WGU C214 OA FINANCIAL MANAGEMENT

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WGU C214 OA FINANCIAL MANAGEMENT

EXAM 2025 | ACCURATE REAL EXAM

QUESTIONS AND ANSWERS WITH PRACTICE

EXAM AND STUDY GUIDE | GUARANTEED PASS

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• Is trading on the NYSE executed without a specialist (i.e., a

market maker)? (T/F)

ANSWER: False

• Are stocks and bonds two types of financial instruments?

(T/F)

ANSWER: True

3. The matching principle in accrual accounting requires that:

• Revenues be recognized when the earnings process is

complete and matches expenses to revenues recognized

• Expenses are matched to the year in which they are incurred
• Revenues are matched to the year in which they are booked
• Revenues should be large enough to match expenses

ANSWER: a

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4. A basic equation for the balance sheet is:

• Equity = Assets - Liabilities
• Liabilities = Equity + Assets
• Assets = Liabilities - Equity
• Assets = Equity - Liabilities

ANSWER: a

• Why is the Balance Sheet known as a permanent statement?
• Because the statement is sent to the SEC
• Because the other statements are reset at the end of the

fiscal year

• Because it is printed out and archived
• Because it persists in the minds of the shareholders

ANSWER: b

• How do you calculate the change in Retained Earnings?
• Ending Retained Earnings - Change in Cash
• EBIT divided by Total Assets + Dividends

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• EBIT - Change in Cash - Dividends
• Net Income - Dividends

ANSWER: d

• Which of the following is generally true?
• Gross Profit and Operating Income are the same
• Cost of Goods Sold + Operating Expenses = Net Income
• Operating Income and EBIT are the same
• EBIT + Income Taxes = Net income

ANSWER: c

• Which components are part of total assets?
• Cash, Accounts Receivable, Short Term Debt
• Cash, Accounts Receivable, Inventory, Long Term Assets
• Accounts Payable, Long Term Assets, Long Term Debt
• Accounts Payable, Net Income, Equity

ANSWER: b

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• Which components are part of current assets?
• Cash, Accounts Receivable, Property Plant & Equipment
• Accounts Receivable, Accounts Payable, Inventory
• Long Term Debt, Property Plant & Equipment, Common

Stock

• Inventory, Cash, Accounts Receivable, Short Term

Investments

ANSWER: d

• Which components are part of Total Liabilities?
• Accounts Payable, Accounts Receivable, Short Term Debt
• Long Term Debt, Common Stock, Retained Earnings
• Bonds, Accounts Payable, Mortgage
• Common Stock, Long Term Debt, Short Term Investments

ANSWER: c

• When Fixed Assets increase, what happens to Cash?
• Cash stays the same
• Cash increases
• Cash decreases