WGU C214 Financial Management Final
Exam – 55 Authentic Questions with
100% Verified Answers & Expert
Rationales | A+ Graded 2026
How does an increase in Accounts receivable impact CFO? -
ANSWER---An Increase in Accounts receivable will decrease
CFO
How does an increase in Accounts payable impact CFO? -
ANSWER---An Increase in Accounts Payable will increase CFO
What financial statement is prepared at a point in time -
ANSWER---Balance Sheet
What financial statements are prepared for a period of time? -
ANSWER---· Income Statement
· Retained Earnings Statement
· Statement of Cash Flows
Define Efficient Frontier - ANSWER---Maximizes expected return
for a given level of risk
Where would a risk averse investor fall on the efficient frontier? -
ANSWER---100% Bonds
, WGU C214 Financial Management Final
Exam – 55 Authentic Questions with
100% Verified Answers & Expert
Rationales | A+ Graded 2026
Where would a risk-taking investor fall on the efficient frontier? -
ANSWER---100% Stocks
What is a Beta? - 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.
Define efficient market hypothesis as it relates to a firm? -
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.
What is the intrinsic value of a stock under efficient market
hypothesis? - ANSWER---The intrinsic value of stock is the
present value of the stock's after tax net cash flows.
Whenever the question states that dividend was paid recently or
was just paid, what must be calculated first? - ANSWER---
Expected Dividend
For every Bond question, what must be entered? - ANSWER---FV
must be entered as 1000
Exam – 55 Authentic Questions with
100% Verified Answers & Expert
Rationales | A+ Graded 2026
How does an increase in Accounts receivable impact CFO? -
ANSWER---An Increase in Accounts receivable will decrease
CFO
How does an increase in Accounts payable impact CFO? -
ANSWER---An Increase in Accounts Payable will increase CFO
What financial statement is prepared at a point in time -
ANSWER---Balance Sheet
What financial statements are prepared for a period of time? -
ANSWER---· Income Statement
· Retained Earnings Statement
· Statement of Cash Flows
Define Efficient Frontier - ANSWER---Maximizes expected return
for a given level of risk
Where would a risk averse investor fall on the efficient frontier? -
ANSWER---100% Bonds
, WGU C214 Financial Management Final
Exam – 55 Authentic Questions with
100% Verified Answers & Expert
Rationales | A+ Graded 2026
Where would a risk-taking investor fall on the efficient frontier? -
ANSWER---100% Stocks
What is a Beta? - 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.
Define efficient market hypothesis as it relates to a firm? -
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.
What is the intrinsic value of a stock under efficient market
hypothesis? - ANSWER---The intrinsic value of stock is the
present value of the stock's after tax net cash flows.
Whenever the question states that dividend was paid recently or
was just paid, what must be calculated first? - ANSWER---
Expected Dividend
For every Bond question, what must be entered? - ANSWER---FV
must be entered as 1000
