WGU D076 Objective Assessment Finance Skills For
Managers Actual Exam Newest 2025/2026 Complete
200 Questions And Correct Detailed Answers
(Verified Answers) |Already Graded A+||Brand New
Version!!
W&H Company wants to create a cash budget to better manage its cash flows. The financial
manager knows that the firm's labor costs and materials costs are too high for the level of sales
each month. The firm also needs to keep better track of its cash flows to assess its need for
additional financing through short-term loans.
W&H Inc.'s labor costs each month are an example of which item in a cash budget? -:
answers :-Cash disbursement - This is a cash disbursement for the firm because it represents
cash going out during the month to pay employees.
W&H Company wants to create a cash budget to better manage its cash flows. The financial
manager knows that the firm's labor costs and materials costs are too high for the level of sales
each month. The firm also needs to keep better track of its cash flows to assess its need for
additional financing through short-term loans.
After W&H Inc. has developed a cash budget, what should the company do in the following
months? -: answers :-It should monitor its actual cash flows and then revise the cash budget
if needed. -
W&H Company wants to create a cash budget to better manage its cash flows. The financial
manager knows that the firm's labor costs and materials costs are too high for the level of sales
each month. The firm also needs to keep better track of its cash flows to assess its need for
additional financing through short-term loans.
,Why would creating a cash budget be useful for W&H if the firm needs a loan from the bank or
another short-term lender? -: answers :-Cash budgets increase the lender's trust in a firm by
demonstrating the firm's ability to make profits and repay loans. - Cash budgets are detailed
plans that show creditors that a firm will have enough cash from month to month to support its
operations while staying within acceptable borrowing limits. A good cash budget allows
creditors to feel secure in lending money to the firm.
How do the benefits of knowing the cash position for each period differ between businesses
and individuals? -: answers :-Knowing the cash position allows businesses to recognize when
short-term loans are needed, while it allows individuals to analyze progress toward their
personal financial goals.
What is the difference between tracking and monitoring cash flows? -: answers :-Monitoring
involves using your tracking record to evaluate cash flows against your target, identify patterns
and changes in cash flows, and gauge when correction is needed. - By accessing cash flow
records and knowing the remaining balance in the budget throughout the month and year, you
will be able to monitor your budget in a way that will help you reach your financial goals.
What is discretionary financing needed (DFN)? -: answers :-The additional financing needed
given a firm's expected future growth -
You are a financial manager of a company. The marketing department has informed you that the
projected sales growth for the upcoming year is 10%. As you conduct financial forecasting, you
keep the long-term liabilities the same amount as the previous year and will discuss this
account with the other managers later. What type of account is long-term liabilities? -:
answers :-Discretionary account - Discretionary accounts do not vary automatically with sales
but are left to the discretion of management. In this scenario, you kept the long-term liabilities
account the same.
What does the discretionary financing needed (DFN) tell us? -: answers :-The total amount of
funding that management will need to obtain through discretionary financing sources - DFN is
the difference between the projected total assets and the projected total liabilities plus owners'
, equity. Any discrepancy between the sources and uses of finance is extra financing that
management must obtain.
Company ABC would like to continue to grow, but in order to maintain control of all decisions
and ownership, it wants to avoid issuing new stock. Which calculation will show the company's
leadership the fastest that ABC can grow? -: answers :-Sustainable growth rate -Sustainable
growth rate is defined as the rate at which a firm can grow without issuing new equity. It implies
that the firm's growth comes from the return on equity less any dividends.
What is the major purpose of financial forecasting? -: answers :-To inform a company how
business decisions will impact future growth -Financial forecasting helps decision makers
understand how actions taken today can impact the firm's future performance.
What is the name for a forecast of short-term events that helps a company understand if it has
sufficient cash? -: answers :-Cash budget - A cash budget is a short-term forecast of future
events that helps a company understand whether it has sufficient cash for regular operations.
What is the purpose of a monthly cash budget? -: answers :-To control cash inflows and
outflows so you can balance income with expenditures and savings - Controlling cash inflows
and outflows allows you to use your money in the most effective way possible.
In which situation would a firm need to borrow cash? -: answers :-When the beginning cash
balance plus the net cash is less than the minimum cash balance required for the month - This
indicates to a firm that additional financing will be needed during the period to operate
effectively.
How can you use the envelope method of budgeting to monitor cash flows? -: answers :-Put
the amount of money budgeted for each category of your expenses into labeled envelopes and
then spend the money in each envelope on expenses in that category.
