5/12/25, 5:53 AM WGU C214|WGU C214 OA FINANCIAL MANAGEMENT 200 + |2 DIFFERENT VERSIONS|QUESTIONS AND CORRECT DETAIL…
WGU C214|WGU C214 OA FINANCIAL MANAGEMENT 200
+ |2 DIFFERENT VERSIONS|QUESTIONS AND CORRECT
DETAILED ANSWERS UPDATE ALREADY A GRADED
Trading on the NYSE is F
executed without a specialist
(i.e. a market maker). (T/F)
Stocks and bonds are two T
types of financial
instruments (T/F)
If a company has a high d
degree of financial leverage,
what does that tell us
about the firm's risk
profile?
a. Low Risk
b. Appropriate Risk
c. Higher ability to pay debt
d. Higher profits to
shareholders
What is the cash cycle? d
a. The speed of
collecting cash from
customers
b. The amount of cash kept in
banks
c. The comparison of debt to
cash
d. The amount of time to
regenerate cash
… 1/73
,5/12/25, 5:53 AM WGU C214|WGU C214 OA FINANCIAL MANAGEMENT 200 + |2 DIFFERENT VERSIONS|QUESTIONS AND CORRECT DETAIL…
Why is float important to d
understand?
a. To know how to keep
the company profitable
b. To know why the company
needs cash
c. To determine when to buy
fixed assets
d. To time cash expenditures
e. None of the above
What should a company do a
to manage its working
capital?
a. Collect quickly and pay
slowly
b. Keep a large cash balance
c. Maximize the use of
long term
investment
d. Depreciate assets more
slowly
What would be a source of a
information to determine
Replacement Cost?
a. Building Appraisal
b. Accumulated Depreciation
Expense
c. Stock price
d. Statement of Cash Flows
What does the Sarbanes- d
Oxley Act require
companies to do?
a. Have a board of directors
b. Register all foreign sales
c. Make estimated tax
payments
d. Have internal control audits
… 2/73
,5/12/25, 5:53 AM WGU C214|WGU C214 OA FINANCIAL MANAGEMENT 200 + |2 DIFFERENT VERSIONS|QUESTIONS AND CORRECT DETAIL…
FINRA (Financial Industry d
Regulatory Authority) does
the following: (pick one)
a. No foreign bribery by
corporations
b. Regulates bond prices
c. Establishes Credit Unions
d. Prosecutes naughty stock
brokers
e. Regulates Hedge Funds
If a product is made 100% b
domestically, what can
affect its domestic
market?
a. International exchange rates
b. International competition
c. Product tariffs
d. International political
regulations
If a company makes its d
product in a foreign country
where labor costs are much
lower, what happens?
a. Profits and domestic
employment goes up
b. Costs go up and domestic
employment goes down
c. Costs stay the same
and domestic
employment
increases
d. Profits go up and domestic
employment decreases.
If the value of a dollar b
increases, the price of
imports:
a. Increases
b. Decreases
… 3/73
, 5/12/25, 5:53 AM WGU C214|WGU C214 OA FINANCIAL MANAGEMENT 200 + |2 DIFFERENT VERSIONS|QUESTIONS AND CORRECT DETAIL…
c. Stays the same
d. Fluctuates
Why would a farmer buy a b
hedge when he signs a
contract to sell produce
overseas?
a. To avoid tariffs
b. To reduce currency risk
c. To increase profits
d. To avoid competition
A basic equation for the a
balance sheet is:
a. Equity = Assets - Liabilities
b. Liabilities = Equity + Assets
c. Assets = Liabilities - Equity
d. Assets
= Equity - Liabilities
Why is the Balance b
Sheet known as a
permanent
statement?
a. Because the statement is
sent to the SEC.
b. Because the other
statements are reset at the
end of the fiscal year
c. Because it is printed out and
archived
d. Because it persists in the
minds of the
shareholders.
