WGU C214 OA FINANCIAL MANAGEMENT
RETAKE EXAMINATION TEST 2026
◉ What does the degree of financial leverage indicate? Answer: The
reliance on debt
◉ If a company has a high degree of financial leverage, what does
that tell us about the firms risk profile? Answer: Financial leverage
also means that more financing is done through debt, not equity.
Higher profits to shareholders.
◉ What is the cash cycle? Answer: The amount of time to regenerate
cash.
◉ Why is float important to understand? Answer: To time cash
expenditures
◉ What should a company do to manage its working capital?
Answer: Collect quickly and pay slowly
◉ Name what characterizes increased collection float? Answer:
Increased float indicates slower processing time.
, ◉ In regards to Accounts Payable Balances, what is a good policy?
Answer: Paying off A/P on the last day due is a good policy.
◉ What would be a good source of information to determine
replacement cost? Answer: Building Appraisal
◉ Dodd-Frank Act regulates which segment of the U.S economy?
Answer: Banking industry
◉ What is the regulatory body that overseas the systematic risk in
banking? Answer: Financial stability oversight council
◉ The SEC securities and Exchange Commission requires companies
to do the following three things: Answer: Register all public
offerings, regulate stock sales and ensure transparency through
uniform reporting.
◉ What does the Sarbanes-Oxley Act require companies to do?
Answer: Have internal control audits, senior management
responsible for signing off on statements and places restrictions on
auditors.
◉ Financial Industry Regulatory Authority (FINRA) does the
following? Answer: Licenses stock brokers and audits brokerage
firms.
RETAKE EXAMINATION TEST 2026
◉ What does the degree of financial leverage indicate? Answer: The
reliance on debt
◉ If a company has a high degree of financial leverage, what does
that tell us about the firms risk profile? Answer: Financial leverage
also means that more financing is done through debt, not equity.
Higher profits to shareholders.
◉ What is the cash cycle? Answer: The amount of time to regenerate
cash.
◉ Why is float important to understand? Answer: To time cash
expenditures
◉ What should a company do to manage its working capital?
Answer: Collect quickly and pay slowly
◉ Name what characterizes increased collection float? Answer:
Increased float indicates slower processing time.
, ◉ In regards to Accounts Payable Balances, what is a good policy?
Answer: Paying off A/P on the last day due is a good policy.
◉ What would be a good source of information to determine
replacement cost? Answer: Building Appraisal
◉ Dodd-Frank Act regulates which segment of the U.S economy?
Answer: Banking industry
◉ What is the regulatory body that overseas the systematic risk in
banking? Answer: Financial stability oversight council
◉ The SEC securities and Exchange Commission requires companies
to do the following three things: Answer: Register all public
offerings, regulate stock sales and ensure transparency through
uniform reporting.
◉ What does the Sarbanes-Oxley Act require companies to do?
Answer: Have internal control audits, senior management
responsible for signing off on statements and places restrictions on
auditors.
◉ Financial Industry Regulatory Authority (FINRA) does the
following? Answer: Licenses stock brokers and audits brokerage
firms.
