WGU - C214 FINANCIAL MANAGEMENT – FINAL EXAM QUESTIONS WITH CORRECT ANSWERS 2025

WGU - C214 FINANCIAL MANAGEMENT – FINAL EXAM
QUESTIONS WITH CORRECT ANSWERS 2025
StatementAofACashAFlowsA-ACORRECTAANSWERA-
ShowsAtheAchangeAinAcashAbalanceAforAaAperiodAofAtime.AFocusesAonlyAonAitemsAwhereAcashAisAreceived,Ao
rAcashAisApaid.



CashAFlowAfromAOperatingAActivitiesA(CFO)A-ACORRECTAANSWERA-
CashAflowAthatAaAcompanyAgeneratesAasAaAresultAofAday-to-
dayAbusinessAoperations.ADealsAwithACurrentAAssetsAandACurrentALiabilities.



CashAFlowAfromAInvestingAActivitiesA(CFI)A-ACORRECTAANSWERA-
CashAflowAthatAisAgeneratedAfromAinvestmentsAinAlongAtermAassets.



CashAFlowAfromAFinancingAActivitiesA(CFF)A-ACORRECTAANSWERA-
CashAflowAthatAisAusedAtoAfundAtheAcompany.ACashAflowAthatAisAgeneratedAfromAfinancingAtheAbusiness.AIn
cludesADebtA&AEquity.



HowAdoesAanAincreaseAinAAccountsAreceivableAimpactACFO?A-ACORRECTAANSWERA-
AnAIncreaseAinAAccountsAreceivableAwillAdecreaseACFO



HowAdoesAanAincreaseAinAAccountsApayableAimpactACFO?A-ACORRECTAANSWERA-
AnAIncreaseAinAAccountsAPayableAwillAincreaseACFO



WhatAfinancialAstatementAisApreparedAatAaApointAinAtimeA-ACORRECTAANSWERA-BalanceASheet



WhatAfinancialAstatementsAareApreparedAforAaAperiodAofAtime?A-ACORRECTAANSWERA-·AIncomeAStatement

·ARetainedAEarningsAStatement

·AStatementAofACashAFlows



DefineAEfficientAFrontierA-ACORRECTAANSWERA-MaximizesAexpectedAreturnAforAaAgivenAlevelAofArisk



WhereAwouldAaAriskAaverseAinvestorAfallAonAtheAefficientAfrontier?A-ACORRECTAANSWERA-100%ABonds

, WhereAwouldAaArisk-takingAinvestorAfallAonAtheAefficientAfrontier?A-ACORRECTAANSWERA-100%AStocks



WhatAisAaABeta?A-ACORRECTAANSWERA-AAMeasureAofARiskA-
AAABetaA1AisAtheAaverageAriskAofAallAstocks.AAnytimeAaAbetaAisAbelowA1,AitAisAlessArisk.AIfAitAisAmoreAthanA1,AitA

isAhighArisk.



DefineAefficientAmarketAhypothesisAasAitArelatesAtoAaAfirm?A-ACORRECTAANSWERA-
ForAanyAcompanyAtoAsurvive,AtheyAneedAtoAmakeAprofitableAdecisions.AOtherwise,AinvestorsAwillAshunAthei
rAbusiness.ATheAfirmAneedsAtoAinvestAwhereAtheAreturnAisAmoreAthanAtheAcost.



WhatAisAtheAintrinsicAvalueAofAaAstockAunderAefficientAmarketAhypothesis?A-ACORRECTAANSWERA-
TheAintrinsicAvalueAofAstockAisAtheApresentAvalueAofAtheAstock'sAafterAtaxAnetAcashAflows.



WheneverAtheAquestionAstatesAthatAdividendAwasApaidArecentlyAorAwasAjustApaid,AwhatAmustAbeAcalculate
dAfirst?A-ACORRECTAANSWERA-ExpectedADividend



ForAeveryABondAquestion,AwhatAmustAbeAentered?A-ACORRECTAANSWERA-FVAmustAbeAenteredAasA1000

PMTAmustAbeAenteredAasA1000AxACouponARate



WhatAisACapitalABudgeting?A-ACORRECTAANSWERA-RefersAtoAlongAtermAinvestmentAdecisionAmaking.

RefersAtoAtheAprocessAusedAinAmakingAinvestmentAdecisionsAinvolvingAprojectsAthatAgenerateAcashAflowsAo
verAaAmulti-yearAhorizon.



WhatAinformationAisAneededAforAcapitalAbudgeting?A-ACORRECTAANSWERA-InitialAOutlay

(HowAmuchAmoneyAtheAcompanyAisAgoingAtoAinvestAinAtheAcompanyArightAnow)

DifferentialAAnnualACashAFlows

(CashAflowAthatAtheAprojectAwillAgenerateAyearAafterAyear)

TerminalACashAFlow

(CashAflowAgeneratedAatAtheAendAofAtheAproject)