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WGU Financial-Management Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Time Value of Money | - Present and Future Value
|
| Topic 2: Financial Statement Analysis | - Ratio Analysis
|
| Topic 3: Financial Management Concepts | - Financial Environment
|
| Topic 4: Cost of Capital and Capital Structure | - Leverage and Capital Structure
|
| Topic 5: Capital Budgeting | - Cash Flow Estimation
|
| Topic 6: Working Capital Management | - Current Liabilities Management
|
WGU Financial Management VBC1 Sample Questions:
During the last year, Kretsmatt had the following cash flows:
* The firm had sales of $20,000 and net income of $5,000. Dividends of $1,000 were paid, and there were no changes to working capital accounts.
* The company purchased new equipment for $3,000. There were no sales of equipment and no depreciation expense recorded during the year.
* The company raised no funds through external financing and repaid no debt.
How much were Kretsmatt's net cash flows from financing for the year?
- A. The firm's net cash flows from financing were an inflow of $4,000.
- B. The firm's net cash flows from financing were an outflow of $3,000.
- C. The firm's net cash flows from financing were an inflow of $5,000.
- D. The firm's net cash flows from financing were an outflow of $1,000.
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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 focus solely on increasing gross margins to match industry levels
- B. To maintain current operating expenses and reduce asset levels to be in line with the industry
- C. To reduce non-production expenses and evaluate the company's fixed costs
- D. To increase production expenses and invest in more assets
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What is a benefit of a firm extending credit to customers in a competitive market?
- A. Immediate cash inflows from sales
- B. Increased sales to non-cash buyers
- C. Decreased sales due to increased prices
- D. Reduced customer base due to credit terms
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What is the Securities and Exchange Commission's (SEC's) Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system used for?
- A. Regulating the Federal Reserve
- B. Insuring deposit accounts
- C. Electronic trading of securities
- D. Online filing and retrieval of company filings
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What is a limitation of historical mean returns when estimating the cost of common equity?
- A. They require prediction of future dividends.
- B. They are difficult to calculate.
- C. They ignore market conditions and future prospects.
- D. They apply only to large, established companies.
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