WGU Financial-Management : WGU Financial Management VBC1

  • Exam Code: Financial-Management
  • Exam Name: WGU Financial Management VBC1
  • Updated: Sep 14, 2026   Q&As: 86 Questions and Answers

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WGU Financial-Management Exam Syllabus Topics:
SectionObjectives
Topic 1: Financial Statement Analysis- Financial Statement Basics
  • 1. Balance Sheet
  • 2. Statement of Cash Flows
  • 3. Income Statement
- Ratio Analysis
  • 1. Profitability Ratios
  • 2. Market Value Ratios
  • 3. Debt Management Ratios
  • 4. Asset Management Ratios
  • 5. Liquidity Ratios
Topic 2: Financial Management Concepts- Financial Markets and Institutions
  • 1. Financial Markets
  • 2. Financial Institutions
  • 3. Interest Rate Levels
- Financial Environment
  • 1. Objectives of the Financial Manager
  • 2. Forms of Business Organization
  • 3. Agency Problem and Corporate Governance
Topic 3: Time Value of Money- Present and Future Value
  • 1. Annuities (Ordinary and Due)
  • 2. Future Value of a Lump Sum
  • 3. Present Value of a Lump Sum
- Bond and Stock Valuation
  • 1. Valuation of Common Stock
  • 2. Valuation of Preferred Stock
  • 3. Valuation of Bonds
Topic 4: Cost of Capital and Capital Structure- Cost of Capital
  • 1. Weighted Average Cost of Capital (WACC)
  • 2. Cost of Equity (CAPM, DCF)
  • 3. Cost of Debt
- Leverage and Capital Structure
  • 1. Financial Leverage
  • 2. Operating Leverage
  • 3. Optimal Capital Structure
Topic 5: Working Capital Management- Current Asset Management
  • 1. Receivables Management
  • 2. Inventory Management
  • 3. Cash Management
- Current Liabilities Management
  • 1. Trade Credit
  • 2. Short-term Financing
Topic 6: Capital Budgeting- Cash Flow Estimation
  • 1. Incremental Cash Flows
  • 2. Depreciation Methods
- Decision Criteria
  • 1. Internal Rate of Return (IRR)
  • 2. Modified IRR (MIRR)
  • 3. Net Present Value (NPV)
  • 4. Payback Period
WGU Financial Management VBC1 Sample Questions:
Question #1

Kretsmart anticipates its sales will grow by 10% each year for the next two years . Information from the company's current income statement is given below, and Cost of Goods Sold (COGS) is assumed to be a spontaneous account .

What would the company's projected gross margin for Year 2 ?

  • A. $76.00
  • B. $66.55
  • C. $59.45
  • D. $71.25
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #2

What does a beta higher than 1.0 for a stock indicate about its systematic risk?

  • A. The stock is less risky than the market.
  • B. The stock is more volatile than the market.
  • C. The stock is more predictable than the market.
  • D. The stock is less volatile than the market.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #3

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

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

Correct Answer: A  🗳️

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Question #4

A building owner is undertaking a weatherization project. The owner will make a one-time investment of
$410,000 for caulking, sunshades, and smart thermostats. Annual utility savings are projected to be:
* Year 1: $125,000
* Year 2: $125,000
* Year 3: $140,000
* Year 4: $140,000
* Year 5: $160,000
What is the payback period , in years? (Round up)

  • A. 5
  • B. 2
  • C. 4
  • D. 3
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #5

In the statement of cash flows, how should an increase in accounts receivable be treated when calculating cash collected from customers?

  • A. It should be added to the cost of goods sold.
  • B. It should be subtracted from revenue.
  • C. It should be added to revenue.
  • D. It should be subtracted from cost of goods sold.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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