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WGU D076 FINANCIAL SKILLS FOR MANAGERS
EXAM PREP 2026 | ALL QUESTIONS AND CORRECT
DETAILED ANSWERS | RATED A+ | NEW!!
1. What is a reasonable alternative to keeping an emergency stash of cash?: In-
vesting in a savings account
Investing in a readily withdrawable account that still earns some interest is a value-preserving alternative.
2. Which area of finance deals with sources of funding and the capital
structure of corporations and seeks to increase the value of a firm to its owners?:
Business finance is the area of finance that deals with uses and sources of funding to increase the value of the
firm.
3. What is the primary difference between finance and accounting?: Finance
focuses on the future, while accounting is generally backward-looking.
4. Which subspecialty of finance primarily involves deciding which assets will
create more wealth and earn positive returns?: Investments is the area of finance that seeks to
create wealth in the future by deciding where to allocate money.
5. What is the primary goal of the financial manager of a firm?: To maximize
owner wealth.
The financial manager should make decisions based on the primary goal of maximizing owner wealth.
6. What should be the main question a firm asks when considering any
invest- ment decision?: Do the benefits of this investment outweigh the costs?
For any investment, you should expect to receive a benefit worth at least as much as the initial cost.
7. What is the primary aim of personal finance goals?: To maximize satisfaction from products
purchased and services obtained. The objective of personal financial goals is to maximize one's utility.
8. Which task does a financial manager perform when choosing to obtain a
loan to purchase a piece of equipment for a new project?: Making financing
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decisions.
The manager is deciding where to get the funds to support a new project, which means the manager is making a
financing decision.
9. Which financial career focuses on investing capital into firms whose shares
are not currently sold on any public stock exchange?: Private equity deals with
investments in firms that are privately held and whose ownership is not yet bought or sold on any public stock
exchange.
10. Which task does a financial manager perform when assessing the costs and
benefits of potential projects?: Making investment decisions
Managing working capital means overseeing day-to-day operations and cash flows.
11. What tool can you use to understand your overall personal cash flows?:
Bud- geting helps you to understand your income and expenses and to analyze your cash flows.
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12. You want to buy a house, so you obtain a mortgage for which you can
afford the monthly payments. What process have you engaged in as part of
your financial decision-making?: Financing
Part of the personal finance process is figuring out how to finance your goals in a way that is within your means
13. What area of finance involves deciding which assets to invest in to
create wealth in the future?: Investments
Investments are an area of finance that involves deciding which assets to invest in to create wealth in the future.
14. Hannah is the financial manager of a firm. A project that she has recom-
mended has been approved and will cost $5 million. Since the company does
not have enough cash on reserve, Hannah must figure out how to raise
enough money to start the project. She can choose whether to issue new
bonds, new stocks, a mortgage loan, or some combination of those options.
What task is Hannah performing in this scenario?: Making a financing decision
Since the project has already been approved, Hannah is trying to find a way to finance the investment and considering
its capital structure.
15. Maria and Mateo are setting financial goals. They decide that they need
to save $200 each month to reach their goal of taking their children to visit
their grandparents in Spain next summer. What is the objective of setting
such a goal?: To maximize individual utility
While everyone has ditterent personal financial goals, the objectives of such goals is to maximize individual utility
16. Which professional works with individuals to help them achieve their
finan- cial goals?: Financial planner
Professional financial planners work with individuals to help them achieve their financial goals.
17. Omar is about to purchase a new car for $30,000. He knows he wants to
buy the car, but he is still trying to decide how to pay for it. He has barely
over
$30,000 in his bank account. He can either take out an auto loan from a bank
or use a mix of cash and an auto loan. In this scenario, what is Omar doing?:
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Financing a goal
He has already made a decision to purchase the car and is now deciding on financing options.
18. What are the purposes of financial markets?: The purposes of financial markets are to
provide liquidity and to determine prices.
