1 for specific request mail
WGU - C214 Financial Management - Final Questions
and Correct Answers | Latest Update
Statement of Cash Flows Ans: Shows the change in cash balance for a
period of time. Focuses only on items where cash is received, or cash is
paid.
Cash Flow from Operating Activities (CFO) Ans: Cash flow that a company
generates as a result of day-to-day business operations. Deals with
Current Assets and Current Liabilities.
Assignment Expert
Cash Flow from Investing Activities (CFI) Ans: Cash flow that is generated
from investments in long term assets.
Guru01 - Stuvia
Cash Flow from Financing Activities (CFF) Ans: Cash flow that is used to
fund the company. Cash flow that is generated from financing the
business. Includes Debt & Equity.
2026
How does an increase in Accounts receivable impact CFO? Ans: An
Increase in Accounts receivable will decrease CFO
©
How does an increase in Accounts payable impact CFO? Ans: An Increase
in Accounts Payable will increase CFO
What financial statement is prepared at a point in time Ans: Balance
Sheet
What financial statements are prepared for a period of time? Ans: ·
Income Statement
· Retained Earnings Statement
· Statement of Cash Flows
Define Efficient Frontier Ans: Maximizes expected return for a given level
of risk
, 2 for specific request mail
Where would a risk averse investor fall on the efficient frontier? Ans:
100% Bonds
Where would a risk-taking investor fall on the efficient frontier? Ans:
100% Stocks
What is a Beta? Ans: A Measure of Risk - A Beta 1 is the average risk of all
stocks. Anytime a beta is below 1, it is less risk. If it is more than 1, it is
high risk.
Define efficient market hypothesis as it relates to a firm? Ans: For any
company to survive, they need to make profitable decisions. Otherwise,
Assignment Expert
investors will shun their business. The firm needs to invest where the
return is more than the cost.
Guru01 - Stuvia
What is the intrinsic value of a stock under efficient market hypothesis?
Ans: The intrinsic value of stock is the present value of the stock's after
tax net cash flows.
2026
Whenever the question states that dividend was paid recently or was just
paid, what must be calculated first? Ans: Expected Dividend
©
For every Bond question, what must be entered? Ans: FV must be entered
as 1000
PMT must be entered as 1000 x Coupon Rate
What is Capital Budgeting? Ans: Refers to long term investment decision
making.
Refers to the process used in making investment decisions involving
projects that generate cash flows over a multi-year horizon.
What information is needed for capital budgeting? Ans: Initial Outlay
(How much money the company is going to invest in the company right
now)
WGU - C214 Financial Management - Final Questions
and Correct Answers | Latest Update
Statement of Cash Flows Ans: Shows the change in cash balance for a
period of time. Focuses only on items where cash is received, or cash is
paid.
Cash Flow from Operating Activities (CFO) Ans: Cash flow that a company
generates as a result of day-to-day business operations. Deals with
Current Assets and Current Liabilities.
Assignment Expert
Cash Flow from Investing Activities (CFI) Ans: Cash flow that is generated
from investments in long term assets.
Guru01 - Stuvia
Cash Flow from Financing Activities (CFF) Ans: Cash flow that is used to
fund the company. Cash flow that is generated from financing the
business. Includes Debt & Equity.
2026
How does an increase in Accounts receivable impact CFO? Ans: An
Increase in Accounts receivable will decrease CFO
©
How does an increase in Accounts payable impact CFO? Ans: An Increase
in Accounts Payable will increase CFO
What financial statement is prepared at a point in time Ans: Balance
Sheet
What financial statements are prepared for a period of time? Ans: ·
Income Statement
· Retained Earnings Statement
· Statement of Cash Flows
Define Efficient Frontier Ans: Maximizes expected return for a given level
of risk
, 2 for specific request mail
Where would a risk averse investor fall on the efficient frontier? Ans:
100% Bonds
Where would a risk-taking investor fall on the efficient frontier? Ans:
100% Stocks
What is a Beta? Ans: A Measure of Risk - A Beta 1 is the average risk of all
stocks. Anytime a beta is below 1, it is less risk. If it is more than 1, it is
high risk.
Define efficient market hypothesis as it relates to a firm? Ans: For any
company to survive, they need to make profitable decisions. Otherwise,
Assignment Expert
investors will shun their business. The firm needs to invest where the
return is more than the cost.
Guru01 - Stuvia
What is the intrinsic value of a stock under efficient market hypothesis?
Ans: The intrinsic value of stock is the present value of the stock's after
tax net cash flows.
2026
Whenever the question states that dividend was paid recently or was just
paid, what must be calculated first? Ans: Expected Dividend
©
For every Bond question, what must be entered? Ans: FV must be entered
as 1000
PMT must be entered as 1000 x Coupon Rate
What is Capital Budgeting? Ans: Refers to long term investment decision
making.
Refers to the process used in making investment decisions involving
projects that generate cash flows over a multi-year horizon.
What information is needed for capital budgeting? Ans: Initial Outlay
(How much money the company is going to invest in the company right
now)
