WGU - C214 FINANCIAL MANAGEMENT – FINAL
EXAM QUESTIONS WITH CORRECT ANSWERS 2026
Statement oof oCash oFlows o- oCORRECT oANSWER o-
Shows othe ochange oin ocash obalance ofor oa operiod oof otime. oFocuses oonly oon oitems owhere
ocash ois oreceived, oo o r ocash ois opaid.
Cash oFlow ofrom oOperating oActivities o(CFO) o- oCORRECT
oANSWER o- oCash oflow othat oa ocompany ogenerates oas oa
oresult oof oday-to-
day obusiness ooperations. oDeals owith oCurrent oAssets oand oCurrent oLiabilities.
Cash oFlow ofrom oInvesting oActivities o(CFI) o- oCORRECT
oANSWER o- oCash oflow othat ois ogenerated ofrom oinvestments
oin olong oterm oassets.
Cash oFlow ofrom oFinancing oActivities o(CFF) o- oCORRECT oANSWER o-
Cash oflow othat ois oused oto ofund othe ocompany. oCash oflow othat ois ogenerated ofrom ofinancing
othe obusiness. oIn ocludes oDebt o& oEquity.
How odoes oan oincrease oin oAccounts oreceivable oimpact oCFO? o- oCORRECT
oANSWER o- oAn oIncrease oin oAccounts oreceivable owill odecrease oCFO
How odoes oan oincrease oin oAccounts opayable oimpact oCFO? o- oCORRECT
oANSWER o- oAn oIncrease oin oAccounts oPayable owill oincrease oCFO
What ofinancial ostatement ois oprepared oat oa opoint oin otime o- oCORRECT oANSWER o-Balance
oSheet
What ofinancial ostatements oare oprepared ofor oa operiod oof otime? o- oCORRECT oANSWER o-·
oIncome oStatement
· Retained oEarnings oStatement
, · Statement oof oCash oFlows
Define oEfficient oFrontier o- oCORRECT oANSWER o-Maximizes oexpected oreturn ofor oa ogiven olevel oof
orisk
Where owould oa orisk oaverse oinvestor ofall oon othe oefficient ofrontier? o- oCORRECT oANSWER o-
100% oBonds
EXAM QUESTIONS WITH CORRECT ANSWERS 2026
Statement oof oCash oFlows o- oCORRECT oANSWER o-
Shows othe ochange oin ocash obalance ofor oa operiod oof otime. oFocuses oonly oon oitems owhere
ocash ois oreceived, oo o r ocash ois opaid.
Cash oFlow ofrom oOperating oActivities o(CFO) o- oCORRECT
oANSWER o- oCash oflow othat oa ocompany ogenerates oas oa
oresult oof oday-to-
day obusiness ooperations. oDeals owith oCurrent oAssets oand oCurrent oLiabilities.
Cash oFlow ofrom oInvesting oActivities o(CFI) o- oCORRECT
oANSWER o- oCash oflow othat ois ogenerated ofrom oinvestments
oin olong oterm oassets.
Cash oFlow ofrom oFinancing oActivities o(CFF) o- oCORRECT oANSWER o-
Cash oflow othat ois oused oto ofund othe ocompany. oCash oflow othat ois ogenerated ofrom ofinancing
othe obusiness. oIn ocludes oDebt o& oEquity.
How odoes oan oincrease oin oAccounts oreceivable oimpact oCFO? o- oCORRECT
oANSWER o- oAn oIncrease oin oAccounts oreceivable owill odecrease oCFO
How odoes oan oincrease oin oAccounts opayable oimpact oCFO? o- oCORRECT
oANSWER o- oAn oIncrease oin oAccounts oPayable owill oincrease oCFO
What ofinancial ostatement ois oprepared oat oa opoint oin otime o- oCORRECT oANSWER o-Balance
oSheet
What ofinancial ostatements oare oprepared ofor oa operiod oof otime? o- oCORRECT oANSWER o-·
oIncome oStatement
· Retained oEarnings oStatement
, · Statement oof oCash oFlows
Define oEfficient oFrontier o- oCORRECT oANSWER o-Maximizes oexpected oreturn ofor oa ogiven olevel oof
orisk
Where owould oa orisk oaverse oinvestor ofall oon othe oefficient ofrontier? o- oCORRECT oANSWER o-
100% oBonds