WGU D076 Unit 4 Question and
answers verified to pass 2025/2026
Trend Analysis - correct answer ✔Comparing a firm's ratios across time.
Cross Sectional Analysis - correct answer ✔Comparing a firm's financial ratios to other firms' ratios or
industry averages.
Benchmarking - correct answer ✔The process of completing a financial analysis to compare a firm's
financial performance to that of other similar firms.
Seasonal Firms - correct answer ✔Firms whose performance varies according to the season.
Liquidity Ratios - correct answer ✔A category of ratios that measure a firm's ability to meet short-term
obligations.
Activity Ratios - correct answer ✔A category of ratios that measure how well a company uses its assets
to generate sales or cash, showing the firm's operational efficiency and profitability.
Leverage Ratios - correct answer ✔A category of ratios that consider how a firm is financed.
Profitability Ratios - correct answer ✔A category of ratios that are commonly used to directly judge
how well management is doing as they strive to maximize owner wealth.
Market Ratios - correct answer ✔A category of ratios that are used to evaluate the current share price
of a public firm's stock.
Current Ratio - correct answer ✔A liquidity ratio found by current assets divided by current liabilities.
answers verified to pass 2025/2026
Trend Analysis - correct answer ✔Comparing a firm's ratios across time.
Cross Sectional Analysis - correct answer ✔Comparing a firm's financial ratios to other firms' ratios or
industry averages.
Benchmarking - correct answer ✔The process of completing a financial analysis to compare a firm's
financial performance to that of other similar firms.
Seasonal Firms - correct answer ✔Firms whose performance varies according to the season.
Liquidity Ratios - correct answer ✔A category of ratios that measure a firm's ability to meet short-term
obligations.
Activity Ratios - correct answer ✔A category of ratios that measure how well a company uses its assets
to generate sales or cash, showing the firm's operational efficiency and profitability.
Leverage Ratios - correct answer ✔A category of ratios that consider how a firm is financed.
Profitability Ratios - correct answer ✔A category of ratios that are commonly used to directly judge
how well management is doing as they strive to maximize owner wealth.
Market Ratios - correct answer ✔A category of ratios that are used to evaluate the current share price
of a public firm's stock.
Current Ratio - correct answer ✔A liquidity ratio found by current assets divided by current liabilities.
