WGU - C214 Financial Management - Final Questions and Correct Detailed Answers (Verified Answers)

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WGU - C214 Financial Management -
Final Questions and Correct Detailed
Answers (Verified Answers)
Q: Statement of Cash Flows


Ans: Shows the change in cash balance for a period of time. Focuses only on
items where cash is received, or cash is paid.



Q: Cash Flow from Operating Activities (CFO)


Ans: Cash flow that a company generates as a result of day-to-day business
operations. Deals with Current Assets and Current Liabilities.



Q: Cash Flow from Investing Activities (CFI)


Ans: Cash flow that is generated from investments in long term assets.



Q: Cash Flow from Financing Activities (CFF)


Ans: Cash flow that is used to fund the company. Cash flow that is generated
from financing the business. Includes Debt & Equity.




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Q: How does an increase in Accounts receivable impact CFO?


Ans: An Increase in Accounts receivable will decrease CFO



Q: How does an increase in Accounts payable impact CFO?


Ans: An Increase in Accounts Payable will increase CFO



Q: What financial statement is prepared at a point in time


Ans: Balance Sheet



Q: What financial statements are prepared for a period of time?


Ans: · Income Statement

· Retained Earnings Statement

· Statement of Cash Flows



Q: Define Efficient Frontier


Ans: Maximizes expected return for a given level of risk



Q: Where would a risk averse investor fall on the efficient

frontier?
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