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WGU – FINANCE SKILLS FOR MANAGERS D076 BUSINESS EXAM
QUESTIONS WITH DETAILED- VERIFIED ANSWERS- ALREADY GRADED
A+ || NEWEST EXAM
Business Administration / Finance programs
Exam Coverage: -
• Fundamentals of Finance:1–20
• Financial Institutions & Investments:21–35
• Financial Ratios & Analysis: 36–55
• Investment & Capital Budgeting: 56–70
• Ethics & Decision-Making: 71–85
• Advanced Concepts :86–100
• Working Capital & Cash Management :101–115
• Capital Budgeting & Investment Analysis:116–130
• Cost of Capital & Capital Structure :131–140
• Advanced Topics & Ethics:141-150
Section 1: Fundamentals of Finance (Questions 1–20)
1. What is the definition of finance?
A. The study of recording past financial transactions
B. Managing and allocating capital with the objective of investing,
forecasting, budgeting, saving, borrowing, and lending
C. The process of preparing financial statements
D. The study of supply and demand
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Correct Answer: B. Managing and allocating capital with the objective of
investing, forecasting, budgeting, saving, borrowing, and lending
Rationale: Finance is forward-looking and focuses on the future,
managing capital to achieve financial objectives.
2. What are the three main areas of finance?
A. Managerial accounting, financial accounting, and cost analysis
B. Financial institutions, investments, and financial management
C. Accounting principles, supply and demand, and marginal
productivity
D. Trade, production, and management theories
Correct Answer: B. Financial institutions, investments, and financial
management
Rationale: The three main areas of finance are financial institutions,
investments, and financial management.
3. What is the primary goal of the financial manager of a firm?
A. To minimize the costs of the firm
B. To maximize owner wealth
C. To maximize employee satisfaction
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D. To minimize taxes
Correct Answer: B. To maximize owner wealth
Rationale: The primary goal of the financial manager is to maximize
shareholder wealth.
4. Which of the following best describes the difference between finance
and accounting?
A. Finance is backward-looking; accounting is forward-looking
B. Finance is forward-looking; accounting is backward-looking
C. They are the same thing
D. Finance focuses on the past; accounting focuses on the future
Correct Answer: B. Finance is forward-looking; accounting is backward-
looking
Rationale: Finance focuses on the future, while accounting records past
transactions.
5. What is the primary role of corporate finance?
A. To manage employee benefits
B. To determine how best to maximize shareholder value
C. To prepare tax returns
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D. To manage supply chain operations
Correct Answer: B. To determine how best to maximize shareholder
value
Rationale: The primary role of corporate finance is to maximize
shareholder value.
6. Which of the following is a personal finance goal?
A. Maximizing shareholder wealth
B. Maximizing individual utility
C. Increasing market share
D. Reducing production costs
Correct Answer: B. Maximizing individual utility
Rationale: Personal finance aims to maximize individual utility
(satisfaction).
7. Which of the following is an organizational finance goal?
A. Should I rent or buy a home?
B. Should the firm purchase new equipment to cut production costs?
C. How much should I save for retirement?
D. Should I take out an auto loan?
WGU – FINANCE SKILLS FOR MANAGERS D076 BUSINESS EXAM
QUESTIONS WITH DETAILED- VERIFIED ANSWERS- ALREADY GRADED
A+ || NEWEST EXAM
Business Administration / Finance programs
Exam Coverage: -
• Fundamentals of Finance:1–20
• Financial Institutions & Investments:21–35
• Financial Ratios & Analysis: 36–55
• Investment & Capital Budgeting: 56–70
• Ethics & Decision-Making: 71–85
• Advanced Concepts :86–100
• Working Capital & Cash Management :101–115
• Capital Budgeting & Investment Analysis:116–130
• Cost of Capital & Capital Structure :131–140
• Advanced Topics & Ethics:141-150
Section 1: Fundamentals of Finance (Questions 1–20)
1. What is the definition of finance?
A. The study of recording past financial transactions
B. Managing and allocating capital with the objective of investing,
forecasting, budgeting, saving, borrowing, and lending
C. The process of preparing financial statements
D. The study of supply and demand
, Page 2 of 74
Correct Answer: B. Managing and allocating capital with the objective of
investing, forecasting, budgeting, saving, borrowing, and lending
Rationale: Finance is forward-looking and focuses on the future,
managing capital to achieve financial objectives.
2. What are the three main areas of finance?
A. Managerial accounting, financial accounting, and cost analysis
B. Financial institutions, investments, and financial management
C. Accounting principles, supply and demand, and marginal
productivity
D. Trade, production, and management theories
Correct Answer: B. Financial institutions, investments, and financial
management
Rationale: The three main areas of finance are financial institutions,
investments, and financial management.
3. What is the primary goal of the financial manager of a firm?
A. To minimize the costs of the firm
B. To maximize owner wealth
C. To maximize employee satisfaction
, Page 3 of 74
D. To minimize taxes
Correct Answer: B. To maximize owner wealth
Rationale: The primary goal of the financial manager is to maximize
shareholder wealth.
4. Which of the following best describes the difference between finance
and accounting?
A. Finance is backward-looking; accounting is forward-looking
B. Finance is forward-looking; accounting is backward-looking
C. They are the same thing
D. Finance focuses on the past; accounting focuses on the future
Correct Answer: B. Finance is forward-looking; accounting is backward-
looking
Rationale: Finance focuses on the future, while accounting records past
transactions.
5. What is the primary role of corporate finance?
A. To manage employee benefits
B. To determine how best to maximize shareholder value
C. To prepare tax returns
, Page 4 of 74
D. To manage supply chain operations
Correct Answer: B. To determine how best to maximize shareholder
value
Rationale: The primary role of corporate finance is to maximize
shareholder value.
6. Which of the following is a personal finance goal?
A. Maximizing shareholder wealth
B. Maximizing individual utility
C. Increasing market share
D. Reducing production costs
Correct Answer: B. Maximizing individual utility
Rationale: Personal finance aims to maximize individual utility
(satisfaction).
7. Which of the following is an organizational finance goal?
A. Should I rent or buy a home?
B. Should the firm purchase new equipment to cut production costs?
C. How much should I save for retirement?
D. Should I take out an auto loan?
