D076 PRE-ASSESSMENT EXAM (2026/2027) | ACTUAL COMPLETE REAL VERIFIED
EXAM QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+ | GUARANTEED SUCCESS!!
WGU D076: Finance Skills for Managers - Pre-Assessment Examination | Core Domains: Financial
Statements & Analysis (Income Statement, Balance Sheet, Cash Flow), Time Value of Money & Financial
Mathematics, Capital Budgeting & Investment Decisions, Risk & Return Principles, Working Capital
Management, Cost of Capital & Financing, and Ethical & Global Considerations in Finance | Business
Finance Competency Focus | Pre-Course Diagnostic Exam Format
Exam Structure
The D076 Pre-Assessment Exam for the 2026/2027 academic cycle is a 75-question, multiple-choice
question (MCQ) examination.
Introduction
This D076 Pre-Assessment Exam guide for the 2026/2027 cycle provides a diagnostic tool for WGU
students to evaluate their foundational knowledge of managerial finance before beginning the course. The
content tests comprehension of key financial concepts, calculations, and principles necessary for making
informed business decisions, identifying areas of strength and opportunities for further study.
Answer Format
All correct answers and financial calculations must be presented in bold and green, followed by detailed
rationales that demonstrate formula applications (e.g., NPV, IRR, ratios), interpret financial statement
data, explain time value of money concepts, and apply financial decision-making frameworks.
Questions (75 Total)
1. Which financial statement shows a company’s revenues and expenses over a specific period?
A. Balance Sheet
B. Income Statement
C. Statement of Cash Flows
D. Statement of Retained Earnings
Rationale: The Income Statement (or Profit & Loss Statement) reports revenues, expenses, and net
income over a period (e.g., quarter or year). The Balance Sheet shows assets, liabilities, and equity at a
point in time; Cash Flow tracks cash inflows/outflows.
2. What does a current ratio of 2.0 indicate?
A. The company has twice as many long-term assets as liabilities
B. The company has $2 in current assets for every $1 in current liabilities
C. The company is insolvent
,D. The company has no debt
Rationale: Current Ratio = Current Assets / Current Liabilities. A ratio of 2.0 means the firm can
cover its short-term obligations twice over, indicating strong liquidity. However, excessively high ratios
may suggest inefficient asset use.
3. If you invest $1,000 today at 5% annual interest compounded annually, what will it be worth in 3
years?
A. $1,100
B. $1,157.63
C. $1,200
D. $1,050
Rationale: Use FV = PV × (1 + r)^n = 1000 × (1.05)^3 = 1000 × 1.157625 = $1,157.63. This
demonstrates the time value of money—money grows when invested.
4. Which capital budgeting method considers the time value of money and provides a percentage return?
A. Payback Period
B. Internal Rate of Return (IRR)
C. Accounting Rate of Return
D. Net Present Value (NPV)
Rationale: IRR is the discount rate that makes NPV = 0. It expresses return as a percentage,
facilitating comparison with cost of capital. NPV gives dollar value; Payback ignores TVM; ARR uses
accounting profit, not cash flow.
5. A company’s net income is $100,000, and it has 50,000 shares outstanding. What is the earnings per
share (EPS)?
A. $0.50
B. $2.00
C. $5.00
D. $10.00
Rationale: EPS = Net Income / Shares Outstanding = $100,,000 = $2.00 per share. EPS is a
key metric for profitability and stock valuation.
6. Which component is part of the Weighted Average Cost of Capital (WACC)?
, A. Dividend payout ratio
B. Cost of debt and cost of equity
C. Inventory turnover
D. Operating margin
Rationale: WACC = (E/V × Re) + (D/V × Rd × (1 – Tc)), where E = equity, D = debt, V = total value, Re
= cost of equity, Rd = cost of debt, Tc = tax rate. It reflects the firm’s blended cost of financing.
7. What is the primary goal of working capital management?
A. Maximize long-term debt
B. Ensure sufficient liquidity to meet short-term obligations while optimizing returns
C. Eliminate all inventory
D. Minimize shareholder equity
Rationale: Working capital management balances current assets (cash, inventory, receivables) and
current liabilities to maintain operational efficiency and avoid insolvency without tying up excess
capital.
8. A project has an NPV of $50,000. Should the company accept it?
A. No, because it’s too small
B. Yes, because it adds value to the firm
C. Only if IRR is negative
D. No, unless payback is under 1 year
Rationale: NPV > 0 indicates the project’s return exceeds the cost of capital and increases shareholder
wealth. Accept all positive NPV projects (assuming capital availability).
