WGU C214 Object Assessment Financial Management 2023/ 2024 Exam| Questions and Verified Answers| Grade A+

WGU C214 Object Assessment Financial Management 2023/ 2024 Exam| Questions and Verified Answers| Grade A+

WGU C214 Object Assessment Financial
Management 2023/ 2024 Exam| Questions
and Verified Answers| Grade A+
Q: Why would we reject a project based on IRR?
Answer:
The discount rate is higher than the IRR
Q: What are two key elements of differential cash flow?
Answer:
Depreciation expense and net income
Q: Why is the NPV preferred over the IRR?
Answer:
It measures the dollar value and is more reliable.
Q: When a company uses more leverage as evidenced by a higher degree of either financial or
operating leverage, what effect does it have on changes in profitability?
Answer:
Higher leverage leads to higher profitability for a given sale level.
Q: What does the degree of financial leverage indicate?

Answer:
The reliance on debt
Q: If a company has a high degree of financial leverage, what does that tell us about the firms
risk profile?
Answer:
Financial leverage also means that more financing is done through debt, not equity. Higher
profits to shareholders.
Q: What is the cash cycle?
Answer:
The amount of time to regenerate cash.
Q: Why is float important to understand?
Answer:
To time cash expenditures
Q: What should a company do to manage its working capital?
Answer:
Collect quickly and pay slowly
Q: Name what characterizes increased collection float?
Answer:
Increased float indicates slower processing time.

Q: In regards to Accounts Payable Balances, what is a good policy?
Answer:
Paying off A/P on the last day due is a good policy.
Q: What would be a good source of information to determine replacement cost?
Answer:
Building Appraisal
Q: Dodd-Frank Act regulates which segment of the U.S economy?
Answer:
Banking industry
Q: What is the regulatory body that overseas the systematic risk in banking?
Answer:
Financial stability oversight council
Q: The SEC securities and Exchange Commission requires companies to do the following three
things:
Answer:
Register all public offerings, regulate stock sales and ensure transparency through uniform
reporting.
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