FINANCIAL MANAGEMET C214 OBJECTIVE ASSESSMENT (OA) WGU
EXAM / WGU C214 FINANCIAL MANAGEMENT PRE- ASSESSMENT
(PA) ACTUAL EXAM 2025/2026 COMPLETE ACCURATE EXAM REAL
QUESTIONS WITH WELL ELABORATED ANSWERS (VERIFIED
SOLUTIONS) A NEW UPDATED VERSION AND A STUDY GUIDE
|GUARANTEED PASS A+ (BRAND NEW!) WGU C214
What do the content and structure of a balance sheet report?
Answer- The assets, liabilities, and equity at a point in time.
Which statement accurately explains the recognition of revenues and
expenses under accounting income and income for tax purposes?
Answer- Revenues and expenses may be recognized in one period for
accounting income purposes and in a different period for income tax
purposes.
What is the basic equation for a balance sheet?
Answer- Assets=Liabilities + Equity
An analyst is comparing the ratios of two firms and needs to address
timing differences.
What is an example of a timing difference between these two firms?
Answer- The firms have different fiscal years.
,A company’s yearend balance sheet for 2025:
AR: 900
Inventory: 1200
Fixed assets: 1000
AP: 1300
Sales: 4000
Salaries: 275
What is their fixed asset turnover ratio?
Answer- 4.0
A firm has a ROE (return on equity) of 0.27, and the industry average
ROE is 0.24.
Which conclusion should an analyst draw when comparing this firm to
the industry?
Answer- The firm is generating higher returns to owners than the
industry.
,What must have taken place for a firm to recognize revenue, in order for
the firm to comply with the accrual accounting rules?
Answer- The product must have been delivered.
A teacher won $100,000 and invests this money for five years at an
interest rate of 4% (compounded annually). How much will this teacher
have in principal and interest at the end of the five years?
Answer- $121,665
An accountant is 40 years old and has an anticipated retirement age of
70 years old. The accountant plans to save $6000 per year at the end of
the next 30 years to fund retirement.
How much will this accountant have upon retirement, if the accountant
is able to earn 4% annually on this investment?
Answer- $336,510
An investor deposits $2000 per year (beginning today) for 10 years in a
4% interest-bearing account. The last cash flow is received one year
prior to the end of the tenth year.
What is this investor's future balance after 10 years?
Answer- $24,973
, What is the par value (face value) of a bond?
Answer- The sum of money that the corporation promises to pay upon
expiration of the bond.
The market rate of return is 9%. The face value of a bond is $1000, the
coupon rate is 9% with annual compounding, and the bond matures in 10
years.
What is the value of the bond?
Answer- $1000
Which statement is true about fluctuations in bond prices?
Answer- When market interest rates fluctuate, the bond coupon rate is
unchanged.
A company issues bonds at a market price of $925. The face value is
$1,000. The bonds mature in 10 years, and the coupon rate is 6%
compounded semiannually.
What is the yield to maturity (YTM) on this company's bonds?
Answer- 7.06%
EXAM / WGU C214 FINANCIAL MANAGEMENT PRE- ASSESSMENT
(PA) ACTUAL EXAM 2025/2026 COMPLETE ACCURATE EXAM REAL
QUESTIONS WITH WELL ELABORATED ANSWERS (VERIFIED
SOLUTIONS) A NEW UPDATED VERSION AND A STUDY GUIDE
|GUARANTEED PASS A+ (BRAND NEW!) WGU C214
What do the content and structure of a balance sheet report?
Answer- The assets, liabilities, and equity at a point in time.
Which statement accurately explains the recognition of revenues and
expenses under accounting income and income for tax purposes?
Answer- Revenues and expenses may be recognized in one period for
accounting income purposes and in a different period for income tax
purposes.
What is the basic equation for a balance sheet?
Answer- Assets=Liabilities + Equity
An analyst is comparing the ratios of two firms and needs to address
timing differences.
What is an example of a timing difference between these two firms?
Answer- The firms have different fiscal years.
,A company’s yearend balance sheet for 2025:
AR: 900
Inventory: 1200
Fixed assets: 1000
AP: 1300
Sales: 4000
Salaries: 275
What is their fixed asset turnover ratio?
Answer- 4.0
A firm has a ROE (return on equity) of 0.27, and the industry average
ROE is 0.24.
Which conclusion should an analyst draw when comparing this firm to
the industry?
Answer- The firm is generating higher returns to owners than the
industry.
,What must have taken place for a firm to recognize revenue, in order for
the firm to comply with the accrual accounting rules?
Answer- The product must have been delivered.
A teacher won $100,000 and invests this money for five years at an
interest rate of 4% (compounded annually). How much will this teacher
have in principal and interest at the end of the five years?
Answer- $121,665
An accountant is 40 years old and has an anticipated retirement age of
70 years old. The accountant plans to save $6000 per year at the end of
the next 30 years to fund retirement.
How much will this accountant have upon retirement, if the accountant
is able to earn 4% annually on this investment?
Answer- $336,510
An investor deposits $2000 per year (beginning today) for 10 years in a
4% interest-bearing account. The last cash flow is received one year
prior to the end of the tenth year.
What is this investor's future balance after 10 years?
Answer- $24,973
, What is the par value (face value) of a bond?
Answer- The sum of money that the corporation promises to pay upon
expiration of the bond.
The market rate of return is 9%. The face value of a bond is $1000, the
coupon rate is 9% with annual compounding, and the bond matures in 10
years.
What is the value of the bond?
Answer- $1000
Which statement is true about fluctuations in bond prices?
Answer- When market interest rates fluctuate, the bond coupon rate is
unchanged.
A company issues bonds at a market price of $925. The face value is
$1,000. The bonds mature in 10 years, and the coupon rate is 6%
compounded semiannually.
What is the yield to maturity (YTM) on this company's bonds?
Answer- 7.06%
