WGU C214 Financial Management -
Topic 1 Question and answers 100%
correct 2025/2026
Capital - correct answer ✔A financial asset that can be used by a firm. An example of capital may be
cash held by a firm or machinery.
Cash - correct answer ✔the most liquid of assets, is the standard medium of exchange and the basis for
measuring and accounting for all other items
Invest - correct answer ✔To exchange something in hope of a return.
Stocks - correct answer ✔Ownership shares in a company. Issuing company does not repay proceeds of
stock sales, since the share holder owns a piece of the company.
Bonds - correct answer ✔A fixed-income financing statement
Corporate Finance - correct answer ✔The first area of finance is corporate finance, which focuses on
financial decision-making by a firm's management.
Investments - correct answer ✔The second important area of finance. This area is devoted to
understanding the various types of financial instruments - such as stocks, bonds, etc. - and how to value
these instruments.
Banking or Financial Institution - correct answer ✔The third area of finance is banking.
Working Capital - correct answer ✔the basket of resources a company will use to run the business such
as cash, accounts receivable, and inventory. it is often defined as current assets - current liabilities
Topic 1 Question and answers 100%
correct 2025/2026
Capital - correct answer ✔A financial asset that can be used by a firm. An example of capital may be
cash held by a firm or machinery.
Cash - correct answer ✔the most liquid of assets, is the standard medium of exchange and the basis for
measuring and accounting for all other items
Invest - correct answer ✔To exchange something in hope of a return.
Stocks - correct answer ✔Ownership shares in a company. Issuing company does not repay proceeds of
stock sales, since the share holder owns a piece of the company.
Bonds - correct answer ✔A fixed-income financing statement
Corporate Finance - correct answer ✔The first area of finance is corporate finance, which focuses on
financial decision-making by a firm's management.
Investments - correct answer ✔The second important area of finance. This area is devoted to
understanding the various types of financial instruments - such as stocks, bonds, etc. - and how to value
these instruments.
Banking or Financial Institution - correct answer ✔The third area of finance is banking.
Working Capital - correct answer ✔the basket of resources a company will use to run the business such
as cash, accounts receivable, and inventory. it is often defined as current assets - current liabilities