9. Which risk is reduced through diversification?
A. Systematic risk
B. Unsystematic risk
C. Market risk
D. Inflation risk
EXAM QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+ | GUARANTEED SUCCESS!!
WGU D076: Finance Skills for Managers - Pre-Assessment Examination | Core Domains: Financial
Statements & Analysis (Income Statement, Balance Sheet, Cash Flow), Time Value of Money & Financial
Mathematics, Capital Budgeting & Investment Decisions, Risk & Return Principles, Working Capital
Management, Cost of Capital & Financing, and Ethical & Global Considerations in Finance | Business
Finance Competency Focus | Pre-Course Diagnostic Exam Format
Exam Structure
The D076 Pre-Assessment Exam for the 2026/2027 academic cycle is a 75-question, multiple-choice
question (MCQ) examination.
Introduction
This D076 Pre-Assessment Exam guide for the 2026/2027 cycle provides a diagnostic tool for WGU
students to evaluate their foundational knowledge of managerial finance before beginning the course. The
content tests comprehension of key financial concepts, calculations, and principles necessary for making
informed business decisions, identifying areas of strength and opportunities for further study.
Answer Format
All correct answers and financial calculations must be presented in bold and green, followed by detailed
rationales that demonstrate formula applications (e.g., NPV, IRR, ratios), interpret financial statement
data, explain time value of money concepts, and apply financial decision-making frameworks.
Questions (75 Total)
1. Which financial statement shows a company’s revenues and expenses over a specific period?
A. Balance Sheet
B. Income Statement
C. Statement of Cash Flows
D. Statement of Retained Earnings
Rationale: The Income Statement (or Profit & Loss Statement) reports revenues, expenses, and net
income over a period (e.g., quarter or year). The Balance Sheet shows assets, liabilities, and equity at a
point in time; Cash Flow tracks cash inflows/outflows.
2. What does a current ratio of 2.0 indicate?
A. The company has twice as many long-term assets as liabilities
B. The company has $2 in current assets for every $1 in current liabilities
C. The company is insolvent
,D. The company has no debt
Rationale: Current Ratio = Current Assets / Current Liabilities. A ratio of 2.0 means the firm can
cover its short-term obligations twice over, indicating strong liquidity. However, excessively high ratios
may suggest inefficient asset use.
3. If you invest $1,000 today at 5% annual interest compounded annually, what will it be worth in 3
years?
A. $1,100
B. $1,157.63
C. $1,200
D. $1,050
Rationale: Use FV = PV × (1 + r)^n = 1000 × (1.05)^3 = 1000 × 1.157625 = $1,157.63. This
demonstrates the time value of money—money grows when invested.
4. Which capital budgeting method considers the time value of money and provides a percentage return?
A. Payback Period
B. Internal Rate of Return (IRR)
C. Accounting Rate of Return
D. Net Present Value (NPV)
Rationale: IRR is the discount rate that makes NPV = 0. It expresses return as a percentage,
facilitating comparison with cost of capital. NPV gives dollar value; Payback ignores TVM; ARR uses
accounting profit, not cash flow.
5. A company’s net income is $100,000, and it has 50,000 shares outstanding. What is the earnings per
share (EPS)?
A. $0.50
B. $2.00
C. $5.00
D. $10.00
Rationale: EPS = Net Income / Shares Outstanding = $100,,000 = $2.00 per share. EPS is a
key metric for profitability and stock valuation.
6. Which component is part of the Weighted Average Cost of Capital (WACC)?
, A. Dividend payout ratio
B. Cost of debt and cost of equity
C. Inventory turnover
D. Operating margin
Rationale: WACC = (E/V × Re) + (D/V × Rd × (1 – Tc)), where E = equity, D = debt, V = total value, Re
= cost of equity, Rd = cost of debt, Tc = tax rate. It reflects the firm’s blended cost of financing.
7. What is the primary goal of working capital management?
A. Maximize long-term debt
B. Ensure sufficient liquidity to meet short-term obligations while optimizing returns
C. Eliminate all inventory
D. Minimize shareholder equity
Rationale: Working capital management balances current assets (cash, inventory, receivables) and
current liabilities to maintain operational efficiency and avoid insolvency without tying up excess
capital.
8. A project has an NPV of $50,000. Should the company accept it?
A. No, because it’s too small
B. Yes, because it adds value to the firm
C. Only if IRR is negative
D. No, unless payback is under 1 year
Rationale: NPV > 0 indicates the project’s return exceeds the cost of capital and increases shareholder
wealth. Accept all positive NPV projects (assuming capital availability).
9. Which risk is reduced through diversification?
A. Systematic risk
B. Unsystematic risk
C. Market risk
D. Inflation risk
