WGU C214 OA FINANCIAL MANAGEMENT
EXAM PREP STUDY GUIDE QUESTIONS
◉ Net margin is defined as? Answer: Retained earnings / sales
◉ Which item is transferred from the income statement to the
balance sheet? Answer: Depreciation expense and addition to
retained earnings
◉ What item is added to net income to calculate net cash flow?
Answer: Depreciation expense
◉ Which cash flow statement represents cash earned by producing
and selling the product? Answer: Cash flow operations
◉ Which ratio reflects a firms reliance on debt financing? Answer:
Financial leverage
◉ Which action causes a cash outflow? Answer: Increase in
inventory
, ◉ If two firm use different money valuation methods, it is called?
Answer: Accounting Difference
◉ What thee things affect the required return on a security? Answer:
Perceived riskiness
Financial decisions of the firm
Trading in financial markets
◉ Which is the most frequent type of transaction in financial
markets? Answer: Secondary markets
◉ Which of the 5 white financial function keys represents a series of
cash disbursements? Answer: PMT
◉ If payments are made semi-annually, which key inputs must be
adjusted? Answer: PMT, I/Y and N
◉ Which can be defined as change in value of cash over time?
Answer: Interest rate, inflation rate, and discount rate
◉ Which signifies a need to change the calculator to begin mode?
Answer: Recurring payments made at the beginning of the year.
EXAM PREP STUDY GUIDE QUESTIONS
◉ Net margin is defined as? Answer: Retained earnings / sales
◉ Which item is transferred from the income statement to the
balance sheet? Answer: Depreciation expense and addition to
retained earnings
◉ What item is added to net income to calculate net cash flow?
Answer: Depreciation expense
◉ Which cash flow statement represents cash earned by producing
and selling the product? Answer: Cash flow operations
◉ Which ratio reflects a firms reliance on debt financing? Answer:
Financial leverage
◉ Which action causes a cash outflow? Answer: Increase in
inventory
, ◉ If two firm use different money valuation methods, it is called?
Answer: Accounting Difference
◉ What thee things affect the required return on a security? Answer:
Perceived riskiness
Financial decisions of the firm
Trading in financial markets
◉ Which is the most frequent type of transaction in financial
markets? Answer: Secondary markets
◉ Which of the 5 white financial function keys represents a series of
cash disbursements? Answer: PMT
◉ If payments are made semi-annually, which key inputs must be
adjusted? Answer: PMT, I/Y and N
◉ Which can be defined as change in value of cash over time?
Answer: Interest rate, inflation rate, and discount rate
◉ Which signifies a need to change the calculator to begin mode?
Answer: Recurring payments made at the beginning of the year.
