WGU D076 FINANCE SKILLS FOR MANAGERS
MODULE 9 PRACTICE TEST 2026 QUESTIONS
WITH CORRECT ANSWERS
◉ Average Collection Period (ACP). Answer: the average length of
time required to convert the firm's receivables into cash, that is, to
collect cash following a sale.
Uses the accounts receivable turnover number (7) as denominator.
365/7 = so 52 days to collect receivables.
◉ coupon rate. Answer: The stated interest rate of a bond; also
known as coupon yield
◉ Market Capitalization. Answer: The current market value of a
publicly traded companys total outstanding shares, indicating the
size of a company
◉ financial risk. Answer: risk associated with a monetary outlay;
includes the initial cost of the purchase, as well as the costs of using
the item or service
, ◉ trend analysis. Answer: Looking at financial ratios over time.
Sometimes 5 years back and 3 forward, which leads to future
forecast.
◉ Total Asset Turnover. Answer: Sales/Total Assets
How efficiently a firm is using assets to generate sales.
◉ Timing issues (limitation of financial reports). Answer: This
limitation to financial reports refers to how businesses can exploit
timing issues in financial statements to give a misleading impression
of the financial position of the business. For example, when an
accountant records revenue, they should also record at the same
time any expenses that were directly related to that revenue.
Seasonal firms (Christmas tree farm) or high growth firms.
◉ Accounting Issues. Answer: Different types of inventory systems
lead to different quick ratios - a potential deficit of ratio comparison
◉ Quick Ratio. Answer: (Current Assets - Inventory) / Current
Liabilities
MODULE 9 PRACTICE TEST 2026 QUESTIONS
WITH CORRECT ANSWERS
◉ Average Collection Period (ACP). Answer: the average length of
time required to convert the firm's receivables into cash, that is, to
collect cash following a sale.
Uses the accounts receivable turnover number (7) as denominator.
365/7 = so 52 days to collect receivables.
◉ coupon rate. Answer: The stated interest rate of a bond; also
known as coupon yield
◉ Market Capitalization. Answer: The current market value of a
publicly traded companys total outstanding shares, indicating the
size of a company
◉ financial risk. Answer: risk associated with a monetary outlay;
includes the initial cost of the purchase, as well as the costs of using
the item or service
, ◉ trend analysis. Answer: Looking at financial ratios over time.
Sometimes 5 years back and 3 forward, which leads to future
forecast.
◉ Total Asset Turnover. Answer: Sales/Total Assets
How efficiently a firm is using assets to generate sales.
◉ Timing issues (limitation of financial reports). Answer: This
limitation to financial reports refers to how businesses can exploit
timing issues in financial statements to give a misleading impression
of the financial position of the business. For example, when an
accountant records revenue, they should also record at the same
time any expenses that were directly related to that revenue.
Seasonal firms (Christmas tree farm) or high growth firms.
◉ Accounting Issues. Answer: Different types of inventory systems
lead to different quick ratios - a potential deficit of ratio comparison
◉ Quick Ratio. Answer: (Current Assets - Inventory) / Current
Liabilities
