WGU D076 ACTUAL TEST BANK MARKING
SCHEME 2026 ACCURATE SOLVED
QUESTIONS
⩥ Accounts Receivable Turnover (AR Turnover). Answer: An activity
ratio found by credit sales divided by accounts receivable.
credit sales/accounts receivable
⩥ Activity Ratios. Answer: A category of ratios that measure how well a
company uses its assets to generate sales or cash, showing the firm's
operational efficiency and profitability.
⩥ Additional Funds Needed (AFN). Answer: Another name for the
discretionary financing needed or external financing needed. It
represents the additional financing needed given a firm's expectations
for future growth.
⩥ Affirmative Covenants. Answer: A bond covenant that describes
things the company pledges itself to do in order to protect bondholders.
⩥ Agency Costs. Answer: Costs that are incurred when management
does not act in the best interest of shareholders
,⩥ Agency Problem. Answer: When the agent (the management) does not
act in the best interest of the principal (the owners)
⩥ Aggressive Assets. Answer: Companies or securities with beta greater
than 1.
⩥ Annual Percentage Rate (APR). Answer: The annual interest rate that
is charged for borrowing money or that is earned through investment.
⩥ Annuity. Answer: A stream of cash flows of an equal amount paid
every consecutive period.
⩥ Annuity Due. Answer: A series of equal payments made at the
beginning of consecutive periods.
⩥ Asset pricing. Answer: The process of valuing assets.
⩥ Auction Market. Answer: A secondary market with a physical location
and where prices are determined by investors' willingness to pay
⩥ Average Collection Period (ACP). Answer: an activity ratio found by
the number of days in a Year (365) divided by AR turnover.
365/AR turnover
, ⩥ Balance Sheet Forecasting. Answer: Using sales growth and the profit
forecast to construct a pro forma balance sheet to understand the future
implications of the sources and uses of finances.
⩥ Banks and Credit Unions. Answer: Receive deposits and extend loans
to individuals and businesses.
⩥ Benchmarking. Answer: The process of completing a financial
analysis to compare a firm's financial performance to that of other
similar firms.
⩥ Beta. Answer: A variable that describes how the price of a security
varies with the market.
⩥ Bid-ask Spread. Answer: The difference between the bid and ask
prices that compensate the specialist for the risk that he or she bears for
willingness to provide liquidity.
⩥ Board of Directors. Answer: A group of people who jointly supervise
the activities of an organization.
⩥ Bond Indenture. Answer: A legal contract that governs the relationship
between a firm and its bondholders.
SCHEME 2026 ACCURATE SOLVED
QUESTIONS
⩥ Accounts Receivable Turnover (AR Turnover). Answer: An activity
ratio found by credit sales divided by accounts receivable.
credit sales/accounts receivable
⩥ Activity Ratios. Answer: A category of ratios that measure how well a
company uses its assets to generate sales or cash, showing the firm's
operational efficiency and profitability.
⩥ Additional Funds Needed (AFN). Answer: Another name for the
discretionary financing needed or external financing needed. It
represents the additional financing needed given a firm's expectations
for future growth.
⩥ Affirmative Covenants. Answer: A bond covenant that describes
things the company pledges itself to do in order to protect bondholders.
⩥ Agency Costs. Answer: Costs that are incurred when management
does not act in the best interest of shareholders
,⩥ Agency Problem. Answer: When the agent (the management) does not
act in the best interest of the principal (the owners)
⩥ Aggressive Assets. Answer: Companies or securities with beta greater
than 1.
⩥ Annual Percentage Rate (APR). Answer: The annual interest rate that
is charged for borrowing money or that is earned through investment.
⩥ Annuity. Answer: A stream of cash flows of an equal amount paid
every consecutive period.
⩥ Annuity Due. Answer: A series of equal payments made at the
beginning of consecutive periods.
⩥ Asset pricing. Answer: The process of valuing assets.
⩥ Auction Market. Answer: A secondary market with a physical location
and where prices are determined by investors' willingness to pay
⩥ Average Collection Period (ACP). Answer: an activity ratio found by
the number of days in a Year (365) divided by AR turnover.
365/AR turnover
, ⩥ Balance Sheet Forecasting. Answer: Using sales growth and the profit
forecast to construct a pro forma balance sheet to understand the future
implications of the sources and uses of finances.
⩥ Banks and Credit Unions. Answer: Receive deposits and extend loans
to individuals and businesses.
⩥ Benchmarking. Answer: The process of completing a financial
analysis to compare a firm's financial performance to that of other
similar firms.
⩥ Beta. Answer: A variable that describes how the price of a security
varies with the market.
⩥ Bid-ask Spread. Answer: The difference between the bid and ask
prices that compensate the specialist for the risk that he or she bears for
willingness to provide liquidity.
⩥ Board of Directors. Answer: A group of people who jointly supervise
the activities of an organization.
⩥ Bond Indenture. Answer: A legal contract that governs the relationship
between a firm and its bondholders.