Managers Actual Exam Newest 2025/2026 Complete
200 Questions And Correct Detailed Answers
(Verified Answers) |Already Graded A+||Brand New
Version!!
W&H Company wants to create a cash budget to better manage its cash flows. The financial
manager knows that the firm's labor costs and materials costs are too high for the level of sales
each month. The firm also needs to keep better track of its cash flows to assess its need for
additional financing through short-term loans.
W&H Inc.'s labor costs each month are an example of which item in a cash budget? -:
answers :-Cash disbursement - This is a cash disbursement for the firm because it represents
cash going out during the month to pay employees.
W&H Company wants to create a cash budget to better manage its cash flows. The financial
manager knows that the firm's labor costs and materials costs are too high for the level of sales
each month. The firm also needs to keep better track of its cash flows to assess its need for
additional financing through short-term loans.
After W&H Inc. has developed a cash budget, what should the company do in the following
months? -: answers :-It should monitor its actual cash flows and then revise the cash budget
if needed. -
W&H Company wants to create a cash budget to better manage its cash flows. The financial
manager knows that the firm's labor costs and materials costs are too high for the level of sales
each month. The firm also needs to keep better track of its cash flows to assess its need for
additional financing through short-term loans.
,Why would creating a cash budget be useful for W&H if the firm needs a loan from the bank or
another short-term lender? -: answers :-Cash budgets increase the lender's trust in a firm by
demonstrating the firm's ability to make profits and repay loans. - Cash budgets are detailed
plans that show creditors that a firm will have enough cash from month to month to support its
operations while staying within acceptable borrowing limits. A good cash budget allows
creditors to feel secure in lending money to the firm.
How do the benefits of knowing the cash position for each period differ between businesses
and individuals? -: answers :-Knowing the cash position allows businesses to recognize when
short-term loans are needed, while it allows individuals to analyze progress toward their
personal financial goals.
What is the difference between tracking and monitoring cash flows? -: answers :-Monitoring
involves using your tracking record to evaluate cash flows against your target, identify patterns
and changes in cash flows, and gauge when correction is needed. - By accessing cash flow
records and knowing the remaining balance in the budget throughout the month and year, you
will be able to monitor your budget in a way that will help you reach your financial goals.
What is discretionary financing needed (DFN)? -: answers :-The additional financing needed
given a firm's expected future growth -
You are a financial manager of a company. The marketing department has informed you that the
projected sales growth for the upcoming year is 10%. As you conduct financial forecasting, you
keep the long-term liabilities the same amount as the previous year and will discuss this
account with the other managers later. What type of account is long-term liabilities? -:
answers :-Discretionary account - Discretionary accounts do not vary automatically with sales
but are left to the discretion of management. In this scenario, you kept the long-term liabilities
account the same.
What does the discretionary financing needed (DFN) tell us? -: answers :-The total amount of
funding that management will need to obtain through discretionary financing sources - DFN is
the difference between the projected total assets and the projected total liabilities plus owners'
, equity. Any discrepancy between the sources and uses of finance is extra financing that
management must obtain.
Company ABC would like to continue to grow, but in order to maintain control of all decisions
and ownership, it wants to avoid issuing new stock. Which calculation will show the company's
leadership the fastest that ABC can grow? -: answers :-Sustainable growth rate -Sustainable
growth rate is defined as the rate at which a firm can grow without issuing new equity. It implies
that the firm's growth comes from the return on equity less any dividends.
What is the major purpose of financial forecasting? -: answers :-To inform a company how
business decisions will impact future growth -Financial forecasting helps decision makers
understand how actions taken today can impact the firm's future performance.
What is the name for a forecast of short-term events that helps a company understand if it has
sufficient cash? -: answers :-Cash budget - A cash budget is a short-term forecast of future
events that helps a company understand whether it has sufficient cash for regular operations.
What is the purpose of a monthly cash budget? -: answers :-To control cash inflows and
outflows so you can balance income with expenditures and savings - Controlling cash inflows
and outflows allows you to use your money in the most effective way possible.
In which situation would a firm need to borrow cash? -: answers :-When the beginning cash
balance plus the net cash is less than the minimum cash balance required for the month - This
indicates to a firm that additional financing will be needed during the period to operate
effectively.
How can you use the envelope method of budgeting to monitor cash flows? -: answers :-Put
the amount of money budgeted for each category of your expenses into labeled envelopes and
then spend the money in each envelope on expenses in that category.
