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WGU Financial-Management Exam Syllabus Topics:

SectionObjectives
Topic 1: Working Capital Management- Current Asset Management
  • 1. Cash Management
  • 2. Inventory Management
  • 3. Receivables Management
- Current Liabilities Management
  • 1. Short-term Financing
  • 2. Trade Credit
Topic 2: Financial Management Concepts- Financial Markets and Institutions
  • 1. Financial Institutions
  • 2. Interest Rate Levels
  • 3. Financial Markets
- Financial Environment
  • 1. Agency Problem and Corporate Governance
  • 2. Objectives of the Financial Manager
  • 3. Forms of Business Organization
Topic 3: Time Value of Money- Present and Future Value
  • 1. Future Value of a Lump Sum
  • 2. Annuities (Ordinary and Due)
  • 3. Present Value of a Lump Sum
- Bond and Stock Valuation
  • 1. Valuation of Bonds
  • 2. Valuation of Preferred Stock
  • 3. Valuation of Common Stock
Topic 4: Financial Statement Analysis- Financial Statement Basics
  • 1. Balance Sheet
  • 2. Income Statement
  • 3. Statement of Cash Flows
- Ratio Analysis
  • 1. Liquidity Ratios
  • 2. Profitability Ratios
  • 3. Market Value Ratios
  • 4. Debt Management Ratios
  • 5. Asset Management Ratios
Topic 5: Cost of Capital and Capital Structure- Cost of Capital
  • 1. Cost of Debt
  • 2. Cost of Equity (CAPM, DCF)
  • 3. Weighted Average Cost of Capital (WACC)
- Leverage and Capital Structure
  • 1. Operating Leverage
  • 2. Financial Leverage
  • 3. Optimal Capital Structure
Topic 6: Capital Budgeting- Decision Criteria
  • 1. Internal Rate of Return (IRR)
  • 2. Payback Period
  • 3. Modified IRR (MIRR)
  • 4. Net Present Value (NPV)
- Cash Flow Estimation
  • 1. Depreciation Methods
  • 2. Incremental Cash Flows

WGU Financial Management VBC1 Sample Questions:

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?

  • A. Focusing solely on customer satisfaction
  • B. Maximizing shareholder value
  • C. Increasing employee satisfaction
  • D. Expanding the company globally
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Use Whole Pine Inc.'s financial statements for 20X3 below to answer the following question.
What is Whole Pine Inc.'s total asset turnover for 20X3?

  • A. 0.50
  • B. 1.25
  • C. 2.33
  • D. 2.50
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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What is the goal of just-in-time (JIT) inventory management?

  • A. To increase the quantity of on-hand inventory
  • B. To minimize holding costs by reducing inventory levels
  • C. To maximize the storage space utilized
  • D. To extend the cash conversion cycle
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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How does the global bond market impact the strategies of multinational corporations?

  • A. By offering diverse financing options beyond domestic markets
  • B. By ensuring fixed interest rates on all international loans
  • C. By enhancing incentives to raise capital domestically
  • D. By reducing the need for currency risk management
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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What is the bid-ask spread?

  • A. The range between the highest and lowest stock prices in a day
  • B. The commission charged by brokers for each transaction
  • C. The difference between the price at which a specialist buys and sells a stock
  • D. The current market price of a stock less its initial public offering listing price
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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