WGU C214 Financial Management OA
Exam EXAM STUDY GUIDE 2026/2027
ACCURATE QUESTIONS WITH CORRECT
DETAILED SOLUTIONS || 100%
GUARANTEED PASS NEWEST VERSION
📘 Description: This comprehensive revision set covers all key objective assessment
(OA) topics for WGU C214 Financial Management, including financial statements,
ratio analysis, time value of money, capital budgeting, risk & return, cost of
capital, capital structure, dividends, working capital management, international
finance, and ethics. Each question is followed by the correct answer marked with ✅.
🔑 Keywords: WGU C214, Financial Management, OA Exam, MCQ Revision, Financial
Statements, Ratio Analysis, TVM, NPV, IRR, WACC, CAPM, Capital Budgeting, Risk and
Return, Capital Structure, Dividends, Working Capital, International Finance, 2026.
📊 SECTION 1: FINANCIAL STATEMENTS & ANALYSIS (Q1–
Q15)
Q1. Which financial statement shows a company's financial position at a specific
point in time?
A) Income Statement
B) Balance Sheet ✅
C) Statement of Cash Flows
D) Statement of Retained Earnings
,Q2. Which financial statement reports revenues and expenses over a period?
A) Balance Sheet
B) Income Statement ✅
C) Statement of Cash Flows
D) Statement of Equity
Q3. The accounting equation is:
A) Assets = Liabilities − Equity
B) Assets = Liabilities + Equity ✅
C) Equity = Assets + Liabilities
D) Liabilities = Assets + Equity
Q4. Which of the following is a current asset?
A) Land
B) Equipment
C) Inventory ✅
D) Bonds Payable
Q5. Which of the following is a long-term liability?
A) Accounts Payable
B) Accrued Wages
C) Mortgage Payable ✅
D) Short-term Notes
Q6. Net Working Capital equals:
A) Current Assets − Current Liabilities ✅
B) Total Assets − Total Liabilities
C) Current Assets + Current Liabilities
D) Cash + Inventory
Q7. Retained earnings represent:
A) Cash held by the company
B) Cumulative profits not distributed as dividends ✅
, C) Paid-in capital
D) Long-term debt
Q8. Which statement reconciles the beginning and ending cash balances?
A) Income Statement
B) Balance Sheet
C) Statement of Cash Flows ✅
D) Statement of Retained Earnings
Q9. Depreciation is added back in the statement of cash flows because:
A) It is a cash expense
B) It is a non-cash expense ✅
C) It increases taxes
D) It reduces equity
Q10. Gross Profit equals:
A) Revenue − Operating Expenses
B) Revenue − COGS ✅
C) Net Income + Taxes
D) EBIT − Interest
Q11. EBITDA stands for:
A) Earnings Before Interest, Taxes, Depreciation, and Amortization ✅
B) Earnings Before Income Tax and Debt Adjustment
C) Equity Before Interest, Tax, Depreciation, and Assets
D) Earnings Based on Total Debt and Assets
Q12. Which ratio measures a firm's ability to pay short-term obligations?
A) Debt-to-Equity
B) Current Ratio ✅
C) ROE
D) Gross Margin
Exam EXAM STUDY GUIDE 2026/2027
ACCURATE QUESTIONS WITH CORRECT
DETAILED SOLUTIONS || 100%
GUARANTEED PASS NEWEST VERSION
📘 Description: This comprehensive revision set covers all key objective assessment
(OA) topics for WGU C214 Financial Management, including financial statements,
ratio analysis, time value of money, capital budgeting, risk & return, cost of
capital, capital structure, dividends, working capital management, international
finance, and ethics. Each question is followed by the correct answer marked with ✅.
🔑 Keywords: WGU C214, Financial Management, OA Exam, MCQ Revision, Financial
Statements, Ratio Analysis, TVM, NPV, IRR, WACC, CAPM, Capital Budgeting, Risk and
Return, Capital Structure, Dividends, Working Capital, International Finance, 2026.
📊 SECTION 1: FINANCIAL STATEMENTS & ANALYSIS (Q1–
Q15)
Q1. Which financial statement shows a company's financial position at a specific
point in time?
A) Income Statement
B) Balance Sheet ✅
C) Statement of Cash Flows
D) Statement of Retained Earnings
,Q2. Which financial statement reports revenues and expenses over a period?
A) Balance Sheet
B) Income Statement ✅
C) Statement of Cash Flows
D) Statement of Equity
Q3. The accounting equation is:
A) Assets = Liabilities − Equity
B) Assets = Liabilities + Equity ✅
C) Equity = Assets + Liabilities
D) Liabilities = Assets + Equity
Q4. Which of the following is a current asset?
A) Land
B) Equipment
C) Inventory ✅
D) Bonds Payable
Q5. Which of the following is a long-term liability?
A) Accounts Payable
B) Accrued Wages
C) Mortgage Payable ✅
D) Short-term Notes
Q6. Net Working Capital equals:
A) Current Assets − Current Liabilities ✅
B) Total Assets − Total Liabilities
C) Current Assets + Current Liabilities
D) Cash + Inventory
Q7. Retained earnings represent:
A) Cash held by the company
B) Cumulative profits not distributed as dividends ✅
, C) Paid-in capital
D) Long-term debt
Q8. Which statement reconciles the beginning and ending cash balances?
A) Income Statement
B) Balance Sheet
C) Statement of Cash Flows ✅
D) Statement of Retained Earnings
Q9. Depreciation is added back in the statement of cash flows because:
A) It is a cash expense
B) It is a non-cash expense ✅
C) It increases taxes
D) It reduces equity
Q10. Gross Profit equals:
A) Revenue − Operating Expenses
B) Revenue − COGS ✅
C) Net Income + Taxes
D) EBIT − Interest
Q11. EBITDA stands for:
A) Earnings Before Interest, Taxes, Depreciation, and Amortization ✅
B) Earnings Before Income Tax and Debt Adjustment
C) Equity Before Interest, Tax, Depreciation, and Assets
D) Earnings Based on Total Debt and Assets
Q12. Which ratio measures a firm's ability to pay short-term obligations?
A) Debt-to-Equity
B) Current Ratio ✅
C) ROE
D) Gross Margin
