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Last Updated: Sep 19, 2026

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WGU Financial-Management Exam Syllabus Topics:

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

WGU Financial Management VBC1 Sample Questions:

Question #1

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. 2.50
  • B. 1.25
  • C. 0.50
  • D. 2.33
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Correct Answer: B  🗳️

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Question #2

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?

  • A. The firm's net cash flows from financing were an outflow of $3,000.
  • B. The firm's net cash flows from financing were an inflow of $5,000.
  • C. The firm's net cash flows from financing were an outflow of $1,000.
  • D. The firm's net cash flows from financing were an inflow of $4,000.
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Correct Answer: C  🗳️

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Question #3

A financial analyst is trying to understand the return that shareholders of a stock receive through dividend payments. The analyst is given the following information:
Company Information-Previous Year
* Revenue: $500,000
* Net Income: $50,000
* Change in Retained Earnings: $30,000
* Change in Total Assets: $40,000
What is the amount of dividends paid during the previous year to shareholders?

  • A. $40,000
  • B. $30,000
  • C. $50,000
  • D. $20,000
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Correct Answer: D  🗳️

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Question #4

What is the difference between market orders and limit orders?

  • A. Market orders execute at a fixed price, while limit orders fluctuate in price.
  • B. Market orders are price-sensitive, while limit orders are time-sensitive.
  • C. Market orders execute at the current price, while limit orders execute at a specified price.
  • D. Market orders are used for selling stocks, while limit orders are used for buying stocks.
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Correct Answer: C  🗳️

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Question #5

What is the purpose of covenants in a bond indenture?

  • A. To determine the par value of the bond and the current price at which the bond will sell today
  • B. To outline the actions the issuer commits to take or avoid to protect bondholders' interests
  • C. To set the interest rate of the bond
  • D. To calculate the coupon payments
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Correct Answer: B  🗳️

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