WGU C213 ACTUAL EXAM QUESTIONS REVIEW (Latest Update) KEY QUESTIONS WITH 100% ACCURATE ANSWERS||A+ GRADED!!!

WGU C213 ACTUAL EXAM QUESTIONS REVIEW (Latest 2025- 2026 Update) KEY QUESTIONS WITH 100% ACCURATE ANSWERS||A+ GRADED!!! 1. What does net income measure that the cash flow from operating activities does not? A. Credit sales to customers B. Payments made to suppliers of goods and services C. Depreciation expenses D. Payments to employees or other expenses - ANSWER b 2. Which measure of cash flow is commonly used to evaluate the change in revenue and costs? A. Cash flow from operating activities B. Free cash flow to the firm C. Cash flow from financing activities D. Free cash flow to equity - ANSWER a 3. An analyst is comparing the ratios of two firms and needs to address accounting differences. What would be considered an accounting difference between the two firms? A. The firms have different auditors B. The firms use different inventory methods C. The firms have different fiscal years D. The firms are in different industries - ANSWER b 4. For the year 2013, a firm has a return on equity (ROE) that is greater than return on assets (ROA). Which conclusion would an analyst draw from these numbers? A. The firm is ineffectively using debt. B. The firm is ineffectively managing their inventory C. The firm is effectively managing their inventory D. The firm is effectively using debt - ANSWER d 5. What is an example of an estimate used in recording transactions? A. Deciding whether to expense or depreciate a fixed asset B. Deciding the cost of fixed asset when calculating depreciation expense C. Deciding the salvage value of a fixed asset when calculating depreciation expense D. Deciding whether to sell a fixed asset - ANSWER c 6. What is the coupon rate (yield) of a bond? A. The interest accrued on the bond through expiration B. The interest rate of the bond that can be changed at any time during the life of the bond C. The sum of money that the corporation promises to pay upon expiration of the bond D. The interest rate of the bond that is contractually set upon issuance - ANSWER d 7. If the coupon rate on a particular bond is higher than the market rate of return, at what will the bond sell? A. At a premium B. A the risk-free rate C. At par D. At a discount - ANSWER a 8. Which securities are issued by the U.S. Federal government and are taxable at the federal level? A. Eurobonds B. Municipal bonds C. Corporate bonds D. Treasury bonds - ANSWER d 9. What is the current price of the bond, if the required rate of return on a bond is the same as the coupon rate? A. Greater than the par value of the bond B. Equal to the par value of the bond C. The current prevailing market price of the bond D. Less than the par value of the bond - ANSWER b 10.If the current coupon rate on a bond is 6% and the bond is selling at a 5% discount, what is the yield to maturity on the bond? A. Equal to 5% B. Equal to 6% C. Less than 6% D. Greater than 6% - ANSWER b 11.How is a short-term receivable, with the maturity of less than one year, carried on the balance sheet? A. As a current asset B. As a current liability C. As owner's equity D. As a long-term liability - ANSWER a 12.When is a company that has strong operating revenues and competent management a good investment? A. When the intrinsic value of the price per share is higher than the current stock price B. When the intrinsic value of the price per share is lower than the current stock price C. When the current stock price is currently equal to the intrinsic value D. When the current stock price is overvalued relative to the intrinsic value - ANSWER a 13.Thinking about levels of market efficiency quadrants. Which investment option should be selected assuming a prudent investor wants to maximize their expected return E(R)? Quad 1; Quad 2; Quad 3; Quad 4 A. A B. B C. C D. D E. E - ANSWER a 14.Which security type includes the right to vote for a board of directors? A. Preferred stock B. Money market funds C. Bonds D. Common stock - ANSWER d 15.Economists forecast the probability of recession at 22%. During periods of recession, returns for a company have been -2%. Returns for the company have been 18% during an expansionary period. What is the forecast probability of an expansionary period? A. 80% B. 78% C. 76% D. 82% - ANSWER b 16.What makes the "efficient frontier" efficient? A. It always produces the minimum risk B. It disregards risk to produce the maximum return C. It provides the highest level of risk for a given return D. It maximizes the ratio of expected return to risk - ANSWER d 17.What are 3 components required in calculating weighted average cost of capital (WACC)? A. The market cap of the company B. The desired growth rate C. The amount and required return for common equity, preferred equity and debt D. The marginal tax rate E. The value of preferred stock and debt F. The firm's market value G. The combined total expected growth rate - ANSWER d, e, f 18.What advantage does the Gordon growth model have compared to the capital asset pricing model (CAPM)? A. It requires assumptions about growth that benefit fast growing companies B. It provides an easier to understand and relatively accurate forecast when growth rates are stable C. It is highly accurate in predicting future growth D. It requires the use of accurate known factors, such as future growth rates - ANSWER b 19.How does the weighted average cost of capital affect a company's growth opportunities? A. The higher the cost of capital, the greater the growth opportunities B. Only the cost of debit will affect growth opportunities C. The lower the cost of capital, the lower the growth opportunities D. The lower the cost of capital, the greater the growth opportunities - ANSWER d