WGU C214 PRE-ASSESSMENT EXAM 2026
QUESTIONS AND CORRECT ANSWERS A+
FINANCIAL MANAGEMENT STUDY GUIDE
A company is considering the purchase of a second delivery vehicle for
$80,000. The company estimates that it will be able to expand its delivery
area, thus increasing sales. Incremental net revenues are expected to be as
follows
Year 1$15,000
Year 2$20,000
Year 3$35,000
Year 4$40,000
Year 5$41,000
What is the payback period in years? - CORRECT ANSWER-4
Which capital budget budgeting method is used by firms that wish to
recover their invested capital as quickly as possible? - CORRECT
ANSWER-Payback
To answer this question refer to the Cash Flow worksheet and the IRR
calculations. The company is only interested in accepting projects with an
IRR that exceeds 10%. Assuming the company has sufficient capital for
both projects and is willing to invest for up to 10 years, which project(s)
, would the company accept? - CORRECT ANSWER-neither a or b Pruhart
Tech has an innovative app-based trading platform and expects its growth
to boom in the next few years. Before the company goes public, it wants to
show a strong history of profit and is focusing its efforts on improving its
bottom line on the income statement.
What is a potential negative consequence if the firm focuses solely on profit
maximization? - CORRECT ANSWER-Unethical behavior and potential
scandals
How might a privately held company define shareholder value differently
from a publicly held company? - CORRECT ANSWER-Privately held
companies may value keeping the business within the family
What effect does a current devaluation have on a country's international
trade? - CORRECT ANSWER-it makes a country's exports cheaper
internationally
- devaluation reduces the price of a country's goods and services abroad,
making exports more competitive while potentially increasing the volume
of exports
How does global financing integration benefit corporations? - CORRECT
ANSWER-it provides access to wider range of funding sources and
investment opportunities
QUESTIONS AND CORRECT ANSWERS A+
FINANCIAL MANAGEMENT STUDY GUIDE
A company is considering the purchase of a second delivery vehicle for
$80,000. The company estimates that it will be able to expand its delivery
area, thus increasing sales. Incremental net revenues are expected to be as
follows
Year 1$15,000
Year 2$20,000
Year 3$35,000
Year 4$40,000
Year 5$41,000
What is the payback period in years? - CORRECT ANSWER-4
Which capital budget budgeting method is used by firms that wish to
recover their invested capital as quickly as possible? - CORRECT
ANSWER-Payback
To answer this question refer to the Cash Flow worksheet and the IRR
calculations. The company is only interested in accepting projects with an
IRR that exceeds 10%. Assuming the company has sufficient capital for
both projects and is willing to invest for up to 10 years, which project(s)
, would the company accept? - CORRECT ANSWER-neither a or b Pruhart
Tech has an innovative app-based trading platform and expects its growth
to boom in the next few years. Before the company goes public, it wants to
show a strong history of profit and is focusing its efforts on improving its
bottom line on the income statement.
What is a potential negative consequence if the firm focuses solely on profit
maximization? - CORRECT ANSWER-Unethical behavior and potential
scandals
How might a privately held company define shareholder value differently
from a publicly held company? - CORRECT ANSWER-Privately held
companies may value keeping the business within the family
What effect does a current devaluation have on a country's international
trade? - CORRECT ANSWER-it makes a country's exports cheaper
internationally
- devaluation reduces the price of a country's goods and services abroad,
making exports more competitive while potentially increasing the volume
of exports
How does global financing integration benefit corporations? - CORRECT
ANSWER-it provides access to wider range of funding sources and
investment opportunities
