WGU D276 OBJECTIVE ASSESSMENT FINAL EXAM
LATEST 2025 ACTUAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS WITH RATIONALES
(VERIFIED ANSWERS) |ALREADY GRADED A+
Asset turnover - ✔✔correct answer✔✔Asset turnover is an indicator of how
well a firm uses its assets to generate sales.
Ratios - ✔✔correct answer✔✔Ratios standardize financial data to make them
comparable across firms, even those of distinctly different sizes.
Flexibility - ✔✔correct answer✔✔The ability to adapt to changing financial
circumstances.
Cash to short-term obligations ratio - ✔✔correct answer✔✔A new ratio
created to ensure that the firm has enough cash holdings for short-term
obligations.
Profit margin - ✔✔correct answer✔✔The difference between the cost of
goods sold and the sales revenue.
,Financial security - ✔✔correct answer✔✔A financial instrument that holds
some monetary value.
Investment - ✔✔correct answer✔✔An asset or item acquired with the goal of
generating income or appreciation.
Sales - ✔✔correct answer✔✔The exchange of goods or services for money.
Industry benchmark - ✔✔correct answer✔✔A standard or point of reference
against which things may be compared or assessed in a specific industry.
Cash holdings - ✔✔correct answer✔✔The amount of cash a firm has available
for immediate use.
Accounts receivable - ✔✔correct answer✔✔Money owed to a company by its
customers for goods or services delivered.
Illiquid inventories - ✔✔correct answer✔✔Inventories that cannot be easily
converted into cash.
Cost of goods sold - ✔✔correct answer✔✔The direct costs attributable to the
production of the goods sold in a company.
Sales revenue - ✔✔correct answer✔✔The income received from selling goods
or services.
, Financial activities - ✔✔correct answer✔✔Actions that involve the
management of funds and assets.
Short-term obligations - ✔✔correct answer✔✔Liabilities that are due within
one year.
Activity Ratios - ✔✔correct answer✔✔Also called efficiency ratios or asset use
efficiency ratios, they measure how well a company uses its assets to generate
sales or cash.
Financing Ratios - ✔✔correct answer✔✔Consider how a firm is financed and
assess a firm's ability to pay interest and pay back long-term obligations.
Net Margin of 7% - ✔✔correct answer✔✔Indicates that for every dollar of
revenue, 7 cents remain for the equity holders after all other costs are covered.
Average Collection Period - ✔✔correct answer✔✔Firm A has an average
collection period of 67 days, while the industry norm is 40 days.
Quick Ratio - ✔✔correct answer✔✔Inventory is excluded in the calculation of
the quick ratio because inventory is the least liquid current asset.
Value Stock - ✔✔correct answer✔✔An M/B ratio of less than 1 is considered a
value stock.
LATEST 2025 ACTUAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS WITH RATIONALES
(VERIFIED ANSWERS) |ALREADY GRADED A+
Asset turnover - ✔✔correct answer✔✔Asset turnover is an indicator of how
well a firm uses its assets to generate sales.
Ratios - ✔✔correct answer✔✔Ratios standardize financial data to make them
comparable across firms, even those of distinctly different sizes.
Flexibility - ✔✔correct answer✔✔The ability to adapt to changing financial
circumstances.
Cash to short-term obligations ratio - ✔✔correct answer✔✔A new ratio
created to ensure that the firm has enough cash holdings for short-term
obligations.
Profit margin - ✔✔correct answer✔✔The difference between the cost of
goods sold and the sales revenue.
,Financial security - ✔✔correct answer✔✔A financial instrument that holds
some monetary value.
Investment - ✔✔correct answer✔✔An asset or item acquired with the goal of
generating income or appreciation.
Sales - ✔✔correct answer✔✔The exchange of goods or services for money.
Industry benchmark - ✔✔correct answer✔✔A standard or point of reference
against which things may be compared or assessed in a specific industry.
Cash holdings - ✔✔correct answer✔✔The amount of cash a firm has available
for immediate use.
Accounts receivable - ✔✔correct answer✔✔Money owed to a company by its
customers for goods or services delivered.
Illiquid inventories - ✔✔correct answer✔✔Inventories that cannot be easily
converted into cash.
Cost of goods sold - ✔✔correct answer✔✔The direct costs attributable to the
production of the goods sold in a company.
Sales revenue - ✔✔correct answer✔✔The income received from selling goods
or services.
, Financial activities - ✔✔correct answer✔✔Actions that involve the
management of funds and assets.
Short-term obligations - ✔✔correct answer✔✔Liabilities that are due within
one year.
Activity Ratios - ✔✔correct answer✔✔Also called efficiency ratios or asset use
efficiency ratios, they measure how well a company uses its assets to generate
sales or cash.
Financing Ratios - ✔✔correct answer✔✔Consider how a firm is financed and
assess a firm's ability to pay interest and pay back long-term obligations.
Net Margin of 7% - ✔✔correct answer✔✔Indicates that for every dollar of
revenue, 7 cents remain for the equity holders after all other costs are covered.
Average Collection Period - ✔✔correct answer✔✔Firm A has an average
collection period of 67 days, while the industry norm is 40 days.
Quick Ratio - ✔✔correct answer✔✔Inventory is excluded in the calculation of
the quick ratio because inventory is the least liquid current asset.
Value Stock - ✔✔correct answer✔✔An M/B ratio of less than 1 is considered a
value stock.
