WGU Financial Management VBC1 - Financial-Management Exam Practice Test

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?
Correct Answer: C Vote an answer
Synesthor is a company developing artificial intelligence (AI) to improve the searchability of medical research and make it easier for physicians to access the best knowledge for healthcare. As the company is setting its key objectives for the next period, it recognizes there are many stakeholders it serves.
If Synesthor focuses on what has traditionally been the primary goal of most companies, where will Synesthor center its efforts?
Correct Answer: A Vote an answer
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What does a beta of less than 1 signify in the capital asset pricing model (CAPM)?
Correct Answer: C Vote an answer
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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?
Correct Answer: C Vote an answer
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What is a function of the Financial Industry Regulatory Authority (FINRA)?
Correct Answer: A Vote an answer
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Which type of security has voting rights associated with it?
Correct Answer: A Vote an answer
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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?
Correct Answer: C Vote an answer
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How does a competitive sale of bonds work?
Correct Answer: B Vote an answer
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What does a high inventory turnover ratio indicate about a company's inventory management?
Correct Answer: C Vote an answer
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