2026 GRADED A+ EXAM
WGU - C214 Financial Management – Final ACTUAL QUESTIONS AND WELL
REVISED ANSWERS - LATEST AND COMPLETE UPDATE WITH VERIFIED SOLUTIONS
2026
Statement of Cash Flows - CORRECT ANSWER Shows the change in
cash balance for a period of time. Focuses only on items where cash is received,
or cash is paid.
QUESTION :Cash Flow from Operating Activities (CFO) - CORRECT
ANSWER Cash flow that a company generates as a result of day-to-day
business operations. Deals with Current Assets and Current Liabilities.
QUESTION :Cash Flow from Investing Activities (CFI) - CORRECT ANSWER
Cash flow that is generated from investments in long term assets.
QUESTION :Cash Flow from Financing Activities (CFF) - CORRECT
ANSWER Cash flow that is used to fund the company. Cash flow that is
generated from financing the business. Includes Debt & Equity.
QUESTION :How does an increase in Accounts receivable impact CFO? -
CORRECT ANSWER An Increase in Accounts receivable will decrease
CFO
QUESTION :How does an increase in Accounts payable impact CFO? -
CORRECT ANSWER An Increase in Accounts Payable will increase
CFO
, 2026 GRADED A+ EXAM
QUESTION :What financial statement is prepared at a point in time -
CORRECT ANSWER Balance Sheet
QUESTION :What financial statements are prepared for a period of time? -
CORRECT ANSWER · Income Statement
· Retained Earnings Statement
· Statement of Cash Flows
QUESTION :Define Efficient Frontier - CORRECT ANSWER Maximizes
expected return for a given level of risk
QUESTION :Where would a risk averse investor fall on the efficient frontier? -
CORRECT ANSWER 100% Bonds
QUESTION :Where would a risk-taking investor fall on the efficient frontier? -
CORRECT ANSWER 100% Stocks
QUESTION :What is a Beta? - CORRECT ANSWER A Measure of Risk
- A Beta 1 is the average risk of all stocks. Anytime a beta is below 1, it is less
risk. If it is more than 1, it is high risk.
QUESTION :Define efficient market hypothesis as it relates to a firm? -
CORRECT ANSWER For any company to survive, they need to make
profitable decisions. Otherwise, investors will shun their business. The firm
needs to invest where the return is more than the cost.
WGU - C214 Financial Management – Final ACTUAL QUESTIONS AND WELL
REVISED ANSWERS - LATEST AND COMPLETE UPDATE WITH VERIFIED SOLUTIONS
2026
Statement of Cash Flows - CORRECT ANSWER Shows the change in
cash balance for a period of time. Focuses only on items where cash is received,
or cash is paid.
QUESTION :Cash Flow from Operating Activities (CFO) - CORRECT
ANSWER Cash flow that a company generates as a result of day-to-day
business operations. Deals with Current Assets and Current Liabilities.
QUESTION :Cash Flow from Investing Activities (CFI) - CORRECT ANSWER
Cash flow that is generated from investments in long term assets.
QUESTION :Cash Flow from Financing Activities (CFF) - CORRECT
ANSWER Cash flow that is used to fund the company. Cash flow that is
generated from financing the business. Includes Debt & Equity.
QUESTION :How does an increase in Accounts receivable impact CFO? -
CORRECT ANSWER An Increase in Accounts receivable will decrease
CFO
QUESTION :How does an increase in Accounts payable impact CFO? -
CORRECT ANSWER An Increase in Accounts Payable will increase
CFO
, 2026 GRADED A+ EXAM
QUESTION :What financial statement is prepared at a point in time -
CORRECT ANSWER Balance Sheet
QUESTION :What financial statements are prepared for a period of time? -
CORRECT ANSWER · Income Statement
· Retained Earnings Statement
· Statement of Cash Flows
QUESTION :Define Efficient Frontier - CORRECT ANSWER Maximizes
expected return for a given level of risk
QUESTION :Where would a risk averse investor fall on the efficient frontier? -
CORRECT ANSWER 100% Bonds
QUESTION :Where would a risk-taking investor fall on the efficient frontier? -
CORRECT ANSWER 100% Stocks
QUESTION :What is a Beta? - CORRECT ANSWER A Measure of Risk
- A Beta 1 is the average risk of all stocks. Anytime a beta is below 1, it is less
risk. If it is more than 1, it is high risk.
QUESTION :Define efficient market hypothesis as it relates to a firm? -
CORRECT ANSWER For any company to survive, they need to make
profitable decisions. Otherwise, investors will shun their business. The firm
needs to invest where the return is more than the cost.
