D076 - OA TEST PREP | WGU FINANCE SKILLS FOR MANAGERS
| 2026 UPDATED QUESTIONS & ANSWERS | COMPLETE TEST
PREP & SOLUTIONS WITH RATIONALES
What Are Long-Term Financial Forecasts Used For?
A. Developing Savings, Income, And Expense Strategies
B. Determining Short-Term Operating Needs
C. Cash Budgeting
D. Making Investment And Financing Decisions
ANS: D. Making Investment And Financing Decisions
Correct! Whatever Growth A Firm Anticipates Must Eventually Be Financed One Way Or
Another. Any Investment In Capital That Exceeds What The Firm Retains From Profit Generates
A Discretionary Financing Need.
What Does A Net Margin Of 7% Indicate?
A. For Every Dollar Of Revenue, 7 Cents Remain For The Debt Holders And Equity Holders After
All Other Costs Are Covered.
B. For Every Dollar Of Total Assets, 7 Cents Are Generated As Sales.
C. For Every Dollar Of Fixed Assets, 7 Cents Are Generated In Sales.
D. For Every Dollar Of Revenue, 7 Cents Remain For The Equity Holders After All Other Costs Are
Covered.
ANS: D. For Every Dollar Of Revenue, 7 Cents Remain For The Equity Holders After All Other
Costs Are Covered.
, Correct! Net Margin Tells Us The Percentage Of Sales That Will Become Net Income, Which Is
The Amount Remaining For The Equity Holders.
Which Area Of Finance Involves Deciding Which Assets To Invest In To Create Wealth In The
Future?
A. Financial Management
B. Asset Pricing
C. Financial Institutions
D. Investments
ANS: D. Investments
Correct! This Area Involves Deciding Which Assets To Invest In To Create Wealth In The Future.
What Is The Main Goal Of A Firm?
A. To Make Investment Decisions
B. To Circulate Money In The Economy
C. To Maximize Owner Wealth
D. To Make Decisions On How To Finance Projects
ANS: C. To Maximize Owner Wealth
Correct! The Main Goal Of A Firm Is To Maximize Owner Wealth, And The Financial Manager
Should Make Decisions Based On This Goal.
| 2026 UPDATED QUESTIONS & ANSWERS | COMPLETE TEST
PREP & SOLUTIONS WITH RATIONALES
What Are Long-Term Financial Forecasts Used For?
A. Developing Savings, Income, And Expense Strategies
B. Determining Short-Term Operating Needs
C. Cash Budgeting
D. Making Investment And Financing Decisions
ANS: D. Making Investment And Financing Decisions
Correct! Whatever Growth A Firm Anticipates Must Eventually Be Financed One Way Or
Another. Any Investment In Capital That Exceeds What The Firm Retains From Profit Generates
A Discretionary Financing Need.
What Does A Net Margin Of 7% Indicate?
A. For Every Dollar Of Revenue, 7 Cents Remain For The Debt Holders And Equity Holders After
All Other Costs Are Covered.
B. For Every Dollar Of Total Assets, 7 Cents Are Generated As Sales.
C. For Every Dollar Of Fixed Assets, 7 Cents Are Generated In Sales.
D. For Every Dollar Of Revenue, 7 Cents Remain For The Equity Holders After All Other Costs Are
Covered.
ANS: D. For Every Dollar Of Revenue, 7 Cents Remain For The Equity Holders After All Other
Costs Are Covered.
, Correct! Net Margin Tells Us The Percentage Of Sales That Will Become Net Income, Which Is
The Amount Remaining For The Equity Holders.
Which Area Of Finance Involves Deciding Which Assets To Invest In To Create Wealth In The
Future?
A. Financial Management
B. Asset Pricing
C. Financial Institutions
D. Investments
ANS: D. Investments
Correct! This Area Involves Deciding Which Assets To Invest In To Create Wealth In The Future.
What Is The Main Goal Of A Firm?
A. To Make Investment Decisions
B. To Circulate Money In The Economy
C. To Maximize Owner Wealth
D. To Make Decisions On How To Finance Projects
ANS: C. To Maximize Owner Wealth
Correct! The Main Goal Of A Firm Is To Maximize Owner Wealth, And The Financial Manager
Should Make Decisions Based On This Goal.
