Try WGU : Financial-Management valid & accurate questions and answers

Last Updated: Oct 02, 2026

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WGU Financial-Management Exam Syllabus Topics:

SectionObjectives
Topic 1: Time Value of Money- Annuities and perpetuities
- Present and future value calculations
Topic 2: Capital Budgeting- Payback period analysis
- Internal rate of return (IRR)
- Net present value (NPV)
Topic 3: Financial Statement Analysis- Cash flow analysis
- Financial ratios
- Balance sheet and income statement interpretation
Topic 4: Risk and Return- Expected return
- Portfolio risk and diversification
Topic 5: Cost of Capital and Valuation- Bond and stock valuation basics
- Weighted average cost of capital (WACC)

WGU Financial Management VBC1 Sample Questions:

Question #1

In the capital asset pricing model (CAPM), what does a beta (#) greater than 1 signify for a portfolio?

  • A. The portfolio is expected to move in the opposite direction of the market.
  • B. The portfolio will always outperform the market.
  • C. The portfolio has less risk than the market.
  • D. The portfolio has more risk than the market.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #2

What costs are considered part of an asset's initial investment?

  • A. Delivery and installation
  • B. Market research
  • C. Discounted salvage value
  • D. Depreciation
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #3

What is the significance of Section 302 of the Sarbanes-Oxley Act (SOX)?

  • A. It allows companies to opt out of internal control reporting.
  • B. It requires management to certify the accuracy of financial reports.
  • C. It relaxes the requirements for internal control.
  • D. It requires the external auditor to take responsibility for financial accuracy.
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Correct Answer: B  🗳️

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Question #4

What is a drawback of using the Gordon growth model for estimating the cost of common equity?

  • A. It emphasizes short-term financial performance.
  • B. It applies only to companies with stable dividend policies.
  • C. It is too complex for general use.
  • D. It requires extensive market data analysis.
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Correct Answer: B  🗳️

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Question #5

In the statement of cash flows, what is the most commonly used method by financial analysts to calculate cash flows from operations (CFO)?

  • A. The direct method
  • B. The balance sheet method
  • C. The asset disposal method
  • D. The indirect method
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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