WGU Financial Management VBC1 : Financial-Management

  • Exam Code: Financial-Management
  • Exam Name: WGU Financial Management VBC1
  • Updated: Oct 12, 2026
  • Q & A: 86 Questions and Answers

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About WGU Financial Management VBC1 : Financial-Management Exam

WGU Financial Management VBC1 pdf study material

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Free Download Financial-Management Exam PDF Torrent

WGU Financial-Management Exam Syllabus Topics:

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

WGU Financial Management VBC1 Sample Questions:

Question #1

What are opportunity costs in the context of inventory management?

  • A. Costs of not investing capital tied up in inventory elsewhere
  • B. Costs incurred from the physical space used to store inventory
  • C. Costs for the labor involved in managing inventory levels
  • D. Costs related to the insurance of inventory against loss or damage
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #2

What does a high inventory turnover ratio indicate about a company's inventory management?

  • A. The company's inventory is obsolete.
  • B. The company has excess inventory.
  • C. The company has efficient inventory management.
  • D. The company has too little inventory.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #3

Why would a company choose to maintain a certain level of cash as a reserve balance?

  • A. To safeguard against unforeseen expenses and maintain liquidity
  • B. To pay for major capital expenditures without external financing
  • C. To cover the cost of repurchasing shares from the stock market
  • D. To distribute as dividends at the end of the fiscal year
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #4

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 inflow of $4,000.
  • B. The firm's net cash flows from financing were an outflow of $1,000.
  • C. The firm's net cash flows from financing were an outflow of $3,000.
  • D. The firm's net cash flows from financing were an inflow of $5,000.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #5

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

Correct Answer: B  🗳️

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