Master WGU’s Financial Management course with this comprehensive study guide. Covers budgeting, capital structure, financial analysis, valuation, risk management, and exam-focused practice material designed to help you pass WGU assessments with confidence

WGU Financial Management - C214
with correct answers 2025



Avbondvisvsimilarvtovavloanv(TvorvF)v-vcorrect-answersv-True



Avbondvisvavdebtvinstrumentvissuedvbyvcorporationsvorvgovernments.v-vcorrect-answersv-True



Avsyndicatevisvavgroupvofvinvestorsvthatvisvtemporarilyvformedvtovhandlevthevissuancevofvnewvbond
s.v-vcorrect-answersv-True



Ifvthevpricevofvavparticularvstockvbeginsvtovheavilyvfluctuate,vthenvthevspecialistvwillv__________vth
evspread.v-vcorrect-answersv-Increasevthevspread



Avstockvisvavsharevofv______________vinvavparticularvcompany.v-vcorrect-answersv-Ownership



ThevNewvYorkvStockvExchangevisvanvauctionvmarket.v-vcorrect-answersv-True



Somevhighvfrequencyvtradersvprovidevliquidityvtovthevrestvofvthevmarket.v-vcorrect-answersv-True

,Ifvprovidingvliquidityvbecomesvmorevrisky,vthenvdealersvwillv__________vthevspread.v-vcorrect-
answersv-Increasevthevspread



Withoutvfinancialvmarkets,vexchangevwouldvbecomevmorevcostly.v-vcorrect-answersv-True



NYSEvdailyvtradingvvolumevhasvincreasedvovervthevlastv50vyears.v-vcorrect-answersv-True



Whichvtypevofvbondvplacementv-vcompetitivevsalevorvnegotiatedvsalev-
vrequiresvavmorevthoroughvinterviewvprocess?v-vcorrect-answersv-negotiatedvsale




Secondaryvmarketsvarevwherevsecuritiesvarevinitiallyvofferedvtovthevpublic.v-vcorrect-answersv-False



AnvIPOvisvwherevavcompanyvgoesvpublicvorvsellsvsharesvtovthevpublicvforvthevfirstvtime.v-vcorrect-
answersv-True



TradingvonvthevNYSEvisvexecutedvwithoutvavspecialistv(i.e.,vavmarketvmaker).v-vcorrect-answersv-
False



Stocksvandvbondsvarevtwovtypesvofvfinancialvinstruments.v-vcorrect-answersv-True



Thevmatchingvprinciplevinvaccrualvaccountingvrequiresvthat_________.v-vcorrect-answersv-
revenuesvbevrecognizedvwhenvthevearningsvprocessvisvcompletevandvmatchesvexpensesvtovrevenu
esvrecognized



Avhigh-
qualityvcustomervjustvpurchasedv$500,000vworthvofvproductvfromvyourvcompany.vThevcontractvcall
svforvimmediatevdeliveryvofvthevproductvwithvavcashvpaymentvofv$300,000vtodayvandv$200,000vtov
bevpaidvinv60vdays.vThevexpensevassociatedvwithvthevproductvisv$300,000,vofvwhichv$100,000vhasvn

, otvbeenvpaidvtovyourvsupplier.vUndervanvaccrualvbasedvaccountingvsystem,vyouvwillvmostvlikelyvrep
ortvwhichvofvthese?v-vcorrect-answersv-Revenuesvofv300,000vandvexpensesvofv200,000



Accountsvpayablevrepresentsvmoneyvavfirmvowesvto:v-vcorrect-answersv-
Suppliersvduevtovpurchasesvmadevonvcredit



ThevbasicvbalancevsheetvequationvstatesvthatvAssetsvarevequalvtovLiabilitiesvplusvOwner'svequity.vT
hisvisvbecausevallvassetsvare:v-vcorrect-answersv-
Financedveithervbyvothervpeople'svmoneyvorvbyvthevfirm'svowners'vmoney.



(True/False)vIfvyouvwantvtovunderstandvavfirm'svoperations,vcashvaccountingvisvavsuperiorvtool.v-
vcorrect-answersv-False




Thevmatchingvprinciplevinvaccrualvaccountingvrequiresvthat:v-vcorrect-answersv-
Revenuesvarevmatchedvtovthevexpensesvincurredvtovgeneratevthevrevenues



Whichvofvthevfollowingvwouldvnotvbevconsideredvanvoperatingvexpense?v-vcorrect-answersv-
InterestvExpense



Thevevolutionvofvretainedvearningsvisvbestvdescribedvby:v-vcorrect-answersv-
Changevinvretainedvearningsv=vnetvincomev-vdividends



NetvFixedvAssetsvrepresents:v-vcorrect-answersv-
Thevoriginalvcostvofvthevfirm'svassetsvheldvforvusevlessvaccumulatedvdepreciation



Avfirmvcanvusevretainedvearningsvtovpayvbillsvifvneeded.v-vcorrect-answersv-False



(True/False)vThevincomevstatementvrepresentsvavsnapshotvofvthevfirmvatvonevpointvinvtime.v-
vcorrect-answersv-False