyst draw when comparing
the firm to the industry?
Last in, first out method - correct answer ✔What is an example of an inventory method for accounting
purposes?
The product must have been delivered. - correct answer ✔What must have taken place for a firm to
recognize revenue, in order for the firm to comply with the accrual accounting rules?
The sum of money that the corporation promises to pay upon expiration of the bond - correct answer
✔What is the par value (face value) of a bond?
Intrinsic value is 25% below the current stock price - correct answer ✔A broker is considering
purchasing common stock in a company that has average but consistent operating performance.
Which factor should lead the broker to purchase shares in this company?
Question and answers verified to pass
2025/2026
By making decisions that keep the control of the business with the owners - correct answer ✔How can
a private firm appropriately maximize shareholder value?
Because international investing in a global marketplace is the concern of American investors - correct
answer ✔Why are American regulators focused on international investing in a global marketplace?
Bonds - correct answer ✔What is one of the two basic types of financial instruments?
Domestic employment will decrease
Consumer prices will decrease - correct answer ✔If a company outsources the manufacturing of its
products to a foreign country, what are the likeliest outcomes?
It reports the assets, liabilities, and equity at a point in time - correct answer ✔What is true about the
content and structure of a balance sheet?
Revenues and expenses are always recognized in the same period for accounting income purposes and
income for tax purposes - correct answer ✔Which statement accurately explains the recognition of
revenues and expenses under accounting income and income for tax purposes?
Assets = liabilities + equity - correct answer ✔What is the basic equation for a balance sheet?
A firm's purchase and sale of long-term assets - correct answer ✔What do cash flows from investing
activities generally relate to?
, Cash sales to customers - correct answer ✔Which transaction is reflected in cash flow from operating
activities?
Cash available for distribution after funding required reinvestment - correct answer ✔What does free
cash flow represent?
The firms have different fiscal years - correct answer ✔An analyst is comparing the ratios of two
different firms and needs to address timing differences.
What would be considered an example of a timing difference between the two firms?
The firm is generating higher returns to owners than the industry - correct answer ✔A firm has a ROE
of 0.27 and the industry average ROE is 0.24. Which conclusion would an analyst draw when comparing
the firm to the industry?
Last in, first out method - correct answer ✔What is an example of an inventory method for accounting
purposes?
The product must have been delivered. - correct answer ✔What must have taken place for a firm to
recognize revenue, in order for the firm to comply with the accrual accounting rules?
The sum of money that the corporation promises to pay upon expiration of the bond - correct answer
✔What is the par value (face value) of a bond?
Intrinsic value is 25% below the current stock price - correct answer ✔A broker is considering
purchasing common stock in a company that has average but consistent operating performance.
Which factor should lead the broker to purchase shares in this company?
