D076 Finance Skills for Managers / Preassessment Quuestion and answers verified to
pass 2025/2026
1. In which way is accounting different from accounting is
finance? backward looking,
a. accounting is focused on allocating, capital, while finance is
while finance is focused on bringing in capital focused on the
b. accounting is backward looking, while future
finance is focused on the future
c. accounting forecasts future performance,
given the past, while finance records past
performance
d. accounting is about budgeting, saving, and
borrow-ing, while finance is about investing
forecasting, and lending
2. What is the main question that both individuals will the benefits of the ac-
and
companies must consider when making financial deci- tion outweigh
the costs
sions to reach a goal?
a. will the benefits of the action outweigh the costs
b. will this decrease the amount of cash available
c. will this decision require debt or equity financing
d. will utility be maximized through this decision
3. a financial manager at a company is trying to d. managing
deter-mine whether to issue new stocks or interdepart
new bonds to cover the costs of a project the mental
loans
company is doing the next year.
Which main task in business finance is this
situation an example of?
a. making investment decisions
b. managing working capital
c. making financing decisions
,making financing deci-sions
4.
,D076 Finance Skills for Managers / Preassessment
How can investing help a person reach personal finan- it provides access
to po-
cial goals? up to
a. it provides access to potential revenue or $250,000 to
increases in value to help meet goals faster promote
b. it helps a person understand how money was public
confidence
spent previously in order to reliably predict
future expenses
c. it provides a guaranteed future outcome in
order to predictably meet financial goals
d. it ensures money is placed in a safe, risk-
free, and easily accessible financial asset
5. A sign company is planning to have an initial
public offering (IPO). In which type of market will
its stock first be sold to the public?
a. secondary market
b. efficient market
c. primary market
d. money market
6. which type of economic indicator changes
after the economy changes and helps identify
trends in the long term?
a. coincident indicator
b. leading indicator
c. yield curve indicator
d. lagging indicator
7. how does an investment institution, such as a
mutual fund, facilitate the circulation of
money in the econo-my?
a. by insuring deposits in investment accounts
, tential revenue or increas-es in value to help meet goals faster
primary market
lagging indicator
by providing individuals and firms access to finan-cial markets to buy
or sell financial securities
pass 2025/2026
1. In which way is accounting different from accounting is
finance? backward looking,
a. accounting is focused on allocating, capital, while finance is
while finance is focused on bringing in capital focused on the
b. accounting is backward looking, while future
finance is focused on the future
c. accounting forecasts future performance,
given the past, while finance records past
performance
d. accounting is about budgeting, saving, and
borrow-ing, while finance is about investing
forecasting, and lending
2. What is the main question that both individuals will the benefits of the ac-
and
companies must consider when making financial deci- tion outweigh
the costs
sions to reach a goal?
a. will the benefits of the action outweigh the costs
b. will this decrease the amount of cash available
c. will this decision require debt or equity financing
d. will utility be maximized through this decision
3. a financial manager at a company is trying to d. managing
deter-mine whether to issue new stocks or interdepart
new bonds to cover the costs of a project the mental
loans
company is doing the next year.
Which main task in business finance is this
situation an example of?
a. making investment decisions
b. managing working capital
c. making financing decisions
,making financing deci-sions
4.
,D076 Finance Skills for Managers / Preassessment
How can investing help a person reach personal finan- it provides access
to po-
cial goals? up to
a. it provides access to potential revenue or $250,000 to
increases in value to help meet goals faster promote
b. it helps a person understand how money was public
confidence
spent previously in order to reliably predict
future expenses
c. it provides a guaranteed future outcome in
order to predictably meet financial goals
d. it ensures money is placed in a safe, risk-
free, and easily accessible financial asset
5. A sign company is planning to have an initial
public offering (IPO). In which type of market will
its stock first be sold to the public?
a. secondary market
b. efficient market
c. primary market
d. money market
6. which type of economic indicator changes
after the economy changes and helps identify
trends in the long term?
a. coincident indicator
b. leading indicator
c. yield curve indicator
d. lagging indicator
7. how does an investment institution, such as a
mutual fund, facilitate the circulation of
money in the econo-my?
a. by insuring deposits in investment accounts
, tential revenue or increas-es in value to help meet goals faster
primary market
lagging indicator
by providing individuals and firms access to finan-cial markets to buy
or sell financial securities
