WGU C214 OA Financial Management Exam Questions and Answers Updated (2024/2025) (Verified Answers)

WGU C214 OA FINANCIAL MANAGEMENT EXAM v v v v v




QUESTIONS AND ANSWERS LATEST UPDATE 2024 -
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2025 VERIFIED
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If accounts receivable increases what is impact on CFO
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CFO decreases v




Are actual taxes paid the same as shown on GAAP income statement
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No. Actual taxes: IRS rules Income statement GAAP
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3. Which decisions require using subjective estimates
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Economic life of a new asset v v v v v




If there is a 30% chance of a recession what is the probability of expansion
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70% - - the sum of the probabilities must equal 100%
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How much interest is paid on a 6% bond over 2 years and 3 months
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6% x 1000 = $60 per year $60 x 2.25 = $135
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How does a "prudent investor" select investments
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Seeks the highest return for "appropriate" amount of risk
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, What do points on the Efficient Frontier measure
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The maximum return for a given level of risk; maximum Return-to-risk ratio
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What is Beta v v




Measure of a stock's risk relative to the market
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Why are accurate forecasts important
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Plan for resources for production; accurate evaluation of capital projects
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Which ratio is used in valuing a private company
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PE ratio in the "Comparable Multiples" method
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What are the 3 costs associated with holding inventory
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Product storage and opportunity
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What risk is eliminated by a diversified portfolio
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Idiosyncratic risk - risk affecting a single firm v v v v v v v




What are the impacts of outsourcing
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Fewer U.S. jobs and lower priced products
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