WGU C214 Financial Management OA
Study Set- WGU Exam Study Guide –
Complete Questions with Correct
Detailed Answers | Latest Updated
Version
Prepare effectively for your Western Governors University (WGU) exams with this
comprehensive and well-organized study guide. This resource contains complete exam
questions with correct and detailed answers, designed to help students understand key
concepts and successfully prepare for their WGU assessments.
WGU courses follow a competency-based learning model, meaning students must
demonstrate a strong understanding of course objectives before passing their assessments.
This study guide helps simplify the process by providing structured questions and accurate
explanations that reinforce important topics and improve exam readiness.
What This Study Guide Includes
✔ Complete exam questions covering key WGU course competencies
✔ Correct answers with clear and detailed explanations
✔ Organized format for quick and effective revision
✔ Coverage of commonly tested concepts in WGU assessments
✔ Latest updated version for reliable exam preparation
Why This Study Guide Is Helpful
This resource is designed to help students review faster, understand concepts more clearly,
and build confidence before taking WGU Objective Assessments (OA). Practicing with
structured questions and reviewing detailed answers helps strengthen knowledge and
improve test-taking skills.
, Ideal For
• WGU Objective Assessment (OA) preparation
• Midterm and final exam review
• Self-paced study and revision
• Practicing exam-style questions
• Strengthening understanding of course competencies
A valuable study resource designed to support WGU students in preparing effectively and
performing confidently in their exams.
Trading on the NYSE is executed without a specialist (i.e. a market maker). True or False? -
answer False
Stocks and Bonds are two types of financial instruments. True or False? -answer True
When revenue is matched with cost of sales in an Income statement it is called? -answer
Matching principle
Basic balance sheet equation is what? -answer Equity = Assets - Liabilities
Why is the balance sheet known as the permanent statement? -answer Because the
other statements are reset at the end of the fiscal year.
How do you calculate the change in retained earnings? -answer Net income-dividends
Sales - Cost of Sales - other expenses = -answer Operating Income or EBiT
, Name four accounts that are part of total assets? -answer Cash, Accounts receivable,
inventory, long term assets
Name three accounts that are part of total liabilities? -answer Bonds, accounts
payable and mortgage
Name four accounts that are part of current assets? -answer Inventory, cash, accounts
receivable and short term investments.
Name three accounts that are only included in cash flow from financing? -answer
Common stock, dividends paid and bonds payable
Define the statement of cash flows? -answer Calculated for the same period of time
as the incomes statement is calculated based on the income statement and changes in the
balance sheet is one of the three basic accounting statements.
When fixed assets increase what happens to cash? -answer Cash will decrease
What is the purpose of the statement of cash flows? -answer Explains the change in
cash over the course of the specified time frame.
Suppose the inventory turnover of a company is higher than the industry. Based on this
observation, which of the following is most likely? -answer The firm has too little
inventory resulting in lost sales or stock-outs.
If a company wishes to obtain a bank loan, will it want to have a higher current ratio or a lower
current ratio? -answer Higher
Study Set- WGU Exam Study Guide –
Complete Questions with Correct
Detailed Answers | Latest Updated
Version
Prepare effectively for your Western Governors University (WGU) exams with this
comprehensive and well-organized study guide. This resource contains complete exam
questions with correct and detailed answers, designed to help students understand key
concepts and successfully prepare for their WGU assessments.
WGU courses follow a competency-based learning model, meaning students must
demonstrate a strong understanding of course objectives before passing their assessments.
This study guide helps simplify the process by providing structured questions and accurate
explanations that reinforce important topics and improve exam readiness.
What This Study Guide Includes
✔ Complete exam questions covering key WGU course competencies
✔ Correct answers with clear and detailed explanations
✔ Organized format for quick and effective revision
✔ Coverage of commonly tested concepts in WGU assessments
✔ Latest updated version for reliable exam preparation
Why This Study Guide Is Helpful
This resource is designed to help students review faster, understand concepts more clearly,
and build confidence before taking WGU Objective Assessments (OA). Practicing with
structured questions and reviewing detailed answers helps strengthen knowledge and
improve test-taking skills.
, Ideal For
• WGU Objective Assessment (OA) preparation
• Midterm and final exam review
• Self-paced study and revision
• Practicing exam-style questions
• Strengthening understanding of course competencies
A valuable study resource designed to support WGU students in preparing effectively and
performing confidently in their exams.
Trading on the NYSE is executed without a specialist (i.e. a market maker). True or False? -
answer False
Stocks and Bonds are two types of financial instruments. True or False? -answer True
When revenue is matched with cost of sales in an Income statement it is called? -answer
Matching principle
Basic balance sheet equation is what? -answer Equity = Assets - Liabilities
Why is the balance sheet known as the permanent statement? -answer Because the
other statements are reset at the end of the fiscal year.
How do you calculate the change in retained earnings? -answer Net income-dividends
Sales - Cost of Sales - other expenses = -answer Operating Income or EBiT
, Name four accounts that are part of total assets? -answer Cash, Accounts receivable,
inventory, long term assets
Name three accounts that are part of total liabilities? -answer Bonds, accounts
payable and mortgage
Name four accounts that are part of current assets? -answer Inventory, cash, accounts
receivable and short term investments.
Name three accounts that are only included in cash flow from financing? -answer
Common stock, dividends paid and bonds payable
Define the statement of cash flows? -answer Calculated for the same period of time
as the incomes statement is calculated based on the income statement and changes in the
balance sheet is one of the three basic accounting statements.
When fixed assets increase what happens to cash? -answer Cash will decrease
What is the purpose of the statement of cash flows? -answer Explains the change in
cash over the course of the specified time frame.
Suppose the inventory turnover of a company is higher than the industry. Based on this
observation, which of the following is most likely? -answer The firm has too little
inventory resulting in lost sales or stock-outs.
If a company wishes to obtain a bank loan, will it want to have a higher current ratio or a lower
current ratio? -answer Higher
