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WGU Financial-Management Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Financial Management Concepts | - Financial Environment
|
| Working Capital Management | - Current Liabilities Management
|
| Capital Budgeting | - Cash Flow Estimation
|
| Financial Statement Analysis | - Ratio Analysis
|
| Time Value of Money | - Present and Future Value
|
| Cost of Capital and Capital Structure | - Cost of Capital
|
WGU Financial Management VBC1 Sample Questions:
A start-up company ' s lender is concerned that the company may not be able to meet its financial obligations.
It asks the company to provide it with information regarding its current assets and current liabilities.
Which information would the start-up company need to provide to the lender?
- A. Depreciation of equipment the firm uses for its daily operations
- B. Long-term debt obligations payable to the bank
- C. Obligations that require cash within the next year
- D. Investments that the firm plans to hold for more than one year
Correct Answer: C 🗳️
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Why might a firm use a combination of methods to calculate the cost of common equity?
- A. To account for one method being significantly more complex
- B. To achieve a more accurate and comprehensive estimate
- C. To focus exclusively on dividend policies
- D. To comply with regulatory requirements
Correct Answer: B 🗳️
What is a limitation of historical mean returns when estimating the cost of common equity?
- A. They apply only to large, established companies.
- B. They require prediction of future dividends.
- C. They are difficult to calculate.
- D. They ignore market conditions and future prospects.
Correct Answer: D 🗳️
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What is a consequence of a firm having a longer cash cycle?
- A. Decreased need to hold cash
- B. Immediate increase in net income
- C. Instantaneous improvement in liquidity
- D. Increased need to hold cash for operations
Correct Answer: D 🗳️
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Ratios for Freedom Rock Bicycles are shown below, along with industry average ratios.
What are appropriate recommendations for Freedom Rock Bicycles based on this analysis?
- A. To increase production expenses and invest in more assets
- B. To maintain current operating expenses and reduce asset levels to be in line with the industry
- C. To focus solely on increasing gross margins to match industry levels
- D. To reduce non-production expenses and evaluate the company's fixed costs
Correct Answer: D 🗳️
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