C214 OA EXAM (2022/2023) ACCURATE QUESTIONS AND VERIFIED
CORRECT SOLUTIONS WITH EXPLANATIONS || 100% GUARANTEED
PASS <RECENT VERSION>
Module 1: Introduction to Finance
1. What is the primary goal of corporate financial management?
A) Maximize market share
B) Maximize the stock price for the shareholders
C) Maximize employee satisfaction
D) Minimize costs
2. What is an Agency Problem?
A) A problem with government regulations
B) A conflict of interest between management (agent) and shareholders
(principal)
C) A problem with issuing new stock
D) A conflict between two competing companies
3. Who are the owners of a corporation?
A) The Board of Directors
B) The Chief Executive Officer (CEO)
, C) The Shareholders
D) The Bondholders
Module 2: Financial Statements and Analysis
4. Which financial statement shows a company's financial position at a
specific point in time?
A) Income Statement
B) Statement of Cash Flows
C) Balance Sheet
D) Statement of Retained Earnings
5. The equation for the Balance Sheet is:
A) Revenues - Expenses = Net Income
B) Assets = Liabilities + Owners' Equity
C) Net Income = Revenue - Cost of Goods Sold
D) Cash Inflows = Cash Outflows
6. Which financial statement reports revenues and expenses over a period
of time?
A) Balance Sheet
B) Income Statement
, C) Statement of Cash Flows
D) Statement of Shareholders' Equity
7. Net Income is found on which statement?
A) Balance Sheet and Statement of Cash Flows
B) Income Statement and Statement of Retained Earnings
C) Only the Balance Sheet
D) Only the Income Statement
8. Depreciation is:
A) A cash expense
B) A non-cash expense that reduces taxable income
C) A liability on the balance sheet
D) The cost of goods sold
9. An increase in accounts receivable represents:
A) A source of cash
B) A use of cash
C) An increase in net income
D) A decrease in liabilities
10.A decrease in inventory represents:
A) A source of cash
CORRECT SOLUTIONS WITH EXPLANATIONS || 100% GUARANTEED
PASS <RECENT VERSION>
Module 1: Introduction to Finance
1. What is the primary goal of corporate financial management?
A) Maximize market share
B) Maximize the stock price for the shareholders
C) Maximize employee satisfaction
D) Minimize costs
2. What is an Agency Problem?
A) A problem with government regulations
B) A conflict of interest between management (agent) and shareholders
(principal)
C) A problem with issuing new stock
D) A conflict between two competing companies
3. Who are the owners of a corporation?
A) The Board of Directors
B) The Chief Executive Officer (CEO)
, C) The Shareholders
D) The Bondholders
Module 2: Financial Statements and Analysis
4. Which financial statement shows a company's financial position at a
specific point in time?
A) Income Statement
B) Statement of Cash Flows
C) Balance Sheet
D) Statement of Retained Earnings
5. The equation for the Balance Sheet is:
A) Revenues - Expenses = Net Income
B) Assets = Liabilities + Owners' Equity
C) Net Income = Revenue - Cost of Goods Sold
D) Cash Inflows = Cash Outflows
6. Which financial statement reports revenues and expenses over a period
of time?
A) Balance Sheet
B) Income Statement
, C) Statement of Cash Flows
D) Statement of Shareholders' Equity
7. Net Income is found on which statement?
A) Balance Sheet and Statement of Cash Flows
B) Income Statement and Statement of Retained Earnings
C) Only the Balance Sheet
D) Only the Income Statement
8. Depreciation is:
A) A cash expense
B) A non-cash expense that reduces taxable income
C) A liability on the balance sheet
D) The cost of goods sold
9. An increase in accounts receivable represents:
A) A source of cash
B) A use of cash
C) An increase in net income
D) A decrease in liabilities
10.A decrease in inventory represents:
A) A source of cash
