D076 PA Exam All Questions With Actual Solutions

In which way is accounting different from finance? Accounting forecasts future performance, given the past, while finance records past performance. Accounting is backward looking, while finance is focused on the future. Accounting is focused on allocating capital, while finance is focused on bringing in capital. Accounting is about budgeting, saving, and borrowing, while finance is about investing, forecasting, and lending. - ANSWER-Accounting forecasts future performance, given the past, while finance records past performance. What is the main question that both individuals and companies must consider when making financial decisions to reach a goal? Will this decision require debt or equity financing? Will this decrease the amount of cash available? Will the benefits of the action outweigh the costs? Will utility be maximized through this decision? - ANSWER-Will the benefits of the action outweigh the costs? A financial manager at a company is trying to determine whether to issue new stocks or new bonds to cover the costs of a project the company is doing the next year. Which main task in business finance is this situation an example of? Making financing decisions Managing working capital Making investment decisions Managing interdepartmental loans - ANSWER-Making financing decisions How can investing help a person reach personal financial goals?