Page 1 of 89
WGU C214 FINANCIAL MANAGEMENT
CONCEPTS 2026 EXAM BANK ALL COMPLETE
(222) CURRENT TESTING QUESTIONS AND
DETAILED CORRECT ANSWERS (VERIFIED)
TOP-RATED A+.
WGU C214
Prepare for your WGU C214 Financial Management Concepts
Exam with this focused study guide designed for students at
Western Governors University. It covers budgeting, capital
structure, financial analysis, investment evaluation, and risk
management. Emphasizes critical thinking, problem-solving,
and practical application of financial management principles.
Suitable for students preparing for the C214 assessment in
financial management concepts.
What is true about the content of an income statement?
A. It reports the assets, liabilities, and the equity at a point in
time.
B. It reports the assets and expenses for a period of time.
C. It reports the expenses and liabilities at a point in time.
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D. It reports the revenues and expenses for a period of time.
✓ ✓...... ANSWER ....... d
What is the basis used to compute a company's income tax
expense?
A. Pretax accounting income.
B. Taxable income.
C. Net operating income.
D. Taxes payable. ✓ ✓...... ANSWER ....... d
A company's trial balance shows $900 in long-term debt. On
which financial statement should this be shown?
A. The general ledger
B. The statement of cash flows
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C. The income statement
D. The balance sheet ✓ ✓...... ANSWER ....... d
What do cash flows from financing activities generally relate
to?
A. A firm's purchase and sale of long-term assets
B. A firm's non-cash transactions
C. A firms' debt and equity transactions
D. A firms sale of goods and services ✓ ✓...... ANSWER
....... c
What is true about the cash flow from the operating activities
section of the statement of cash flows?
A. Increases in current liability accounts represents an
inflow of cash and should be added to net income
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B. Decreases in current liability accounts represent an
outflow of cash and should be added to net income
C. Increases in current liability accounts represent an
outflow of cash and should be subtracted from net income
D. Decreases in current liability accounts represent an
inflow of cash and should be added to net income ✓ ✓......
ANSWER ....... a
An analyst is comparing the ratios of two firms and needs to
address accounting differences. What would be considered
an accounting difference between two firms?
A. The firms are in different industries
B. The firms have different auditors
C. The firms use different inventory methods
D. The firms have different fiscal years ✓ ✓...... ANSWER
....... c
WGU C214 FINANCIAL MANAGEMENT
CONCEPTS 2026 EXAM BANK ALL COMPLETE
(222) CURRENT TESTING QUESTIONS AND
DETAILED CORRECT ANSWERS (VERIFIED)
TOP-RATED A+.
WGU C214
Prepare for your WGU C214 Financial Management Concepts
Exam with this focused study guide designed for students at
Western Governors University. It covers budgeting, capital
structure, financial analysis, investment evaluation, and risk
management. Emphasizes critical thinking, problem-solving,
and practical application of financial management principles.
Suitable for students preparing for the C214 assessment in
financial management concepts.
What is true about the content of an income statement?
A. It reports the assets, liabilities, and the equity at a point in
time.
B. It reports the assets and expenses for a period of time.
C. It reports the expenses and liabilities at a point in time.
, Page 2 of 89
D. It reports the revenues and expenses for a period of time.
✓ ✓...... ANSWER ....... d
What is the basis used to compute a company's income tax
expense?
A. Pretax accounting income.
B. Taxable income.
C. Net operating income.
D. Taxes payable. ✓ ✓...... ANSWER ....... d
A company's trial balance shows $900 in long-term debt. On
which financial statement should this be shown?
A. The general ledger
B. The statement of cash flows
, Page 3 of 89
C. The income statement
D. The balance sheet ✓ ✓...... ANSWER ....... d
What do cash flows from financing activities generally relate
to?
A. A firm's purchase and sale of long-term assets
B. A firm's non-cash transactions
C. A firms' debt and equity transactions
D. A firms sale of goods and services ✓ ✓...... ANSWER
....... c
What is true about the cash flow from the operating activities
section of the statement of cash flows?
A. Increases in current liability accounts represents an
inflow of cash and should be added to net income
, Page 4 of 89
B. Decreases in current liability accounts represent an
outflow of cash and should be added to net income
C. Increases in current liability accounts represent an
outflow of cash and should be subtracted from net income
D. Decreases in current liability accounts represent an
inflow of cash and should be added to net income ✓ ✓......
ANSWER ....... a
An analyst is comparing the ratios of two firms and needs to
address accounting differences. What would be considered
an accounting difference between two firms?
A. The firms are in different industries
B. The firms have different auditors
C. The firms use different inventory methods
D. The firms have different fiscal years ✓ ✓...... ANSWER
....... c
