WGU C214 FINANCIAL MANAGEMENT OA EXAM 2025 | ACTUAL EXAM AND PRACTICE EXAM TEST BANK WITH STUDY GUIDE | ACCURATE AND VERIFIED FOR GUARANTEED PASS | GRADED A | LATEST UPDATE 2025/2026

WGU C214 Financial Management OA Study Set
Questions and Answers
Updated Latest (Verified Answers)




1. Trading on the NYSE is executed without a specialist (i.e. a market maker). Tru
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e or False?
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Answer False g




2. Stocks and Bonds are two types of financial instruments.True or False?
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Answer -True g




3. When revenue is matched with cost of sales in an Income statement it is calle
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d?

Answer Matching principle
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4. Basic balance sheet equation is what?
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Answer Equity = Assets - Liabilities
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5. Why is the balance sheet known as the permanent statement?
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Answer Because the other statements are reset at the end of the fiscal year.
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6. How do you calculate the change in retained earnings?
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Answer Net income-divi- dends
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,7. Sales - Cost of Sales - other expenses =
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Answer Operating Income or EBiT
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8. Name four accounts that are part of total assets?
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Answer Cash, Accounts receivable, inventory, long term assets
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9. Name three accounts that are part of total liabilities?
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Answer Bonds, accounts payable and mortgage
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10. Name four accounts that are part of current assets?
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Answer Inventory, cash, ac- counts receivable and short term investments.
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11. Name three accounts that are only included in cash flow from financing?-
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Answer Common stock, dividends paid and bonds payable
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12. Define the statement of cash flows?
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Answer Calculated for the same period of time as the incomes statement is calculated ba
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sed on the income statement and changes in the balance sheet is one of the three basic ac
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counting statements.
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13. When fixed assets increase what happens to cash?
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Answer Cash will decrease g g g




14. What is the purpose of the statement of cash flows?
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Answer Explains the change in cash over the course of the specified time frame.
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, 15. Suppose the inventory turnover of a company is higher than the industry. Bas
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ed on this observation, which of the following is most likely?
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Answer The firm has too little inventory resulting in lost sales or stock-outs.
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16. If a company wishes to obtain a bank loan, will it want to have a higher curr
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ent ratio or a lower current ratio?
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Answer Higher g




17. The Operating Income Return on Investment (OIROI) uses what elements on
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the income statement?
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Answer EBIT and total assets g g g g




18. Why would a company be interested in the Total Asset Turnover (TAT) rat
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io?

Answer To see how efficient are at producing sales
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19. What annual interest will be paid for a zero coupon bond?
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Answer 0% g




20. What is the most significant characteristic of subordinated debt?
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Answer Senior debt is paid off first
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