How do you calculate d
the change in
Retained Earnings?
a. Ending Retained
Earnings - Change in Cash
b. EBIT divided by Total Assets
… 4/73
WGU C214|WGU C214 OA FINANCIAL MANAGEMENT 200
+ |2 DIFFERENT VERSIONS|QUESTIONS AND CORRECT
DETAILED ANSWERS UPDATE ALREADY A GRADED
Trading on the NYSE is F
executed without a specialist
(i.e. a market maker). (T/F)
Stocks and bonds are two T
types of financial
instruments (T/F)
If a company has a high d
degree of financial leverage,
what does that tell us
about the firm's risk
profile?
a. Low Risk
b. Appropriate Risk
c. Higher ability to pay debt
d. Higher profits to
shareholders
What is the cash cycle? d
a. The speed of
collecting cash from
customers
b. The amount of cash kept in
banks
c. The comparison of debt to
cash
d. The amount of time to
regenerate cash
… 1/73
,5/12/25, 5:53 AM WGU C214|WGU C214 OA FINANCIAL MANAGEMENT 200 + |2 DIFFERENT VERSIONS|QUESTIONS AND CORRECT DETAIL…
Why is float important to d
understand?
a. To know how to keep
the company profitable
b. To know why the company
needs cash
c. To determine when to buy
fixed assets
d. To time cash expenditures
e. None of the above
What should a company do a
to manage its working
capital?
a. Collect quickly and pay
slowly
b. Keep a large cash balance
c. Maximize the use of
long term
investment
d. Depreciate assets more
slowly
What would be a source of a
information to determine
Replacement Cost?
a. Building Appraisal
b. Accumulated Depreciation
Expense
c. Stock price
d. Statement of Cash Flows
What does the Sarbanes- d
Oxley Act require
companies to do?
a. Have a board of directors
b. Register all foreign sales
c. Make estimated tax
payments
d. Have internal control audits
… 2/73
,5/12/25, 5:53 AM WGU C214|WGU C214 OA FINANCIAL MANAGEMENT 200 + |2 DIFFERENT VERSIONS|QUESTIONS AND CORRECT DETAIL…
FINRA (Financial Industry d
Regulatory Authority) does
the following: (pick one)
a. No foreign bribery by
corporations
b. Regulates bond prices
c. Establishes Credit Unions
d. Prosecutes naughty stock
brokers
e. Regulates Hedge Funds
If a product is made 100% b
domestically, what can
affect its domestic
market?
a. International exchange rates
b. International competition
c. Product tariffs
d. International political
regulations
If a company makes its d
product in a foreign country
where labor costs are much
lower, what happens?
a. Profits and domestic
employment goes up
b. Costs go up and domestic
employment goes down
c. Costs stay the same
and domestic
employment
increases
d. Profits go up and domestic
employment decreases.
If the value of a dollar b
increases, the price of
imports:
a. Increases
b. Decreases
… 3/73
, 5/12/25, 5:53 AM WGU C214|WGU C214 OA FINANCIAL MANAGEMENT 200 + |2 DIFFERENT VERSIONS|QUESTIONS AND CORRECT DETAIL…
c. Stays the same
d. Fluctuates
Why would a farmer buy a b
hedge when he signs a
contract to sell produce
overseas?
a. To avoid tariffs
b. To reduce currency risk
c. To increase profits
d. To avoid competition
A basic equation for the a
balance sheet is:
a. Equity = Assets - Liabilities
b. Liabilities = Equity + Assets
c. Assets = Liabilities - Equity
d. Assets
= Equity - Liabilities
Why is the Balance b
Sheet known as a
permanent
statement?
a. Because the statement is
sent to the SEC.
b. Because the other
statements are reset at the
end of the fiscal year
c. Because it is printed out and
archived
d. Because it persists in the
minds of the
shareholders.
How do you calculate d
the change in
Retained Earnings?
a. Ending Retained
Earnings - Change in Cash
b. EBIT divided by Total Assets
… 4/73
