WGU C214 FINANCIAL MANAGEMENT QUESTIONS & ANSWERS 2026-… EXAM
P R O F E S S I O N A L P R A C T I C E M AT E R I A L S
WGU C214 Financial
Management Questions
& Answers 2026-2027 |
Multiple Choice Edition
Verified Answers Exam Ready With Rationales
222 QUESTIONS
DOCUMENT OVERVIEW
This document contains 222 multiple-choice questions with correct answers provided,
designed to enhance understanding of financial management concepts. It covers critical areas
in finance and is suitable for study, review, and certification preparation. With direct access to
answers, learners can efficiently reinforce their knowledge and ensure readiness for
examinations in the field.
CONTENTS
• Financial Instruments • Financial Statements
• Financial Ratios • Cash Flow Analysis
• Risk and Return • Investment Valuation
• Working Capital Management • Regulatory Framework
• Market Efficiency • Capital Structure
Page 1
, • Debt and Equity • Cost of Capital
• Inventory Management • Corporate Governance
E XA M Q U EST I O N S
Q1 QUESTION 1 OF 222
Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F)
CORRECT ANSWER
F
Q2 QUESTION 2 OF 222
Stocks and bonds are two types of financial instruments (T/F)
CORRECT ANSWER
T
Q3 QUESTION 3 OF 222
A basic equation for the balance sheet is:
a. Equity = Assets - Liabilities
b. Liabilities = Equity + Assets
c. Assets = Liabilities - Equity
d. Assets = Equity - Liabilities
CORRECT ANSWER
a
Q4 QUESTION 4 OF 222
Economics is a subfield of Finance (T/F)
Page 2
, CORRECT ANSWER
F
Q5 QUESTION 5 OF 222
Stocks and bonds are two types of financial instruments (T/F)
CORRECT ANSWER
T
Q6 QUESTION 6 OF 222
Primary financial markets are markets where issuers place new securities with investors. (T/F)
CORRECT ANSWER
T
Q7 QUESTION 7 OF 222
An IPO occurs on the primary market (T/F)
CORRECT ANSWER
T
Q8 QUESTION 8 OF 222
Syndicates are generally made up of investment banks and other institutional investors (T/F)
CORRECT ANSWER
T
Q9 QUESTION 9 OF 222
NASDAQ is the world's largest secondary financial market. (T/F)
Page 3
, CORRECT ANSWER
F
Q10 QUESTION 10 OF 222
Dealer markets have a physical location.
CORRECT ANSWER
F
Q11 QUESTION 11 OF 222
Stocks that are listed on dealer markets generally have a single dealer for each stock.
CORRECT ANSWER
F
Q12 QUESTION 12 OF 222
Efficient markets will often have mispriced securities
CORRECT ANSWER
F
Q13 QUESTION 13 OF 222
The fundamental concept underlying the valuation of all financial assets is:
a. The application of the PE ratio
b. Use of the Gordon Model
c. The present value of anticipated cash flows.
d. The future value of cash flows
CORRECT ANSWER
c
Page 4
P R O F E S S I O N A L P R A C T I C E M AT E R I A L S
WGU C214 Financial
Management Questions
& Answers 2026-2027 |
Multiple Choice Edition
Verified Answers Exam Ready With Rationales
222 QUESTIONS
DOCUMENT OVERVIEW
This document contains 222 multiple-choice questions with correct answers provided,
designed to enhance understanding of financial management concepts. It covers critical areas
in finance and is suitable for study, review, and certification preparation. With direct access to
answers, learners can efficiently reinforce their knowledge and ensure readiness for
examinations in the field.
CONTENTS
• Financial Instruments • Financial Statements
• Financial Ratios • Cash Flow Analysis
• Risk and Return • Investment Valuation
• Working Capital Management • Regulatory Framework
• Market Efficiency • Capital Structure
Page 1
, • Debt and Equity • Cost of Capital
• Inventory Management • Corporate Governance
E XA M Q U EST I O N S
Q1 QUESTION 1 OF 222
Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F)
CORRECT ANSWER
F
Q2 QUESTION 2 OF 222
Stocks and bonds are two types of financial instruments (T/F)
CORRECT ANSWER
T
Q3 QUESTION 3 OF 222
A basic equation for the balance sheet is:
a. Equity = Assets - Liabilities
b. Liabilities = Equity + Assets
c. Assets = Liabilities - Equity
d. Assets = Equity - Liabilities
CORRECT ANSWER
a
Q4 QUESTION 4 OF 222
Economics is a subfield of Finance (T/F)
Page 2
, CORRECT ANSWER
F
Q5 QUESTION 5 OF 222
Stocks and bonds are two types of financial instruments (T/F)
CORRECT ANSWER
T
Q6 QUESTION 6 OF 222
Primary financial markets are markets where issuers place new securities with investors. (T/F)
CORRECT ANSWER
T
Q7 QUESTION 7 OF 222
An IPO occurs on the primary market (T/F)
CORRECT ANSWER
T
Q8 QUESTION 8 OF 222
Syndicates are generally made up of investment banks and other institutional investors (T/F)
CORRECT ANSWER
T
Q9 QUESTION 9 OF 222
NASDAQ is the world's largest secondary financial market. (T/F)
Page 3
, CORRECT ANSWER
F
Q10 QUESTION 10 OF 222
Dealer markets have a physical location.
CORRECT ANSWER
F
Q11 QUESTION 11 OF 222
Stocks that are listed on dealer markets generally have a single dealer for each stock.
CORRECT ANSWER
F
Q12 QUESTION 12 OF 222
Efficient markets will often have mispriced securities
CORRECT ANSWER
F
Q13 QUESTION 13 OF 222
The fundamental concept underlying the valuation of all financial assets is:
a. The application of the PE ratio
b. Use of the Gordon Model
c. The present value of anticipated cash flows.
d. The future value of cash flows
CORRECT ANSWER
c
Page 4
