WGU D076 PA Exam Questions & Answers 100% Correct

In which way is accounting different from finance? -Accounting is backward looking, while finance is focused on the future. -Accounting is about budgeting, saving, and borrowing, while finance is about investing, forecasting, and lending. -Accounting is focused on allocating capital, while finance is focused on bringing in capital. -Accounting forecasts future performance, given the past, while finance records past performance. - ANSWER-Accounting is backward looking, while finance is focused on the future. What is the main question that both individuals and companies must consider when making financial decisions to reach a goal? -Will utility be maximized through this decision? -Will this decision require debt or equity financing? -Will the benefits of the action outweigh the costs? -Will this decrease the amount of cash available? - ANSWER-Will the benefits of the action outweigh the costs? A financial manager at a company is trying to determine whether to issue new stocks or new bonds to cover the costs of a project the company is doing the next year. Which main task in business finance is this situation an example of? -Managing interdepartmental loans -Making investment decisions -Managing working capital -Making financing decisions - ANSWER-Making financing decisions How can investing help a person reach personal financial goals? -It provides access to potential revenue or increases in value to help meet goals faster. -It provides a guaranteed future outcome in order to predictably meet financial goals. -It ensures money is placed in a safe, risk-free, and easily accessible financial asset. -It helps a person understand how money was spent previously in order to reliably predict future expenses. - ANSWER-It provides access to potential revenue or increases in value to help meet goals faster