WEALTH MANAGEMENT ACTUAL EXAM QUESTIONS WITH
ANSWERS 2025/2026 GRADED A+
GROSS DOMESTIC PRODUCT (GDP) - The final market value of the total output of all
goods and services produced within a country's geographic boundaries during a year's
time; expresses the dollar value of what is produced, not the volume of production
CAPITAL GAINS - Earnings from the appreciation of a stock investment
CAPITAL GAINS TAX - Tax on earnings from the appreciation of a stock investment
CASH - Currency and coins
COMPOUNDING - Earning interest upon interest
COUPON RATE - The interest rate for a particular bond
DEBT RATIO - A class of financial ratios that compares what a company owns to what it
owes; also called safety or financial leverage ratios
YIELD PERCENTAGE - Annual dividend divided by the current stock price; also called
rate of return and dividend yield
CAP-SIZE (OR MARKET CAPITALIZATION) - An indicator of the size of a public
company, as measured by the total dollar value of its stock; calculated by multiplying
share price by number of outstanding shares; companies are often categorized as
small-cap, mid-cap, or large-cap, though the specific dollar categories vary by source
Benchmark - Something that provides a basis for comparison or evaluation
Budget - An estimate of income and expense for a specific period of time
Continuous budget - See rolling budget
Expense - The money that a business spends
Fiscal year - The 12-month period chosen by a business as its operating year that may
or may not coincide with the calendar year
Income - The money received by resource owners and by producers for supplying
goods and services to consumers
Interrelated - Having an effect on or depending upon one another
Manufacturer - A type of producer that changes the shapes or forms of materials so that
they will be useful to consumers
, Master budget - The overall budget of a company, made up of information from
specialized budgets that are generated by individual departments
Retailer - A business that buys consumer goods or services and sells them to the
ultimate consumer
Rolling budget - Also called a continuous budget, a rolling budget replaces each
passing month with a new month added to the end of the budget, so that there is always
a year-long budget in place.
Sales forecast - A prediction of future sales over a specific period of time
Service business - A type of business that performs intangible activities that satisfy the
wants of consumers or industrial users
Specialized budget - A budget that reflects a particular department or activity of a
company; specialized budgets are interrelated, often relying on one another for
estimates of future activity
Variance - The difference between a budgeted amount and an actual amount
Zero-based budgeting - A method of budgeting that requires a manager to demonstrate
the need for every expense instead of relying on figures from a previous period; in
effect, each new budget begins at zero.
Detail-level goal - A small, short-term goal
Dynamic - Changing; changeable (able to be changed)
Goal setting - The ability to visualize, set, and focus on achieving objectives
Goals - Objectives or wants that you plan to fulfill
Grand-scale goal - A big, long-term goal
Large-scale goal - A medium-sized, long-term goal
Learning goal - A goal involving mastery of a new skill
Long-term goals - Objectives that will take a year or more to reach
Performance goal - A goal that is described by the level of performance reached or by a
task completed
Short-term goals - Objectives that take less than a year to achieve
ANSWERS 2025/2026 GRADED A+
GROSS DOMESTIC PRODUCT (GDP) - The final market value of the total output of all
goods and services produced within a country's geographic boundaries during a year's
time; expresses the dollar value of what is produced, not the volume of production
CAPITAL GAINS - Earnings from the appreciation of a stock investment
CAPITAL GAINS TAX - Tax on earnings from the appreciation of a stock investment
CASH - Currency and coins
COMPOUNDING - Earning interest upon interest
COUPON RATE - The interest rate for a particular bond
DEBT RATIO - A class of financial ratios that compares what a company owns to what it
owes; also called safety or financial leverage ratios
YIELD PERCENTAGE - Annual dividend divided by the current stock price; also called
rate of return and dividend yield
CAP-SIZE (OR MARKET CAPITALIZATION) - An indicator of the size of a public
company, as measured by the total dollar value of its stock; calculated by multiplying
share price by number of outstanding shares; companies are often categorized as
small-cap, mid-cap, or large-cap, though the specific dollar categories vary by source
Benchmark - Something that provides a basis for comparison or evaluation
Budget - An estimate of income and expense for a specific period of time
Continuous budget - See rolling budget
Expense - The money that a business spends
Fiscal year - The 12-month period chosen by a business as its operating year that may
or may not coincide with the calendar year
Income - The money received by resource owners and by producers for supplying
goods and services to consumers
Interrelated - Having an effect on or depending upon one another
Manufacturer - A type of producer that changes the shapes or forms of materials so that
they will be useful to consumers
, Master budget - The overall budget of a company, made up of information from
specialized budgets that are generated by individual departments
Retailer - A business that buys consumer goods or services and sells them to the
ultimate consumer
Rolling budget - Also called a continuous budget, a rolling budget replaces each
passing month with a new month added to the end of the budget, so that there is always
a year-long budget in place.
Sales forecast - A prediction of future sales over a specific period of time
Service business - A type of business that performs intangible activities that satisfy the
wants of consumers or industrial users
Specialized budget - A budget that reflects a particular department or activity of a
company; specialized budgets are interrelated, often relying on one another for
estimates of future activity
Variance - The difference between a budgeted amount and an actual amount
Zero-based budgeting - A method of budgeting that requires a manager to demonstrate
the need for every expense instead of relying on figures from a previous period; in
effect, each new budget begins at zero.
Detail-level goal - A small, short-term goal
Dynamic - Changing; changeable (able to be changed)
Goal setting - The ability to visualize, set, and focus on achieving objectives
Goals - Objectives or wants that you plan to fulfill
Grand-scale goal - A big, long-term goal
Large-scale goal - A medium-sized, long-term goal
Learning goal - A goal involving mastery of a new skill
Long-term goals - Objectives that will take a year or more to reach
Performance goal - A goal that is described by the level of performance reached or by a
task completed
Short-term goals - Objectives that take less than a year to achieve
