WGU C214 Financial Management -
Concepts Only: Multi Choice Version
Study Guide | 220 Questions and
Verified Answers | 100% Correct | Grade
A (2026/2027)
This WGU C214 Financial Management "Concepts Only" 222-question set is a popular,
student-compiled study resource designed for the C214 Objective Assessment (OA). It focuses
on key conceptual, non-calculation topics—such as financial ratios, market types, and regulatory
frameworks—essential for passing the exam on the first attempt.
Exam & Study Guide Description
• Purpose: To help students grasp the core financial concepts tested in the OA.
• Key Topics Covered:
o Financial Management Basics: Time value of money, risk and return.
o Financial Statements & Analysis: Understanding assets, liabilities, equity, and
key ratios.
o Markets & Regulations: Secondary markets, stock/bond markets, and the
SEC.
o Corporate Finance: Capital budgeting, cash flow analysis, and capital structure.
• Format: Multiple-choice questions with verified answers designed to mirror the style
of the actual WGU OA.
• Study Strategy TIP: Many students, as seen in Reddit discussions, combine this 222-
question set with a separate "58-minute calculation video" to pass the exam.
This resource is used to ensure quick mastery of definitions to
complement formula-solving skills.
Quiz_________________?
Which of the following is generally true?
a. Gross Profit and Operating Income are the same
1
, b. Cost of Goods Sold + Operating Expenses = Net Income
c. Operating Income and EBIT are the same
d. EBIT + Income Taxes = Net income -
Answer
c
Quiz_________________?
Which components are part of total 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 -
Answer
b
Quiz_________________?
Which components are part of 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 -
Answer
d
Quiz_________________?
2
, Suppose the inventory turnover of a company is higher than the industry. Based on this
observation, which of the following is most likely?
a. The firm has lower liquidity than the industry average.
b. The firm has too much inventory thus impairing overall liquidity.
c. The firm has too little inventory resulting in lost sales or stock-outs.
d. The firm has low sales volume. -
Answer
c
Quiz_________________?
If a company wishes to obtain a bank loan, will it want to have a higher current ratio or a lower
current ratio?
a. higher
b. lower
c. the same
d. it doesn't matter -
Answer
a
Quiz_________________?
If an investor knows the idiosyncratic risk, the investor knows the:
a. Profit Margin percentage
b. Beta Coefficient
c. Operating Leverage
d. Free Cash Flow -
Answer
3
, b
Quiz_________________?
Why would we reject a project based on the NPV?
a. The NPV is lower than the IRR
b. The NPV is lower than investment
c. The NPV is a negative number
d. The IRR is positive. -
Answer
c
Quiz_________________?
Why would we reject a project based on the IRR?
a. The IRR is higher than the sum of the cash flows
b. The discount rate is lower than the IRR
c. The IRR is higher than the NPV
d. The discount rate is higher than the IRR -
Answer
d
Quiz_________________?
Company A wishes to keep 20% of its assets as cash. Company B keeps its cash balance at 5%
of assets. Which of the following statements apply?
a. Company A is less liquid than Company B
b. Company B invests in more working current assets
4
Concepts Only: Multi Choice Version
Study Guide | 220 Questions and
Verified Answers | 100% Correct | Grade
A (2026/2027)
This WGU C214 Financial Management "Concepts Only" 222-question set is a popular,
student-compiled study resource designed for the C214 Objective Assessment (OA). It focuses
on key conceptual, non-calculation topics—such as financial ratios, market types, and regulatory
frameworks—essential for passing the exam on the first attempt.
Exam & Study Guide Description
• Purpose: To help students grasp the core financial concepts tested in the OA.
• Key Topics Covered:
o Financial Management Basics: Time value of money, risk and return.
o Financial Statements & Analysis: Understanding assets, liabilities, equity, and
key ratios.
o Markets & Regulations: Secondary markets, stock/bond markets, and the
SEC.
o Corporate Finance: Capital budgeting, cash flow analysis, and capital structure.
• Format: Multiple-choice questions with verified answers designed to mirror the style
of the actual WGU OA.
• Study Strategy TIP: Many students, as seen in Reddit discussions, combine this 222-
question set with a separate "58-minute calculation video" to pass the exam.
This resource is used to ensure quick mastery of definitions to
complement formula-solving skills.
Quiz_________________?
Which of the following is generally true?
a. Gross Profit and Operating Income are the same
1
, b. Cost of Goods Sold + Operating Expenses = Net Income
c. Operating Income and EBIT are the same
d. EBIT + Income Taxes = Net income -
Answer
c
Quiz_________________?
Which components are part of total 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 -
Answer
b
Quiz_________________?
Which components are part of 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 -
Answer
d
Quiz_________________?
2
, Suppose the inventory turnover of a company is higher than the industry. Based on this
observation, which of the following is most likely?
a. The firm has lower liquidity than the industry average.
b. The firm has too much inventory thus impairing overall liquidity.
c. The firm has too little inventory resulting in lost sales or stock-outs.
d. The firm has low sales volume. -
Answer
c
Quiz_________________?
If a company wishes to obtain a bank loan, will it want to have a higher current ratio or a lower
current ratio?
a. higher
b. lower
c. the same
d. it doesn't matter -
Answer
a
Quiz_________________?
If an investor knows the idiosyncratic risk, the investor knows the:
a. Profit Margin percentage
b. Beta Coefficient
c. Operating Leverage
d. Free Cash Flow -
Answer
3
, b
Quiz_________________?
Why would we reject a project based on the NPV?
a. The NPV is lower than the IRR
b. The NPV is lower than investment
c. The NPV is a negative number
d. The IRR is positive. -
Answer
c
Quiz_________________?
Why would we reject a project based on the IRR?
a. The IRR is higher than the sum of the cash flows
b. The discount rate is lower than the IRR
c. The IRR is higher than the NPV
d. The discount rate is higher than the IRR -
Answer
d
Quiz_________________?
Company A wishes to keep 20% of its assets as cash. Company B keeps its cash balance at 5%
of assets. Which of the following statements apply?
a. Company A is less liquid than Company B
b. Company B invests in more working current assets
4
