WGU D775 INTRODUCTION TO BUSINESS
FINANCE OBJECTIVE ASSESSMENT (OA)
2026 ACTUAL EXAM TEST WITH
QUESTIONS AND CORRECT ANSWERS
GRADED A+
1. The primary goal of financial management for a corporation is
to:
A) Maximize short-term profits
B) Maximize shareholder wealth
C) Minimize operational costs
D) Increase market share aggressively
Correct Answer : B
2. The time value of money principle implies that:
A) Money has the same value over time
B) A dollar today is worth more than a dollar in the future due to
earning potential
C) Inflation has no effect on value
D) Risk is irrelevant to valuation
,Correct Answer : B
3. Which financial statement reports a company's profitability over
a period?
A) Balance sheet
B) Statement of cash flows
C) Income statement
D) Statement of retained earnings
Correct Answer : C
4. A company deposits $5,000 today in an account earning 6%
annual interest compounded annually. What is the future value
after 4 years?
A) $6,312
B) $6,624
C) $5,300
D) $7,000
Correct Answer : A (5,000 × (1.06)^4 ≈ 6,312)
5. Net Present Value (NPV) is positive when:
,A) The project destroys value
B) Discounted cash inflows exceed the initial investment
C) IRR equals the cost of capital
D) Payback period is short
Correct Answer : B
6. The current ratio is a measure of:
A) Profitability
B) Long-term solvency
C) Short-term liquidity
D) Asset efficiency
Correct Answer : C
7. Systematic risk is also known as:
A) Diversifiable risk
B) Unsystematic risk
C) Market risk
D) Firm-specific risk
Correct Answer : C
, 8. According to the Capital Asset Pricing Model (CAPM), expected
return =
A) Risk-free rate + Beta × (Market return - Risk-free rate)
B) Dividend yield + Capital gains yield
C) Earnings yield
D) Cost of debt
Correct Answer : A
9. A bond selling below its face value is trading at:
A) Premium
B) Par
C) Discount
D) Zero coupon
Correct Answer : C
10. Net working capital equals:
A) Current assets minus current liabilities
B) Total assets minus total liabilities
C) Fixed assets minus long-term debt
FINANCE OBJECTIVE ASSESSMENT (OA)
2026 ACTUAL EXAM TEST WITH
QUESTIONS AND CORRECT ANSWERS
GRADED A+
1. The primary goal of financial management for a corporation is
to:
A) Maximize short-term profits
B) Maximize shareholder wealth
C) Minimize operational costs
D) Increase market share aggressively
Correct Answer : B
2. The time value of money principle implies that:
A) Money has the same value over time
B) A dollar today is worth more than a dollar in the future due to
earning potential
C) Inflation has no effect on value
D) Risk is irrelevant to valuation
,Correct Answer : B
3. Which financial statement reports a company's profitability over
a period?
A) Balance sheet
B) Statement of cash flows
C) Income statement
D) Statement of retained earnings
Correct Answer : C
4. A company deposits $5,000 today in an account earning 6%
annual interest compounded annually. What is the future value
after 4 years?
A) $6,312
B) $6,624
C) $5,300
D) $7,000
Correct Answer : A (5,000 × (1.06)^4 ≈ 6,312)
5. Net Present Value (NPV) is positive when:
,A) The project destroys value
B) Discounted cash inflows exceed the initial investment
C) IRR equals the cost of capital
D) Payback period is short
Correct Answer : B
6. The current ratio is a measure of:
A) Profitability
B) Long-term solvency
C) Short-term liquidity
D) Asset efficiency
Correct Answer : C
7. Systematic risk is also known as:
A) Diversifiable risk
B) Unsystematic risk
C) Market risk
D) Firm-specific risk
Correct Answer : C
, 8. According to the Capital Asset Pricing Model (CAPM), expected
return =
A) Risk-free rate + Beta × (Market return - Risk-free rate)
B) Dividend yield + Capital gains yield
C) Earnings yield
D) Cost of debt
Correct Answer : A
9. A bond selling below its face value is trading at:
A) Premium
B) Par
C) Discount
D) Zero coupon
Correct Answer : C
10. Net working capital equals:
A) Current assets minus current liabilities
B) Total assets minus total liabilities
C) Fixed assets minus long-term debt
