WGU D775 Objective Assessment Exam
All Sections Questions and Answers
1. Accounting: Past-focused process that records and reports financial transactions for historical
accuracy, tax reporting, and compliance. Example: Summarizing last year's revenue for an annual
report.
2. Finance: Future-focused discipline managing assets/liabilities to plan growth, allocate resources,
and maximize value. Example: Deciding whether to invest surplus cash in new equipment or
marketing.
3. Personal Finance: Managing an individual's money, including budgeting, investing, saving,
debt repayment, and retirement planning. Example: Creating a monthly budget to save for a home.
4. Public Finance: Government management of taxation, spending, and public debt to stabilize
the economy and provide public services. Example: Issuing municipal bonds to build new schools.
5. Business Finance: Corporate decision-making on raising capital, investing in projects, and
managing risks. Example: A startup raising equity funding from venture capitalists to launch a new
product.
6. Common Stock: Equity ownership in a company with voting rights and variable dividends.
Last to be paid in liquidation. Example: Shares of Apple (AAPL).
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, 7. Preferred Stock: Equity ownership with fixed dividends and priority over common stock in
payouts, usually without voting rights.
8. Bonds: Debt securities where issuers borrow from investors, repaying principal plus interest.
9. Corporate Bonds: Higher yield and risk; issued by companies.
10. Municipal Bonds: Issued by local governments; often tax-free interest income.
11. Treasury Securities: U.S. government debt with low risk; includes T-bills, notes, and
bonds.
12. Options: Derivatives giving the right (not obligation) to buy/sell an asset at a set price
before expiration.
13. Futures: Contracts obligating buy/sell at a set price on a future date.
14. Mutual Funds: Pooled investments managed by professionals; priced once daily (NAV).
15. ETFs: Exchange-Traded Funds — trade like stocks; often track an index.
16. Hedge Funds: High-risk pooled investments seeking high returns; open to accredited
investors.
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All Sections Questions and Answers
1. Accounting: Past-focused process that records and reports financial transactions for historical
accuracy, tax reporting, and compliance. Example: Summarizing last year's revenue for an annual
report.
2. Finance: Future-focused discipline managing assets/liabilities to plan growth, allocate resources,
and maximize value. Example: Deciding whether to invest surplus cash in new equipment or
marketing.
3. Personal Finance: Managing an individual's money, including budgeting, investing, saving,
debt repayment, and retirement planning. Example: Creating a monthly budget to save for a home.
4. Public Finance: Government management of taxation, spending, and public debt to stabilize
the economy and provide public services. Example: Issuing municipal bonds to build new schools.
5. Business Finance: Corporate decision-making on raising capital, investing in projects, and
managing risks. Example: A startup raising equity funding from venture capitalists to launch a new
product.
6. Common Stock: Equity ownership in a company with voting rights and variable dividends.
Last to be paid in liquidation. Example: Shares of Apple (AAPL).
1/
8
, 7. Preferred Stock: Equity ownership with fixed dividends and priority over common stock in
payouts, usually without voting rights.
8. Bonds: Debt securities where issuers borrow from investors, repaying principal plus interest.
9. Corporate Bonds: Higher yield and risk; issued by companies.
10. Municipal Bonds: Issued by local governments; often tax-free interest income.
11. Treasury Securities: U.S. government debt with low risk; includes T-bills, notes, and
bonds.
12. Options: Derivatives giving the right (not obligation) to buy/sell an asset at a set price
before expiration.
13. Futures: Contracts obligating buy/sell at a set price on a future date.
14. Mutual Funds: Pooled investments managed by professionals; priced once daily (NAV).
15. ETFs: Exchange-Traded Funds — trade like stocks; often track an index.
16. Hedge Funds: High-risk pooled investments seeking high returns; open to accredited
investors.
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