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D076 Finance Skills for Managers with correct answers 2026

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Accountingvg Thevsystemvofvrecording,vreporting,vandvsummarizingvpastvfinancialvinformationvandvtransactions AccountsvReceivablevTurnoverv(ARvTurnover)v-vcorrectanswersvAnvactivityvratiovfoundvbyvcreditvsalesvdividedvbyvaccountsvreceivable. creditvsales/accountsvreceivable ActivityvRatiosvg Avcategoryvofvratiosvthatvmeasurevhowvwellvavcompanyvusesvitsvassetsvtovgeneratevsalesvorvcash,vs h owingvthevfirm'svoperationalvefficiencyvandvprofitability. AdditionalvFundsvNeededv(AFN)vg Anothervnamevforvthevdiscretionaryvfinancingvneededvorvexternalvfinancingvneeded.vItvrepresentsv thevadditionalvfinancingvneededvgivenvavfirm'svexpectationsvforvfuturevgrowth. AffirmativevCovenantsvg Avbondvcovenantvthatvdescribesvthingsvthevcompanyvpledgesvitselfvtovdovinvordervtovprotectvbondh olders. AgencyvCostsvg Costsvthatvarevincurredvwhenvmanagementvdoesvnotvactvinvthevbestvinterestvofvshareholders AgencyvProblemvg Whenvthevagentv(thevmanagement)vdoesvnotvactvinvthevbestvinterestvofvthevprincipalv(thevowners) AggressivevAssetsvgCompaniesvorvsecuritiesvwithvbetavgreatervthanv1. AnnualvPercentagevRatev(APR)vg Thevannualvinterestvratevthatvisvchargedvforvborrowingvmoneyvorvthatvisvearnedvthroughvinvestme nt. Annuityvg Avstreamvofvcashvflowsvofvanvequalvamountvpaidveveryvconsecutivevperiod. AnnuityvDuevg Avseriesvofvequalvpaymentsvmadevatvthevbeginningvofvconsecutivevperiods. AssetvpricingvgThevprocessvofvvaluingvassets. AuctionvMarketvg Avsecondaryvmarketvwithvavphysicalvlocationvandvwherevpricesvarevdeterminedvbyvinvestors'vwillin gnessvtovpay

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D076 Finance Skills for Managers
with correct answers 2026




Accountingvg
Thevsystemvofvrecording,vreporting,vandvsummarizingvpastvfinancialvinformationvandvtransactions



AccountsvReceivablevTurnoverv(ARvTurnover)v-vcorrect-
answersvAnvactivityvratiovfoundvbyvcreditvsalesvdividedvbyvaccountsvreceivable.

creditvsales/accountsvreceivable



ActivityvRatiosvg
Avcategoryvofvratiosvthatvmeasurevhowvwellvavcompanyvusesvitsvassetsvtovgeneratevsalesvorvcash,vs
h owingvthevfirm'svoperationalvefficiencyvandvprofitability.



AdditionalvFundsvNeededv(AFN)vg
Anothervnamevforvthevdiscretionaryvfinancingvneededvorvexternalvfinancingvneeded.vItvrepresentsv
thevadditionalvfinancingvneededvgivenvavfirm'svexpectationsvforvfuturevgrowth.



AffirmativevCovenantsvg

,Avbondvcovenantvthatvdescribesvthingsvthevcompanyvpledgesvitselfvtovdovinvordervtovprotectvbondh
olders.


AgencyvCostsvg
Costsvthatvarevincurredvwhenvmanagementvdoesvnotvactvinvthevbestvinterestvofvshareholders



AgencyvProblemvg
Whenvthevagentv(thevmanagement)vdoesvnotvactvinvthevbestvinterestvofvthevprincipalv(thevowners)



AggressivevAssetsvgCompaniesvorvsecuritiesvwithvbetavgreatervthanv1.



AnnualvPercentagevRatev(APR)vg
Thevannualvinterestvratevthatvisvchargedvforvborrowingvmoneyvorvthatvisvearnedvthroughvinvestme
nt.



Annuityvg
Avstreamvofvcashvflowsvofvanvequalvamountvpaidveveryvconsecutivevperiod.



AnnuityvDuevg
Avseriesvofvequalvpaymentsvmadevatvthevbeginningvofvconsecutivevperiods.



AssetvpricingvgThevprocessvofvvaluingvassets.



AuctionvMarketvg
Avsecondaryvmarketvwithvavphysicalvlocationvandvwherevpricesvarevdeterminedvbyvinvestors'vwillin
gnessvtovpay

, AveragevCollectionvPeriodv(ACP)v-vcorrect-
answersvanvactivityvratiovfoundvbyvthevnumbervofvdaysvinvavYearv(365)vdividedvbyvARvturnover.v
365/ARvturnover


BalancevSheetvForecastingvg
Usingvsalesvgrowthvandvthevprofitvforecastvtovconstructvavprovformavbalancevsheetvtovunderstandvt
hevfuturevimplicationsvofvthevsourcesvandvusesvofvfinances.



BanksvandvCreditvUnionsvg
Receivevdepositsvandvextendvloansvtovindividualsvandvbusinesses.



Benchmarkingvg
Thevprocessvofvcompletingvavfinancialvanalysisvtovcomparevavfirm'svfinancialvperformancevtovthatvo
fvothervsimilarvfirms.



Betavg
Avvariablevthatvdescribesvhowvthevpricevofvavsecurityvvariesvwithvthevmarket.



Bid-askvSpreadvg
Thevdifferencevbetweenvthevbidvandvaskvpricesvthatvcompensatevthevspecialistvforvthevriskvthatvhev
orvshevbearsvforvwillingnessvtovprovidevliquidity.



BoardvofvDirectorsvg
Avgroupvofvpeoplevwhovjointlyvsupervisevthevactivitiesvofvanvorganization.



BondvIndenturevg
Avlegalvcontractvthatvgovernsvthevrelationshipvbetweenvavfirmvandvitsvbondholders.



Bondholdersvg
Avpersonvwhovloansvavcorporationvmoneyvbyvbuyingvdebtvsecurities.

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