WGU D076 FINANCIAL SKILLS FOR MANAGERS
EXAM PREP 2026 | ALL QUESTIONS AND CORRECT
DETAILED ANSWERS | RATED A+ | NEW!!
1. What is a reasonable alternative to keeping an emergency stash of cash?: In-
vesting in a savings account
Investing in a readily withdrawable account that still earns some interest is a value-preserving alternative.
2. Which area of finance deals with sources of funding and the capital
structure of corporations and seeks to increase the value of a firm to its owners?:
Business finance is the area of finance that deals with uses and sources of funding to increase the value of the
firm.
3. What is the primary difference between finance and accounting?: Finance
focuses on the future, while accounting is generally backward-looking.
4. Which subspecialty of finance primarily involves deciding which assets will
create more wealth and earn positive returns?: Investments is the area of finance that seeks to
create wealth in the future by deciding where to allocate money.
5. What is the primary goal of the financial manager of a firm?: To maximize
owner wealth.
The financial manager should make decisions based on the primary goal of maximizing owner wealth.
6. What should be the main question a firm asks when considering any
invest- ment decision?: Do the benefits of this investment outweigh the costs?
For any investment, you should expect to receive a benefit worth at least as much as the initial cost.
7. What is the primary aim of personal finance goals?: To maximize satisfaction from products
purchased and services obtained. The objective of personal financial goals is to maximize one's utility.
8. Which task does a financial manager perform when choosing to obtain a
loan to purchase a piece of equipment for a new project?: Making financing
,2 | Page
decisions.
The manager is deciding where to get the funds to support a new project, which means the manager is making a
financing decision.
9. Which financial career focuses on investing capital into firms whose shares
are not currently sold on any public stock exchange?: Private equity deals with
investments in firms that are privately held and whose ownership is not yet bought or sold on any public stock
exchange.
10. Which task does a financial manager perform when assessing the costs and
benefits of potential projects?: Making investment decisions
Managing working capital means overseeing day-to-day operations and cash flows.
11. What tool can you use to understand your overall personal cash flows?:
Bud- geting helps you to understand your income and expenses and to analyze your cash flows.
,3 | Page
12. You want to buy a house, so you obtain a mortgage for which you can
afford the monthly payments. What process have you engaged in as part of
your financial decision-making?: Financing
Part of the personal finance process is figuring out how to finance your goals in a way that is within your means
13. What area of finance involves deciding which assets to invest in to
create wealth in the future?: Investments
Investments are an area of finance that involves deciding which assets to invest in to create wealth in the future.
14. Hannah is the financial manager of a firm. A project that she has recom-
mended has been approved and will cost $5 million. Since the company does
not have enough cash on reserve, Hannah must figure out how to raise
enough money to start the project. She can choose whether to issue new
bonds, new stocks, a mortgage loan, or some combination of those options.
What task is Hannah performing in this scenario?: Making a financing decision
Since the project has already been approved, Hannah is trying to find a way to finance the investment and considering
its capital structure.
15. Maria and Mateo are setting financial goals. They decide that they need
to save $200 each month to reach their goal of taking their children to visit
their grandparents in Spain next summer. What is the objective of setting
such a goal?: To maximize individual utility
While everyone has ditterent personal financial goals, the objectives of such goals is to maximize individual utility
16. Which professional works with individuals to help them achieve their
finan- cial goals?: Financial planner
Professional financial planners work with individuals to help them achieve their financial goals.
17. Omar is about to purchase a new car for $30,000. He knows he wants to
buy the car, but he is still trying to decide how to pay for it. He has barely
over
$30,000 in his bank account. He can either take out an auto loan from a bank
or use a mix of cash and an auto loan. In this scenario, what is Omar doing?:
,4 | Page
Financing a goal
He has already made a decision to purchase the car and is now deciding on financing options.
18. What are the purposes of financial markets?: The purposes of financial markets are to
provide liquidity and to determine prices.
