WGU C214 FINANCIAL MANAGEMENT QUESTIONS & ANSWERS 2026-2027 | MU… EXAM
P R O F E S S I O N A L P R A C T I C E M AT E R I A L S
WGU C214 Financial
Management Questions &
Answers 2026-2027 |
Multiple Attempt Success
Guide
Verified Answers Exam Ready With Rationales
60 QUESTIONS
DOCUMENT OVERVIEW
This document provides 60 verified questions along with their correct answers, specifically tailored for
financial management study. It encompasses key concepts within the field, ensuring comprehensive
coverage of essential principles. Students can utilize this resource for effective study, thorough review, and
preparation for certification exams, enhancing their understanding and application of financial
management topics.
CONTENTS
Financial Statements Q1–Q14
Investment Analysis Q15–Q28
Page 1
, Risk and Return Q29–Q39
Capital Budgeting Q40–Q50
Cost of Capital Q51–Q60
E XA M Q U EST I O N S
Q1 QUESTION 1 OF 60
What standards are used to help US investors understand and compare foreign financial statements to
domestic financial statements?
CORRECT ANSWER
International Financial Reporting Standards
Q2 QUESTION 2 OF 60
When a company is optimizing its resources and maintaining or improving productivity, they are engaging in
what hypothesis
CORRECT ANSWER
Efficient Market Hypothesis
Q3 QUESTION 3 OF 60
Describe what an income statement is in one sentence?
CORRECT ANSWER
It covers a period of time and starts with sales, takes out expenses, and ends with net income.
Q4 QUESTION 4 OF 60
Page 2
, What is the difference between taxable income and accounting income?
CORRECT ANSWER
Accounting income is reported as net income on the income statement whereas Taxable income is used to
determine the amount of tax a firm must pay.
Q5 QUESTION 5 OF 60
A company has a trial balance that shows $13,000 in bonds payable. On which financial statement should this
be shown?
CORRECT ANSWER
This would be shown on the Balance Sheet under Long Term Liabilities
Q6 QUESTION 6 OF 60
Which is the principal account comprising Cash Flow from Investing
CORRECT ANSWER
The principal account for CFI is PP& E
Q7 QUESTION 7 OF 60
What is the cash effect on the Statement of Cash Flow when current liabilities decline?
CORRECT ANSWER
Results in a decrease in cash
Q8 QUESTION 8 OF 60
Page 3
P R O F E S S I O N A L P R A C T I C E M AT E R I A L S
WGU C214 Financial
Management Questions &
Answers 2026-2027 |
Multiple Attempt Success
Guide
Verified Answers Exam Ready With Rationales
60 QUESTIONS
DOCUMENT OVERVIEW
This document provides 60 verified questions along with their correct answers, specifically tailored for
financial management study. It encompasses key concepts within the field, ensuring comprehensive
coverage of essential principles. Students can utilize this resource for effective study, thorough review, and
preparation for certification exams, enhancing their understanding and application of financial
management topics.
CONTENTS
Financial Statements Q1–Q14
Investment Analysis Q15–Q28
Page 1
, Risk and Return Q29–Q39
Capital Budgeting Q40–Q50
Cost of Capital Q51–Q60
E XA M Q U EST I O N S
Q1 QUESTION 1 OF 60
What standards are used to help US investors understand and compare foreign financial statements to
domestic financial statements?
CORRECT ANSWER
International Financial Reporting Standards
Q2 QUESTION 2 OF 60
When a company is optimizing its resources and maintaining or improving productivity, they are engaging in
what hypothesis
CORRECT ANSWER
Efficient Market Hypothesis
Q3 QUESTION 3 OF 60
Describe what an income statement is in one sentence?
CORRECT ANSWER
It covers a period of time and starts with sales, takes out expenses, and ends with net income.
Q4 QUESTION 4 OF 60
Page 2
, What is the difference between taxable income and accounting income?
CORRECT ANSWER
Accounting income is reported as net income on the income statement whereas Taxable income is used to
determine the amount of tax a firm must pay.
Q5 QUESTION 5 OF 60
A company has a trial balance that shows $13,000 in bonds payable. On which financial statement should this
be shown?
CORRECT ANSWER
This would be shown on the Balance Sheet under Long Term Liabilities
Q6 QUESTION 6 OF 60
Which is the principal account comprising Cash Flow from Investing
CORRECT ANSWER
The principal account for CFI is PP& E
Q7 QUESTION 7 OF 60
What is the cash effect on the Statement of Cash Flow when current liabilities decline?
CORRECT ANSWER
Results in a decrease in cash
Q8 QUESTION 8 OF 60
Page 3
