D076 WGU TEST QUESTIONS & ANSWERS
Lagging indicator
Happen afterwards. Indicators that something happened, such as unemployment
Leading indicator
Happen before. Indicators that something may happen. Such as Stock prices or
surveys.
Morals
Personally accepted beliefs
Ethics
Universally accepted.
Why can compounding interest be a good tool but also a significant detriment?
Compounding interest can be a good tool because it allows a lender to gain interest on
interest, but it is a detriment because it causes a borrower to pay interest on interest.
How is inflation calculated?
Inflation is calculated by determining the rate at which the average price level of
particular goods and services increases over a period of time in an economy.
Which type of ratio should be used to examine the cost efficiency of a firm's production?
Profitability
Which type of expense is a magazine subscription?
Variable expense
A company is developing a financial forecast for the next year. The company plans to
implement a new factory that will increase production and resulting sales by 20%.
Since the company's assets are increasing significantly, what else must increase?
Financing
Lagging indicator
Happen afterwards. Indicators that something happened, such as unemployment
Leading indicator
Happen before. Indicators that something may happen. Such as Stock prices or
surveys.
Morals
Personally accepted beliefs
Ethics
Universally accepted.
Why can compounding interest be a good tool but also a significant detriment?
Compounding interest can be a good tool because it allows a lender to gain interest on
interest, but it is a detriment because it causes a borrower to pay interest on interest.
How is inflation calculated?
Inflation is calculated by determining the rate at which the average price level of
particular goods and services increases over a period of time in an economy.
Which type of ratio should be used to examine the cost efficiency of a firm's production?
Profitability
Which type of expense is a magazine subscription?
Variable expense
A company is developing a financial forecast for the next year. The company plans to
implement a new factory that will increase production and resulting sales by 20%.
Since the company's assets are increasing significantly, what else must increase?
Financing
