WGU C214 Financial Management OA Exam Guide
Newest 2026/2027 Questions and Correct Detailed
Answers Already Graded A+
Which signifies a need to change the calculator to begin mode? - CORRECT
ANSWER-Recurring payments made at the beginning of the year.
Why is an annuity due more valuable than an ordinary annuity? - CORRECT
ANSWER-Payment are received earlier
Which is always larger? - CORRECT ANSWER-Future value
If you wanted to create an annuity with annual adjustments for inflation, you
would use: - CORRECT ANSWER-Perpetual growth annuity
Which ratio will always be smaller? - CORRECT ANSWER-Net margin
If net working capital increases, it causes? - CORRECT ANSWER-A cash outflow
,What feature distinguishes bonds from stocks? - CORRECT ANSWER-Periodic
cash payments must be made to investors and capital gains can be realized by
investors.
Yield on a bond can best be described as? - CORRECT ANSWER-Rate of
increase in value if investment
When is the bond yield equal to the coupon rate? - CORRECT ANSWER-At pr
price
For a semi annual pay bond, which inputs must be adjusted? - CORRECT
ANSWER-N, I/Y and PMT
Which describes the relationship between price and yield? - CORRECT
ANSWER-Price increases cause yield decreases
Which does not affect a bonds required yield? - CORRECT ANSWER-Expected
growth rate
A bonds duration causes? - CORRECT ANSWER-Market risk
, If a bonds price is at a discount, then? - CORRECT ANSWER-Bond yield is more
than the coupon rate
What is the difference between common and preferred stock? - CORRECT
ANSWER-Preferred stock dividends are fixed
Trading on the NYSE is executed without a specialist (i.e. a market maker). True or
False? - CORRECT ANSWER-False
Stocks and Bonds are two types of financial instruments. True or False? -
CORRECT ANSWER-True
When revenue is matched with cost of sales in an Income statement it is called? -
CORRECT ANSWER-Matching principle
Basic balance sheet equation is what? - CORRECT ANSWER-Equity = Assets -
Liabilities
Why is the balance sheet known as the permanent statement? - CORRECT
ANSWER-Because the other statements are reset at the end of the fiscal year.
Newest 2026/2027 Questions and Correct Detailed
Answers Already Graded A+
Which signifies a need to change the calculator to begin mode? - CORRECT
ANSWER-Recurring payments made at the beginning of the year.
Why is an annuity due more valuable than an ordinary annuity? - CORRECT
ANSWER-Payment are received earlier
Which is always larger? - CORRECT ANSWER-Future value
If you wanted to create an annuity with annual adjustments for inflation, you
would use: - CORRECT ANSWER-Perpetual growth annuity
Which ratio will always be smaller? - CORRECT ANSWER-Net margin
If net working capital increases, it causes? - CORRECT ANSWER-A cash outflow
,What feature distinguishes bonds from stocks? - CORRECT ANSWER-Periodic
cash payments must be made to investors and capital gains can be realized by
investors.
Yield on a bond can best be described as? - CORRECT ANSWER-Rate of
increase in value if investment
When is the bond yield equal to the coupon rate? - CORRECT ANSWER-At pr
price
For a semi annual pay bond, which inputs must be adjusted? - CORRECT
ANSWER-N, I/Y and PMT
Which describes the relationship between price and yield? - CORRECT
ANSWER-Price increases cause yield decreases
Which does not affect a bonds required yield? - CORRECT ANSWER-Expected
growth rate
A bonds duration causes? - CORRECT ANSWER-Market risk
, If a bonds price is at a discount, then? - CORRECT ANSWER-Bond yield is more
than the coupon rate
What is the difference between common and preferred stock? - CORRECT
ANSWER-Preferred stock dividends are fixed
Trading on the NYSE is executed without a specialist (i.e. a market maker). True or
False? - CORRECT ANSWER-False
Stocks and Bonds are two types of financial instruments. True or False? -
CORRECT ANSWER-True
When revenue is matched with cost of sales in an Income statement it is called? -
CORRECT ANSWER-Matching principle
Basic balance sheet equation is what? - CORRECT ANSWER-Equity = Assets -
Liabilities
Why is the balance sheet known as the permanent statement? - CORRECT
ANSWER-Because the other statements are reset at the end of the fiscal year.
