WGU D076 OA FINAL PAPER 2026 EXAM Q&A
STUDY SHEET GRADED A+
● What is the primary difference between finance and accounting?
Answer: Finance focuses on the future, while accounting is generally
backward-looking.
● Which subspecialty of finance primarily involves deciding which
assets will create more wealth and earn positive returns? Answer:
Investments
● An area of finance that deals with investment allocation and asset
pricing. Answer: Investments
● An area of finance that involves organizations that accept deposits,
offer investment products, loan money, or broker financial transactions.
Answer: Financial Institutions
● An area of finance that involves activities used to increase shareholder
wealth. Answer: Corporate Finance.
● What is the primary aim of personal finance goals? Answer: To
maximize satisfaction from products purchased and services obtained
,● What should be the main question a firm asks when considering any
investment decision? Answer: Do the benefits of this investment
outweigh the costs?
● What is the primary goal of the financial manager of a firm? Answer:
To maximize owner wealth
● What are three main tasks that a financial manager of a firm does in
order to achieve the goal of the firm, which is to maximize shareholder
wealth? Answer: making investment decisions,
making financing decisions, and
managing working capital.
● Who is the highest ranking officer in corporate finance? Answer:
CFO, Chief Financial Officer
● What does the CFO do? Answer: The CFO is responsible for all the
financial decisions made by the firm. He or she serves as the CEO's
right-hand person in all money matters and oversees the financial
analysis and decision-making of the firm.
● Which task does a financial manager perform when assessing the costs
and benefits of potential projects? Answer: Making investment
decisions
,● Which financial career focuses on investing capital into firms whose
shares are not currently sold on any public stock exchange? Answer:
Private equity
● Which task does a financial manager perform when choosing to obtain
a loan to purchase a piece of equipment for a new project? Answer:
Making financing decisions
● What are the three most important types of securities? Answer:
Treasury, Corporate, and Stocks
● Why does the SEC oversee Financial Markets? Answer: To protect
Investors
● What are the purposes of financial markets? Answer: To provide
liquidity and determine prices
● In which financial market are securities such as stocks and bonds are
traded after their initial issuance? Answer: Secondary market
● What kind of market primarily allows institutions to borrow and lend
in the short term? Answer: Money market
, ● A local start-up company just hit its five-year anniversary and is
planning an initial public offering sometime this year. In order to issue
public stock, which market will the company use? Answer: Primary
market
● What is a depository institution? Answer: An institution that accepts
and pays interest on deposits of money, as well as extends loans
● What is the primary role of financial institutions? Answer: To conduct
financial transactions such as investments, loans, and deposits
● A large corporation is looking to merge with another large corporation.
Which financial institution can help them do this? Answer: Investment
bank
● Which type of financial institution deals mainly with providing for
retirement through employers? Answer: Pension fund
● How do insurance companies pay policyholders when a claim is
made? Answer: They use returns from stocks and bonds.
● Which financial institution ensures that a nation's economy remains
healthy by controlling the amount of money circulating in the economy?
Answer: Central bank
STUDY SHEET GRADED A+
● What is the primary difference between finance and accounting?
Answer: Finance focuses on the future, while accounting is generally
backward-looking.
● Which subspecialty of finance primarily involves deciding which
assets will create more wealth and earn positive returns? Answer:
Investments
● An area of finance that deals with investment allocation and asset
pricing. Answer: Investments
● An area of finance that involves organizations that accept deposits,
offer investment products, loan money, or broker financial transactions.
Answer: Financial Institutions
● An area of finance that involves activities used to increase shareholder
wealth. Answer: Corporate Finance.
● What is the primary aim of personal finance goals? Answer: To
maximize satisfaction from products purchased and services obtained
,● What should be the main question a firm asks when considering any
investment decision? Answer: Do the benefits of this investment
outweigh the costs?
● What is the primary goal of the financial manager of a firm? Answer:
To maximize owner wealth
● What are three main tasks that a financial manager of a firm does in
order to achieve the goal of the firm, which is to maximize shareholder
wealth? Answer: making investment decisions,
making financing decisions, and
managing working capital.
● Who is the highest ranking officer in corporate finance? Answer:
CFO, Chief Financial Officer
● What does the CFO do? Answer: The CFO is responsible for all the
financial decisions made by the firm. He or she serves as the CEO's
right-hand person in all money matters and oversees the financial
analysis and decision-making of the firm.
● Which task does a financial manager perform when assessing the costs
and benefits of potential projects? Answer: Making investment
decisions
,● Which financial career focuses on investing capital into firms whose
shares are not currently sold on any public stock exchange? Answer:
Private equity
● Which task does a financial manager perform when choosing to obtain
a loan to purchase a piece of equipment for a new project? Answer:
Making financing decisions
● What are the three most important types of securities? Answer:
Treasury, Corporate, and Stocks
● Why does the SEC oversee Financial Markets? Answer: To protect
Investors
● What are the purposes of financial markets? Answer: To provide
liquidity and determine prices
● In which financial market are securities such as stocks and bonds are
traded after their initial issuance? Answer: Secondary market
● What kind of market primarily allows institutions to borrow and lend
in the short term? Answer: Money market
, ● A local start-up company just hit its five-year anniversary and is
planning an initial public offering sometime this year. In order to issue
public stock, which market will the company use? Answer: Primary
market
● What is a depository institution? Answer: An institution that accepts
and pays interest on deposits of money, as well as extends loans
● What is the primary role of financial institutions? Answer: To conduct
financial transactions such as investments, loans, and deposits
● A large corporation is looking to merge with another large corporation.
Which financial institution can help them do this? Answer: Investment
bank
● Which type of financial institution deals mainly with providing for
retirement through employers? Answer: Pension fund
● How do insurance companies pay policyholders when a claim is
made? Answer: They use returns from stocks and bonds.
● Which financial institution ensures that a nation's economy remains
healthy by controlling the amount of money circulating in the economy?
Answer: Central bank
