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WGU Financial Management VBC1 Sample Questions:
1. Which group does the Securities and Exchange Commission (SEC) work with closely to oversee broker- dealers?
A) The Federal Reserve
B) The Financial Industry Regulatory Authority (FINRA)
C) The Federal Deposit Insurance Corporation (FDIC)
D) The Commodity Futures Trading Commission (CFTC)
2. What is a drawback of using the Gordon growth model for estimating the cost of common equity?
A) It requires extensive market data analysis.
B) It is too complex for general use.
C) It applies only to companies with stable dividend policies.
D) It emphasizes short-term financial performance.
3. What does a high inventory turnover ratio indicate about a company's inventory management?
A) The company has efficient inventory management.
B) The company's inventory is obsolete.
C) The company has excess inventory.
D) The company has too little inventory.
4. Considering the fundamental relationships of the balance sheet, how can a company's assets increase without a corresponding rise in liabilities?
A) The company could finance the assets by restructuring its long-term debt.
B) The company could finance the assets by increasing owners' equity.
C) The company could increase the amount of depreciation it recognizes.
D) The company could increase the amount of cash it pays out as dividends.
5. What is a potential drawback of lowering the annual dividend payment?
A) It might lead to higher sales growth for the company.
B) It can lead to an immediate increase in the company's stock price.
C) It may cause the company's stockholders to react negatively.
D) It could possibly increase the company's net margin.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: C |




