WGUl D775l Pre-l Assessmentl V1l (NEWl
2026/l 2027l Update)l Questionsl &l Answersl
|l Gradel A|l 100%l Correctl (Verifiedl
Solutions)
QUESTION
Whichl ratiol identifiesl thel profitabilityl relativel tol equity?
Answer:
Returnl onl equity
QUESTION
Inl whatl typel ofl businessl wouldl al managerl expectl tol seel thel widestl disparityl betweenl
thel quickl ratiol andl thel currentl ratio?
Answer:
Firml withl highl inventory
QUESTION
Al brand-newl retaill companyl isl concernedl aboutl whichl productsl tol holdl onl storel
shelves.l
Howl mightl thisl companyl usel itsl inventoryl turnoverl ratiol tol guidel thisl decision?
Answer:
Byl ensuringl optimall inventoryl managementl tol balancel salesl demandl andl inventoryl levels
QUESTION
,Thel newl managerl ofl al sportingl goodsl retailerl noticesl thatl thel inventoryl turnoverl forl
thel storel isl belowl 3.l Thel manager'sl goall isl tol increasel inventoryl turnoverl tol 5.l
Whichl stepl willl helpl increasel inventoryl turnoverl inl thel sportingl goodsl store?
Answer:
Featurel productsl forl sportsl andl activitiesl thatl arel inl season
QUESTION
Whatl doesl al highl quickl ratiol indicatel duringl anl economicl downturn?
Answer:
Itl showsl thel companyl canl coverl obligationsl withoutl sellingl inventory.
QUESTION
Al personall computerl manufacturerl withl predicablel highl levelsl ofl salesl andl earningsl isl
seekingl tol expandl intol otherl consumerl technologies.l Tol fundl thisl venture,l thel companyl
willl needl $5,000,000l tol developl newl productsl andl bringl theml tol market.l Thel
company'sl currentl debt-to-assetsl ratiol isl 30%l (industryl averagel isl 50%)l andl itsl time-
interestl earnedl ratiol 60l (industryl averagel isl 54).l
Whatl shouldl managementl dol ifl thel boardl ofl directorsl wantsl tol findl thel leastl expensivel
wayl tol financel thisl venture?
Answer:
Usel debt,l asl thel firml hasl favorablel leveragel ratiosl andl debtl isl lessl expensive
QUESTION
Anl investorl isl comparingl thel profitl marginsl ofl twol locall dryl cleaningl chains.l Companyl
Al hasl 2l locationsl andl al profitl marginl ofl 35%.l Companyl Bl hasl 10l locationsl andl al
profitl marginl ofl 47%.l
Whatl doesl thel investorl concludel aboutl thel owners'l results?
Answer:
, Companyl Bl isl morel efficientl operationally.
QUESTION
Al bigl boxl retailerl isl preparingl forl itsl busiestl salesl seasonl ofl thel year,l whichl isl
betweenl Novemberl 1stl andl Decemberl 31st.l
Whichl twol componentsl withinl thel firm'sl variousl ratiosl willl changel thel mostl duringl thel
lastl 60l daysl ofl thel year?
Answer:
Revenuel andl inventory
QUESTION
Whichl strategyl shouldl al companyl withl al highl currentl ratiol andl al lowl cashl ratiol usel
tol improvel itsl liquidity?
Answer:
Increasel itsl liquidityl throughl fasterl collectionl ofl receivables
QUESTION
Whichl decisionl shouldl al companyl makel ifl itl hasl al lowl totall assetl turnoverl (TAT)l
ratio?
Answer:
Eliminatel inefficientl orl unproductivel assets
QUESTION
Anl aircraftl manufacturerl wantsl tol makel surel itl canl payl year-endl bonusesl tol employeesl
inl 30l days.l
Whichl metricl shouldl managersl usel tol determinel whetherl bonusesl canl bel paid?
Answer:
Quickl ratio
2026/l 2027l Update)l Questionsl &l Answersl
|l Gradel A|l 100%l Correctl (Verifiedl
Solutions)
QUESTION
Whichl ratiol identifiesl thel profitabilityl relativel tol equity?
Answer:
Returnl onl equity
QUESTION
Inl whatl typel ofl businessl wouldl al managerl expectl tol seel thel widestl disparityl betweenl
thel quickl ratiol andl thel currentl ratio?
Answer:
Firml withl highl inventory
QUESTION
Al brand-newl retaill companyl isl concernedl aboutl whichl productsl tol holdl onl storel
shelves.l
Howl mightl thisl companyl usel itsl inventoryl turnoverl ratiol tol guidel thisl decision?
Answer:
Byl ensuringl optimall inventoryl managementl tol balancel salesl demandl andl inventoryl levels
QUESTION
,Thel newl managerl ofl al sportingl goodsl retailerl noticesl thatl thel inventoryl turnoverl forl
thel storel isl belowl 3.l Thel manager'sl goall isl tol increasel inventoryl turnoverl tol 5.l
Whichl stepl willl helpl increasel inventoryl turnoverl inl thel sportingl goodsl store?
Answer:
Featurel productsl forl sportsl andl activitiesl thatl arel inl season
QUESTION
Whatl doesl al highl quickl ratiol indicatel duringl anl economicl downturn?
Answer:
Itl showsl thel companyl canl coverl obligationsl withoutl sellingl inventory.
QUESTION
Al personall computerl manufacturerl withl predicablel highl levelsl ofl salesl andl earningsl isl
seekingl tol expandl intol otherl consumerl technologies.l Tol fundl thisl venture,l thel companyl
willl needl $5,000,000l tol developl newl productsl andl bringl theml tol market.l Thel
company'sl currentl debt-to-assetsl ratiol isl 30%l (industryl averagel isl 50%)l andl itsl time-
interestl earnedl ratiol 60l (industryl averagel isl 54).l
Whatl shouldl managementl dol ifl thel boardl ofl directorsl wantsl tol findl thel leastl expensivel
wayl tol financel thisl venture?
Answer:
Usel debt,l asl thel firml hasl favorablel leveragel ratiosl andl debtl isl lessl expensive
QUESTION
Anl investorl isl comparingl thel profitl marginsl ofl twol locall dryl cleaningl chains.l Companyl
Al hasl 2l locationsl andl al profitl marginl ofl 35%.l Companyl Bl hasl 10l locationsl andl al
profitl marginl ofl 47%.l
Whatl doesl thel investorl concludel aboutl thel owners'l results?
Answer:
, Companyl Bl isl morel efficientl operationally.
QUESTION
Al bigl boxl retailerl isl preparingl forl itsl busiestl salesl seasonl ofl thel year,l whichl isl
betweenl Novemberl 1stl andl Decemberl 31st.l
Whichl twol componentsl withinl thel firm'sl variousl ratiosl willl changel thel mostl duringl thel
lastl 60l daysl ofl thel year?
Answer:
Revenuel andl inventory
QUESTION
Whichl strategyl shouldl al companyl withl al highl currentl ratiol andl al lowl cashl ratiol usel
tol improvel itsl liquidity?
Answer:
Increasel itsl liquidityl throughl fasterl collectionl ofl receivables
QUESTION
Whichl decisionl shouldl al companyl makel ifl itl hasl al lowl totall assetl turnoverl (TAT)l
ratio?
Answer:
Eliminatel inefficientl orl unproductivel assets
QUESTION
Anl aircraftl manufacturerl wantsl tol makel surel itl canl payl year-endl bonusesl tol employeesl
inl 30l days.l
Whichl metricl shouldl managersl usel tol determinel whetherl bonusesl canl bel paid?
Answer:
Quickl ratio
