WGU C214 FINANCIAL MANAGEMENT UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

WGU C214 FINANCIAL MANAGEMENT UPDATED
ACTUAL QUESTIONS AND CORRECT ANSWERS

Question:
1. Net Income =
Answer:
Revenues - Expenses

Question:
2. Revenues - Cost of Goods Sold (COGS)
Answer:
Gross Profit

Question:
3. Gross Profit - Operating Expenses
Answer:
EBIT

Question:
4. EBIT =
Answer:
Sales - Costs - Depreciation

Question:
5. EBIT =
Answer:
Operating Profit or Operating Income

Question:
6. EBIT - Interest Expense =
Answer:
Earnings Before Taxes

Question:
7. Earnings before Taxes - Tax Expense =
Answer:
Net Income (NI)

Question:
8. Retained Earnings
Answer:
End RE = Beg RE + NI - Dividends

Question:
9. END RE =

, Answer:
Beg RE + (Sales Revenue X Margin%) - Dividend Payout Ratio x (Sales Revenue X Margin %)

Question:
10. Assets =
Answer:
Liabilities + Owner's Equity

Question:
11. Equity =
Answer:
Assets - Liabilities

Question:
12. State of Cash Flows
Answer:
Shows the change in cash balance for a period of time

Question:
13. Cash Flow from Operating Activities (CFO)
Answer:
Net Income + Depreciation + Decrease in operating assets - increase in current assets - decrease in current
liabilities + increase in current liabilities.

Question:
14. Most common operating asset
Answer:
Accounts Receivable

Question:
15. Most common operating liability
Answer:
Accounts Payable

Question:
16. Cash Flow from Investing (CFI)
Answer:
Investing activities in Property, Plant and Equipment (PP&E)

Question:
17. CFI =
Answer:
Gross PP&E end - Gross PP&E Beg

Question:
18. CFI =