WGU C214 Financial Management OA
Assessment Final Exam 2026-2027 Newest
Version With Complete Questions &
Accurate Detailed Answers (Rationales)
Verified 100% Already Graded A+
Basic balance sheet equation is what?
Equity = Assets - Liabilities
Why is the balance sheet known as the permanent statement?
Because the other statements are reset at the end of the fiscal
year.
How do you calculate the change in retained earnings?
Net income-dividends
Sales - Cost of Sales - other expenses =
Operating Income or EBiT
,Name four accounts that are part of total assets?
Cash, Accounts receivable, inventory, long term assets
Name three accounts that are part of total liabilities?
Bonds, accounts payable and mortgage
Name four accounts that are part of current assets?
Inventory, cash, accounts receivable and short term
investments.
Name three accounts that are only included in cash flow from
financing?
Common stock, dividends paid and bonds payable
Define the statement of cash flows?
Calculated for the same period of time as the incomes
statement is calculated based on the income statement and
changes in the
balance sheet is one of the three basic accounting statements.
, When fixed assets increase what happens to cash?
Cash will decrease
What is the purpose of the statement of cash flows?
Explains the change in cash over the course of the specified
time frame.
Suppose the inventory turnover of a company is higher than
the industry. Based on this observation, which of the following
is most likely?
The firm has too little inventory resulting in lost sales or stock-
outs.
If a company wishes to obtain a bank loan, will it want to
have a higher current ratio or a lower current ratio?
Higher
The Operating Income Return on Investment (OIROI) uses
what elements on the income statement?
EBIT and total assets
Assessment Final Exam 2026-2027 Newest
Version With Complete Questions &
Accurate Detailed Answers (Rationales)
Verified 100% Already Graded A+
Basic balance sheet equation is what?
Equity = Assets - Liabilities
Why is the balance sheet known as the permanent statement?
Because the other statements are reset at the end of the fiscal
year.
How do you calculate the change in retained earnings?
Net income-dividends
Sales - Cost of Sales - other expenses =
Operating Income or EBiT
,Name four accounts that are part of total assets?
Cash, Accounts receivable, inventory, long term assets
Name three accounts that are part of total liabilities?
Bonds, accounts payable and mortgage
Name four accounts that are part of current assets?
Inventory, cash, accounts receivable and short term
investments.
Name three accounts that are only included in cash flow from
financing?
Common stock, dividends paid and bonds payable
Define the statement of cash flows?
Calculated for the same period of time as the incomes
statement is calculated based on the income statement and
changes in the
balance sheet is one of the three basic accounting statements.
, When fixed assets increase what happens to cash?
Cash will decrease
What is the purpose of the statement of cash flows?
Explains the change in cash over the course of the specified
time frame.
Suppose the inventory turnover of a company is higher than
the industry. Based on this observation, which of the following
is most likely?
The firm has too little inventory resulting in lost sales or stock-
outs.
If a company wishes to obtain a bank loan, will it want to
have a higher current ratio or a lower current ratio?
Higher
The Operating Income Return on Investment (OIROI) uses
what elements on the income statement?
EBIT and total assets
