Page 1 of 35
WGU C214 OA FINANCIAL MANAGEMENT
2026 EXAM COMPLETE (160) CURRENT
TESTING QUESTIONS AND DETAILED
CORRECT ANSWERS (VERIFIED) TOP-RATED
A+.
WGU C214
Prepare for your WGU C214 OA Financial Management Exam with
this focused study guide designed for students at Western
Governors University. It covers financial analysis, budgeting,
capital structure, investment evaluation, and managerial
decision-making. Emphasizes problem-solving, data
interpretation, and application of financial principles. Suitable
for students preparing for the C214 objective assessment in
financial management.
How do we compute future levels of spontaneous accounts
✓ ✓...... ANSWER ....... multiply projected levels of sales
by historical percent of sales
NOTE: compare by utilizing previous sales percentages
The formula for a preferred stock word problem is ✓ ✓......
ANSWER ....... dividend rate / discount rate
, Page 2 of 35
NOTE: leave out the PAR value ($1000) provided in the
problem
The formula for a perpetual annuity with "growth" in the
problem is ✓ ✓...... ANSWER ....... PV = payment *
(interest rate - growth rate)
If problem has BEGINNING ✓ ✓...... ANSWER .......
change calculator to BEGIN mode
Hedging strategies ✓ ✓...... ANSWER ....... minimize
differences and reduce exposure of gains and losses due to
the international business climate
The result of imports and exports are ✓ ✓...... ANSWER
....... imports to the US become cheaper to US
consumers while exports become more expensive to foreign
consumers
A collection float can be specifically defined as ✓ ✓......
ANSWER ....... the time it takes for a firm to be able to
use the payments from customers
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All firms wishing to make an IPO for non accredited investors
✓ ✓...... ANSWER ....... must file public disclosure to the
SEC
What is NOT part of the Sarbanes Oxley ACT ✓ ✓......
ANSWER ....... assigning a specific accounting firm to
audit a company
Which ACT instituted in an effort to help prevent bank runs
✓ ✓...... ANSWER ....... Federal Reserve ACT of 1913
prevents bank runs
NOTE: a bank run is when the public runs to withdraw their
money
How is operating balance is different than reserve balance
✓ ✓...... ANSWER ....... operating balance includes cash
held to pay immediate bills like A/P and reserve balance is
cash held for unforeseen circumstances
, Page 4 of 35
Which committee was created from the Dodd Frank ACT ✓
✓...... ANSWER ....... Financial Stability Oversight
Council (FSOC)
NOTE: Dodd Frank ACT was established to prevent banks
from becoming too big to fail; a council was assigned to
carry out the objectives within the ACT
Which ACT limited types of products a consumer bank could
offer or hold, creating a wall between community banks and
investment banks ✓ ✓...... ANSWER ....... Glass-
Steagall Banking ACT of 1933
NOTE: think a "glass wall"
Which ACT loosened the regulations on types of products
banks could offer ✓ ✓...... ANSWER ....... Garn-St.
Germain ACT of 1982
NOTE: think St. Germain is a liqueur; alcohol "loosens" the
senses
FINRA is a private or public organization ✓ ✓...... ANSWER
....... private
WGU C214 OA FINANCIAL MANAGEMENT
2026 EXAM COMPLETE (160) CURRENT
TESTING QUESTIONS AND DETAILED
CORRECT ANSWERS (VERIFIED) TOP-RATED
A+.
WGU C214
Prepare for your WGU C214 OA Financial Management Exam with
this focused study guide designed for students at Western
Governors University. It covers financial analysis, budgeting,
capital structure, investment evaluation, and managerial
decision-making. Emphasizes problem-solving, data
interpretation, and application of financial principles. Suitable
for students preparing for the C214 objective assessment in
financial management.
How do we compute future levels of spontaneous accounts
✓ ✓...... ANSWER ....... multiply projected levels of sales
by historical percent of sales
NOTE: compare by utilizing previous sales percentages
The formula for a preferred stock word problem is ✓ ✓......
ANSWER ....... dividend rate / discount rate
, Page 2 of 35
NOTE: leave out the PAR value ($1000) provided in the
problem
The formula for a perpetual annuity with "growth" in the
problem is ✓ ✓...... ANSWER ....... PV = payment *
(interest rate - growth rate)
If problem has BEGINNING ✓ ✓...... ANSWER .......
change calculator to BEGIN mode
Hedging strategies ✓ ✓...... ANSWER ....... minimize
differences and reduce exposure of gains and losses due to
the international business climate
The result of imports and exports are ✓ ✓...... ANSWER
....... imports to the US become cheaper to US
consumers while exports become more expensive to foreign
consumers
A collection float can be specifically defined as ✓ ✓......
ANSWER ....... the time it takes for a firm to be able to
use the payments from customers
, Page 3 of 35
All firms wishing to make an IPO for non accredited investors
✓ ✓...... ANSWER ....... must file public disclosure to the
SEC
What is NOT part of the Sarbanes Oxley ACT ✓ ✓......
ANSWER ....... assigning a specific accounting firm to
audit a company
Which ACT instituted in an effort to help prevent bank runs
✓ ✓...... ANSWER ....... Federal Reserve ACT of 1913
prevents bank runs
NOTE: a bank run is when the public runs to withdraw their
money
How is operating balance is different than reserve balance
✓ ✓...... ANSWER ....... operating balance includes cash
held to pay immediate bills like A/P and reserve balance is
cash held for unforeseen circumstances
, Page 4 of 35
Which committee was created from the Dodd Frank ACT ✓
✓...... ANSWER ....... Financial Stability Oversight
Council (FSOC)
NOTE: Dodd Frank ACT was established to prevent banks
from becoming too big to fail; a council was assigned to
carry out the objectives within the ACT
Which ACT limited types of products a consumer bank could
offer or hold, creating a wall between community banks and
investment banks ✓ ✓...... ANSWER ....... Glass-
Steagall Banking ACT of 1933
NOTE: think a "glass wall"
Which ACT loosened the regulations on types of products
banks could offer ✓ ✓...... ANSWER ....... Garn-St.
Germain ACT of 1982
NOTE: think St. Germain is a liqueur; alcohol "loosens" the
senses
FINRA is a private or public organization ✓ ✓...... ANSWER
....... private
