WGU C214 FINANCIAL MANAGEMENT EXAM
REVIEW 2026/2027 | ACTUAL EXAM QUESTIONS
WITH 100% CORRECT ANSWERS| (100% VERIFIED
BY EXPERTS)ALREADY GRADED A+
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Terms in this set (222)
Trading on the NYSE is executed F
without a specialist (i.e. a market
maker). (T/F)
Stocks and bonds are two types of T
financial instruments (T/F)
The matching principle in accrual a
accounting requires that:
a. Revenues be recognized when the
earnings process is complete and
matches expenses to revenues
recognized.
b. Expenses are matched to the year
in which they are incurred
c. Revenues are matched to the year
in which they are booked
d. Revenues should be large enough
to match expenses
,A basic equation for the balance a
sheet is:
a. Equity = Assets - Liabilities
b. Liabilities = Equity + Assets
c. Assets = Liabilities - Equity
d. Assets = Equity - Liabilities
Why is the Balance Sheet known as a b
permanent statement?
a. Because the statement is sent to
the SEC.
b. Because the other statements are
reset at the end of the fiscal year
c. Because it is printed out and
archived
d. Because it persists in the minds of
the shareholders.
How do you calculate the change in d
Retained Earnings?
a. Ending Retained Earnings -
Change in Cash
b. EBIT divided by Total Assets +
Dividends
c. EBIT - Change in Cash - Dividends
d. Net Income - Dividends
,Which of the following is generally c
true?
a. Gross Profit and Operating Income
are the same
b. Cost of Goods Sold + Operating
Expenses = Net Income
c. Operating Income and EBIT are
the same
d. EBIT + Income Taxes = Net income
Which components are part of total b
assets?
a. Cash, Accounts Receivable, Short
Term Debt
b. Cash Accounts Receivable,
Inventory, Long Term Assets
c. Accounts Payable, Long Term
Assets, Long Term Debt
d. Accounts Payable, Net Income,
Equity
Which components are part of d
current assets?
a. Cash, Accounts Receivable,
Property Plant & Equipment
b. Accounts Receivable, Accounts
Payable, Inventory
c. Long Term Debt, Property Plant &
Equipment, Common Stock
d. Inventory, Cash, Accounts
Receivable, Short Term Investments
, Which components are part of Total c
Liabilities?
a. Accounts Payable, Accounts
Receivable, Short Term Debt
b. Long Term Debt, Common Stock,
Retained Earnings
c. Bonds, Accounts Payable,
Mortgage
d. Common Stock, Long Term Debt,
Short Term Investments
When Fixed Assets increase what c
happens to Cash?
a. Cash stays the same
b. Cash increases
c. Cash decreases
d. Assets decrease
Which is the purpose of the c
statement of cash flows?
a. serves as the replacement for the
income statement and balance sheet
b. explains the change in cash
balance at one point in time
c. explains the change in cash
balance for one period of time
d. both (a) and (b) above
REVIEW 2026/2027 | ACTUAL EXAM QUESTIONS
WITH 100% CORRECT ANSWERS| (100% VERIFIED
BY EXPERTS)ALREADY GRADED A+
Save
Terms in this set (222)
Trading on the NYSE is executed F
without a specialist (i.e. a market
maker). (T/F)
Stocks and bonds are two types of T
financial instruments (T/F)
The matching principle in accrual a
accounting requires that:
a. Revenues be recognized when the
earnings process is complete and
matches expenses to revenues
recognized.
b. Expenses are matched to the year
in which they are incurred
c. Revenues are matched to the year
in which they are booked
d. Revenues should be large enough
to match expenses
,A basic equation for the balance a
sheet is:
a. Equity = Assets - Liabilities
b. Liabilities = Equity + Assets
c. Assets = Liabilities - Equity
d. Assets = Equity - Liabilities
Why is the Balance Sheet known as a b
permanent statement?
a. Because the statement is sent to
the SEC.
b. Because the other statements are
reset at the end of the fiscal year
c. Because it is printed out and
archived
d. Because it persists in the minds of
the shareholders.
How do you calculate the change in d
Retained Earnings?
a. Ending Retained Earnings -
Change in Cash
b. EBIT divided by Total Assets +
Dividends
c. EBIT - Change in Cash - Dividends
d. Net Income - Dividends
,Which of the following is generally c
true?
a. Gross Profit and Operating Income
are the same
b. Cost of Goods Sold + Operating
Expenses = Net Income
c. Operating Income and EBIT are
the same
d. EBIT + Income Taxes = Net income
Which components are part of total b
assets?
a. Cash, Accounts Receivable, Short
Term Debt
b. Cash Accounts Receivable,
Inventory, Long Term Assets
c. Accounts Payable, Long Term
Assets, Long Term Debt
d. Accounts Payable, Net Income,
Equity
Which components are part of d
current assets?
a. Cash, Accounts Receivable,
Property Plant & Equipment
b. Accounts Receivable, Accounts
Payable, Inventory
c. Long Term Debt, Property Plant &
Equipment, Common Stock
d. Inventory, Cash, Accounts
Receivable, Short Term Investments
, Which components are part of Total c
Liabilities?
a. Accounts Payable, Accounts
Receivable, Short Term Debt
b. Long Term Debt, Common Stock,
Retained Earnings
c. Bonds, Accounts Payable,
Mortgage
d. Common Stock, Long Term Debt,
Short Term Investments
When Fixed Assets increase what c
happens to Cash?
a. Cash stays the same
b. Cash increases
c. Cash decreases
d. Assets decrease
Which is the purpose of the c
statement of cash flows?
a. serves as the replacement for the
income statement and balance sheet
b. explains the change in cash
balance at one point in time
c. explains the change in cash
balance for one period of time
d. both (a) and (b) above
