WGU D076 FINANCE SKILLS FOR MANAGERS
MODULE 9 CERTIFICATION EVALUATION 2026
FULL QUESTIONS WITH SOLUTIONS
◉ Accounts Receivable Turnover (AR Turnover). Answer: An activity
ratio found by credit sales divided by accounts receivable.
credit sales/accounts receivable
◉ Activity Ratios. Answer: A category of ratios that measure how
well a company uses its assets to generate sales or cash, showing the
firm's operational efficiency and profitability.
◉ Additional Funds Needed (AFN). Answer: Another name for the
discretionary financing needed or external financing needed. It
represents the additional financing needed given a firm's
expectations for future growth.
◉ Affirmative Covenants. Answer: A bond covenant that describes
things the company pledges itself to do in order to protect
bondholders.
◉ Agency Costs. Answer: Costs that are incurred when management
does not act in the best interest of shareholders
,◉ Agency Problem. Answer: When the agent (the management)
does not act in the best interest of the principal (the owners)
◉ Aggressive Assets. Answer: Companies or securities with beta
greater than 1.
◉ Annual Percentage Rate (APR). Answer: The annual interest rate
that is charged for borrowing money or that is earned through
investment.
◉ Annuity. Answer: A stream of cash flows of an equal amount paid
every consecutive period.
◉ Annuity Due. Answer: A series of equal payments made at the
beginning of consecutive periods.
◉ Asset pricing. Answer: The process of valuing assets.
◉ Auction Market. Answer: A secondary market with a physical
location and where prices are determined by investors' willingness
to pay
, ◉ Average Collection Period (ACP). Answer: an activity ratio found
by the number of days in a Year (365) divided by AR turnover.
365/AR turnover
◉ Balance Sheet Forecasting. Answer: Using sales growth and the
profit forecast to construct a pro forma balance sheet to understand
the future implications of the sources and uses of finances.
◉ Banks and Credit Unions. Answer: Receive deposits and extend
loans to individuals and businesses.
◉ Benchmarking. Answer: The process of completing a financial
analysis to compare a firm's financial performance to that of other
similar firms.
◉ Beta. Answer: A variable that describes how the price of a security
varies with the market.
◉ Bid-ask Spread. Answer: The difference between the bid and ask
prices that compensate the specialist for the risk that he or she
bears for willingness to provide liquidity.
◉ Board of Directors. Answer: A group of people who jointly
supervise the activities of an organization.
MODULE 9 CERTIFICATION EVALUATION 2026
FULL QUESTIONS WITH SOLUTIONS
◉ Accounts Receivable Turnover (AR Turnover). Answer: An activity
ratio found by credit sales divided by accounts receivable.
credit sales/accounts receivable
◉ Activity Ratios. Answer: A category of ratios that measure how
well a company uses its assets to generate sales or cash, showing the
firm's operational efficiency and profitability.
◉ Additional Funds Needed (AFN). Answer: Another name for the
discretionary financing needed or external financing needed. It
represents the additional financing needed given a firm's
expectations for future growth.
◉ Affirmative Covenants. Answer: A bond covenant that describes
things the company pledges itself to do in order to protect
bondholders.
◉ Agency Costs. Answer: Costs that are incurred when management
does not act in the best interest of shareholders
,◉ Agency Problem. Answer: When the agent (the management)
does not act in the best interest of the principal (the owners)
◉ Aggressive Assets. Answer: Companies or securities with beta
greater than 1.
◉ Annual Percentage Rate (APR). Answer: The annual interest rate
that is charged for borrowing money or that is earned through
investment.
◉ Annuity. Answer: A stream of cash flows of an equal amount paid
every consecutive period.
◉ Annuity Due. Answer: A series of equal payments made at the
beginning of consecutive periods.
◉ Asset pricing. Answer: The process of valuing assets.
◉ Auction Market. Answer: A secondary market with a physical
location and where prices are determined by investors' willingness
to pay
, ◉ Average Collection Period (ACP). Answer: an activity ratio found
by the number of days in a Year (365) divided by AR turnover.
365/AR turnover
◉ Balance Sheet Forecasting. Answer: Using sales growth and the
profit forecast to construct a pro forma balance sheet to understand
the future implications of the sources and uses of finances.
◉ Banks and Credit Unions. Answer: Receive deposits and extend
loans to individuals and businesses.
◉ Benchmarking. Answer: The process of completing a financial
analysis to compare a firm's financial performance to that of other
similar firms.
◉ Beta. Answer: A variable that describes how the price of a security
varies with the market.
◉ Bid-ask Spread. Answer: The difference between the bid and ask
prices that compensate the specialist for the risk that he or she
bears for willingness to provide liquidity.
◉ Board of Directors. Answer: A group of people who jointly
supervise the activities of an organization.
