FNAN 522 Exam (MidTerm Terms) Prep
Questions and Comprehensive Answers
2026-2027.
Investment
(Module 1 Section 1) - Answer A placement of capital in expectation of deriving income or
profit from its use
Asset
(Module 1 Section 1) - Answer Something or someone of any value; any portion of one's
property or effects so considered
Debtor
(Module 1 Section 1) - Answer A person or firm that owes money, one in debt, or one who
owes a debt
Return
(Module 1 Section 1) - Answer Gain or loss from an investment
Shareholder
(Module 1 Section 1) - Answer One who owns shares of stock
Liability
(Module 1 Section 1) - Answer An obligation, debt or responsibility owed to someone
Expected Return
(Module 1 Section 1) - Answer Considering the magnitude and likelihood of exogenous events,
the yield that an investor predicts s/he will earn on average
Financing
(Module 1 Section 1) - Answer A transaction that provides funds for a business
Equity
(Module 1 Section 1) - Answer Ownership, especially in terms of net monetary value, of a
business
, Finance
(Module 1 Section 1) - Answer To provide or obtain funding for a transaction or undertaking;
to back; to support
Capital
(Module 1 Section 1) - Answer Money and wealth; the means to acquire goods and services,
especially in a non-barter system
Leverage
(Module 1 Section 1) - Answer The use of borrowed funds with a contractually determined
return to increase the ability of a business to invest and earn an expected higher return (usually
at high risk)
Valuation
(Module 1 Section 2) - Answer The process of estimating the market value of a financial asset
or liability
Fundamental Analysis
(Module 1 Section 2) - Answer An analysis of a business with the goal of financial projections
in terms of income statement, financial statements and health, management and competitive
advantages, and competitors and markets
Financial Statement
(Module 1 Section 2) - Answer A formal record of all relevant financial information of a
business, person, or other entity, presented in a structured and standardized manner to allow
easy understanding
Market Value
(Module 1 Section 2) - Answer The total value of the company as traded in the market.
Calculated by multiplying the number of shares outstanding by the price per share
Principal
(Module 1 Section 2) - Answer One who directs another (the agent) to act on one's behalf
Stakeholder
(Module 1 Section 2) - Answer A person or organization with a legitimate interest in a given
situation, action or enterprise
Questions and Comprehensive Answers
2026-2027.
Investment
(Module 1 Section 1) - Answer A placement of capital in expectation of deriving income or
profit from its use
Asset
(Module 1 Section 1) - Answer Something or someone of any value; any portion of one's
property or effects so considered
Debtor
(Module 1 Section 1) - Answer A person or firm that owes money, one in debt, or one who
owes a debt
Return
(Module 1 Section 1) - Answer Gain or loss from an investment
Shareholder
(Module 1 Section 1) - Answer One who owns shares of stock
Liability
(Module 1 Section 1) - Answer An obligation, debt or responsibility owed to someone
Expected Return
(Module 1 Section 1) - Answer Considering the magnitude and likelihood of exogenous events,
the yield that an investor predicts s/he will earn on average
Financing
(Module 1 Section 1) - Answer A transaction that provides funds for a business
Equity
(Module 1 Section 1) - Answer Ownership, especially in terms of net monetary value, of a
business
, Finance
(Module 1 Section 1) - Answer To provide or obtain funding for a transaction or undertaking;
to back; to support
Capital
(Module 1 Section 1) - Answer Money and wealth; the means to acquire goods and services,
especially in a non-barter system
Leverage
(Module 1 Section 1) - Answer The use of borrowed funds with a contractually determined
return to increase the ability of a business to invest and earn an expected higher return (usually
at high risk)
Valuation
(Module 1 Section 2) - Answer The process of estimating the market value of a financial asset
or liability
Fundamental Analysis
(Module 1 Section 2) - Answer An analysis of a business with the goal of financial projections
in terms of income statement, financial statements and health, management and competitive
advantages, and competitors and markets
Financial Statement
(Module 1 Section 2) - Answer A formal record of all relevant financial information of a
business, person, or other entity, presented in a structured and standardized manner to allow
easy understanding
Market Value
(Module 1 Section 2) - Answer The total value of the company as traded in the market.
Calculated by multiplying the number of shares outstanding by the price per share
Principal
(Module 1 Section 2) - Answer One who directs another (the agent) to act on one's behalf
Stakeholder
(Module 1 Section 2) - Answer A person or organization with a legitimate interest in a given
situation, action or enterprise
