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WGU - C214: Financial Management
2025/2026 Exam All Answers and
Illustrations Given
If accounts receivable increases, what is the impact on CFO? - 🧠 ANSWER
✔✔CFO decreases
Are actual taxes paid the same as how on the GAAP income statement? - 🧠
ANSWER ✔✔No.
Actual Taxes = IRS Rules
Income Statement = GAAP
Which decisions require using subjective estimates? - 🧠 ANSWER ✔✔Economic
life of a new asset.
If there is a 30% change of a recession, what is the probability of expansion? - 🧠
ANSWER ✔✔70%
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
1
STATEMENT. ALL RIGHTS RESERVED
, 2
*The sum of probabilities must equal 100%
How much interest is paid on a 6% bond over 2 years and 3 months? - 🧠 ANSWER
✔✔2 years and 3 months:
2 + (3/12) = 2 + (.25) = 2.25
6% x 1,000 = $60 per year
$60 x 2.25 = $135
How does a "prudent investor" select investments? - 🧠 ANSWER ✔✔Seeks the
highest return for "appropriate" amount of risk.
What do points on the Efficient Frontier measure? - 🧠 ANSWER ✔✔The
maximum return for a given level of risk; maximum Return-to-Risk ratio.
What is "Beta?" - 🧠 ANSWER ✔✔Measure of a stock's risk relative to the market.
Why are accurate forecasts important? - 🧠 ANSWER ✔✔Plan for resources for
production; accurate evaluation of capital projects.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
WGU - C214: Financial Management
2025/2026 Exam All Answers and
Illustrations Given
If accounts receivable increases, what is the impact on CFO? - 🧠 ANSWER
✔✔CFO decreases
Are actual taxes paid the same as how on the GAAP income statement? - 🧠
ANSWER ✔✔No.
Actual Taxes = IRS Rules
Income Statement = GAAP
Which decisions require using subjective estimates? - 🧠 ANSWER ✔✔Economic
life of a new asset.
If there is a 30% change of a recession, what is the probability of expansion? - 🧠
ANSWER ✔✔70%
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
1
STATEMENT. ALL RIGHTS RESERVED
, 2
*The sum of probabilities must equal 100%
How much interest is paid on a 6% bond over 2 years and 3 months? - 🧠 ANSWER
✔✔2 years and 3 months:
2 + (3/12) = 2 + (.25) = 2.25
6% x 1,000 = $60 per year
$60 x 2.25 = $135
How does a "prudent investor" select investments? - 🧠 ANSWER ✔✔Seeks the
highest return for "appropriate" amount of risk.
What do points on the Efficient Frontier measure? - 🧠 ANSWER ✔✔The
maximum return for a given level of risk; maximum Return-to-Risk ratio.
What is "Beta?" - 🧠 ANSWER ✔✔Measure of a stock's risk relative to the market.
Why are accurate forecasts important? - 🧠 ANSWER ✔✔Plan for resources for
production; accurate evaluation of capital projects.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
