D076 Study Guide 2024/2025 Exam
Questions Marking Scheme New Update
| A+ Rated
In which way is accounting different from finance?
Accounting is focused on allocating capital, while finance is focused on
bringing in capital.
Accounting forecasts future performance, given the past, while finance
records past performance.
Accounting is about budgeting, saving, and borrowing, while finance is
about investing, forecasting, and lending.
Accounting is backward looking, while finance is focused on the future. -
🧠ANSWER ✔✔Accounting is backward looking, while finance is focused
on the future.
What is the main question that both individuals and companies must
consider when making financial decisions to reach a goal?
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. 1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,Will this decision require debt or equity financing?
Will utility be maximized through this decision?
Will this decrease the amount of cash available?
Will the benefits of the action outweigh the costs? - 🧠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?
Managing working capital
Making investment decisions
Managing interdepartmental loans
Making financing decisions - 🧠ANSWER ✔✔Making financing decisions
How can investing help a person reach personal financial goals?
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. 2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,It provides access to potential revenue or increases in value to help meet
goals faster.
It ensures money is placed in a safe, risk-free, and easily accessible
financial asset.
It helps a person understand how money was spent previously in order to
reliably predict future expenses.
It provides a guaranteed future outcome in order to predictably meet
financial goals. - 🧠ANSWER ✔✔It provides access to potential revenue or
increases in value to help meet goals faster.
A sign company is planning to have an initial public offering (IPO). In which
type of market will its stock first be sold to the public?
Primary market
Money market
Efficient market
Secondary market - 🧠ANSWER ✔✔Primary market
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. 3
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, Which type of economic indicator changes after the economy changes and
helps identify trends in the long term?
Lagging indicator
Yield curve indicator
Leading indicator
Coincident indicator - 🧠ANSWER ✔✔Lagging indicator
How does an investment institution, such as a mutual fund, facilitate the
circulation of money in the economy?
By raising capital on a contractual basis, such as an insurance contract
By providing individuals and firms access to financial markets to buy or sell
financial securities
By accepting deposits of money, paying interest on deposits, and providing
loans to individuals and organizations
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. 4
PRIVACY STATEMENT. ALL RIGHTS RESERVED
Questions Marking Scheme New Update
| A+ Rated
In which way is accounting different from finance?
Accounting is focused on allocating capital, while finance is focused on
bringing in capital.
Accounting forecasts future performance, given the past, while finance
records past performance.
Accounting is about budgeting, saving, and borrowing, while finance is
about investing, forecasting, and lending.
Accounting is backward looking, while finance is focused on the future. -
🧠ANSWER ✔✔Accounting is backward looking, while finance is focused
on the future.
What is the main question that both individuals and companies must
consider when making financial decisions to reach a goal?
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. 1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,Will this decision require debt or equity financing?
Will utility be maximized through this decision?
Will this decrease the amount of cash available?
Will the benefits of the action outweigh the costs? - 🧠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?
Managing working capital
Making investment decisions
Managing interdepartmental loans
Making financing decisions - 🧠ANSWER ✔✔Making financing decisions
How can investing help a person reach personal financial goals?
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. 2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,It provides access to potential revenue or increases in value to help meet
goals faster.
It ensures money is placed in a safe, risk-free, and easily accessible
financial asset.
It helps a person understand how money was spent previously in order to
reliably predict future expenses.
It provides a guaranteed future outcome in order to predictably meet
financial goals. - 🧠ANSWER ✔✔It provides access to potential revenue or
increases in value to help meet goals faster.
A sign company is planning to have an initial public offering (IPO). In which
type of market will its stock first be sold to the public?
Primary market
Money market
Efficient market
Secondary market - 🧠ANSWER ✔✔Primary market
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. 3
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, Which type of economic indicator changes after the economy changes and
helps identify trends in the long term?
Lagging indicator
Yield curve indicator
Leading indicator
Coincident indicator - 🧠ANSWER ✔✔Lagging indicator
How does an investment institution, such as a mutual fund, facilitate the
circulation of money in the economy?
By raising capital on a contractual basis, such as an insurance contract
By providing individuals and firms access to financial markets to buy or sell
financial securities
By accepting deposits of money, paying interest on deposits, and providing
loans to individuals and organizations
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. 4
PRIVACY STATEMENT. ALL RIGHTS RESERVED
