WGU C214 FINANCIAL
MANAGEMENT OA ACTUAL EXAM
150 + QUESTIONS AND CORRECT
ANSWERS 2025/2026 GRADED A+
LATEST UPDATE !!!
, 1. Trading on the NYSE is executed without a specialist (i.e. a market maker). True or False? CORRECT
ANSWER False
2. Stocks and Bonds are two types of financial instruments. True or False? CORRECT ANSWER -
True
3. When revenue is matched with cost of sales in an Income statement it is called? CORRECT ANSWER
Matching principle
4. Basic balance sheet equation is what? CORRECT ANSWER Equity = Assets - Liabilities
5. Why is the balance sheet known as the permanent statement? CORRECT ANSWER Because the other
statements are reset at the end of the fiscal year.
6. How do you calculate the change in retained earnings? CORRECT ANSWER Net income-divi- dends
7. Sales - Cost of Sales - other expenses = CORRECT ANSWER Operating Income or EBiT
8. Name four accounts that are part of total assets? CORRECT ANSWER Cash, Accounts receivable, inventory,
long term assets
9. Name three accounts that are part of total liabilities? CORRECT ANSWER Bonds, accounts payable
and mortgage
10. Name four accounts that are part of current assets? CORRECT ANSWER Inventory, cash, ac- counts
receivable and short term investments.
11. Name three accounts that are only included in cash flow from financing?-
CORRECT ANSWER Common stock, dividends paid and bonds payable
12. Define the statement of cash flows? CORRECT 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.
13. When fixed assets increase what happens to cash? CORRECT ANSWER Cash will decrease
14. What is the purpose of the statement of cash flows? CORRECT ANSWER Explains the change in cash over
the course of the specified time frame.
15. Suppose the inventory turnover of a company is higher than the industry. Based on this observation, which of
MANAGEMENT OA ACTUAL EXAM
150 + QUESTIONS AND CORRECT
ANSWERS 2025/2026 GRADED A+
LATEST UPDATE !!!
, 1. Trading on the NYSE is executed without a specialist (i.e. a market maker). True or False? CORRECT
ANSWER False
2. Stocks and Bonds are two types of financial instruments. True or False? CORRECT ANSWER -
True
3. When revenue is matched with cost of sales in an Income statement it is called? CORRECT ANSWER
Matching principle
4. Basic balance sheet equation is what? CORRECT ANSWER Equity = Assets - Liabilities
5. Why is the balance sheet known as the permanent statement? CORRECT ANSWER Because the other
statements are reset at the end of the fiscal year.
6. How do you calculate the change in retained earnings? CORRECT ANSWER Net income-divi- dends
7. Sales - Cost of Sales - other expenses = CORRECT ANSWER Operating Income or EBiT
8. Name four accounts that are part of total assets? CORRECT ANSWER Cash, Accounts receivable, inventory,
long term assets
9. Name three accounts that are part of total liabilities? CORRECT ANSWER Bonds, accounts payable
and mortgage
10. Name four accounts that are part of current assets? CORRECT ANSWER Inventory, cash, ac- counts
receivable and short term investments.
11. Name three accounts that are only included in cash flow from financing?-
CORRECT ANSWER Common stock, dividends paid and bonds payable
12. Define the statement of cash flows? CORRECT 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.
13. When fixed assets increase what happens to cash? CORRECT ANSWER Cash will decrease
14. What is the purpose of the statement of cash flows? CORRECT ANSWER Explains the change in cash over
the course of the specified time frame.
15. Suppose the inventory turnover of a company is higher than the industry. Based on this observation, which of
