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WGU D076 Objective Assessment Finance Skills For Managers Actual Exam Newest 2025/2026 Complete 200 Questions And Correct Detailed Answers (Verified Answers) |Already Graded A+||Brand New Version!!
Why would creating a cash budget be useful for W&H if the firm needs a loan from the bank or another short-term lender? - ANSWER- Cash budgets increase the lender's trust in a firm by demonstrating the firm's ability to make profits and repay loans.
- Cash budgets are detailed plans that show creditors that a firm
will have enough cash from month to month to support its operations while staying within acceptable borrowing limits. A good cash budget allows creditors to feel secure in lending money to the firm.
How do the benefits of knowing the cash position for each period differ between businesses and individuals? - ANSWER- Knowing the cash position allows businesses to recognize when 1 / 4
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short-term loans are needed, while it allows individuals to analyze progress toward their personal financial goals.
What is the difference between tracking and monitoring cash flows? - ANSWER- Monitoring involves using your tracking record to evaluate cash flows against your target, identify patterns and changes in cash flows, and gauge when correction is needed. - By accessing cash flow records and knowing the remaining balance in the budget throughout the month and year, you will be able to monitor your budget in a way that will help you reach your financial goals.
What is discretionary financing needed (DFN)? - ANSWER- The additional financing needed given a firm's expected future growth -
You are a financial manager of a company. The marketing department has informed you that the projected sales growth for the upcoming year is 10%. As you conduct financial forecasting, you keep the long-term liabilities the same amount as the previous year and will discuss this account with the other managers later. What type of account is long-term liabilities? - 2 / 4
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ANSWER- Discretionary account - Discretionary accounts do not vary automatically with sales but are left to the discretion of management. In this scenario, you kept the long-term liabilities account the same.
What does the discretionary financing needed (DFN) tell us? - ANSWER- The total amount of funding that management will need to obtain through discretionary financing sources - DFN is the difference between the projected total assets and the projected total liabilities plus owners' equity. Any discrepancy between the sources and uses of finance is extra financing that management must obtain.
Company ABC would like to continue to grow, but in order to maintain control of all decisions and ownership, it wants to avoid issuing new stock. Which calculation will show the company's leadership the fastest that ABC can grow? - ANSWER- Sustainable growth rate -Sustainable growth rate is defined as the rate at which a firm can grow without issuing new equity. It implies that the firm's growth comes from the return on equity less any dividends.
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What is the major purpose of financial forecasting? - ANSWER- To inform a company how business decisions will impact future growth -Financial forecasting helps decision makers understand how actions taken today can impact the firm's future performance.
What is the name for a forecast of short-term events that helps a company understand if it has sufficient cash? - ANSWER- Cash budget - A cash budget is a short-term forecast of future events that helps a company understand whether it has sufficient cash for regular operations.
What is the purpose of a monthly cash budget? - ANSWER- To control cash inflows and outflows so you can balance income with expenditures and savings - Controlling cash inflows and outflows allows you to use your money in the most effective way possible.
In which situation would a firm need to borrow cash? - ANSWER- When the beginning cash balance plus the net cash is less than the minimum cash balance required for the month - This indicates to a firm that additional financing will be needed during the period to operate effectively.
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