Finance Skills for Managers - D076 practice
test questions correctly defined a+
guaranteed.
In which way is accounting different from finance? - n
ANS✔
Accounting is backward looking, while finance is focused on the future.
Qs
What is the main question that both individuals and companies must consider when
making financial decisions to reach a goal? - n
ANS✔
Will the benefits of the action outweigh the costs?
Qs
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? - n
ANS✔
Making financing decisions
Qs
How can investing help a person reach personal financial goals? - n
ANS✔
It provides access to potential revenue or increases in value to help meet goals
faster.
Qs
, 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? - n
ANS✔
Primary market
Qs
Which type of economic indicator changes after the economy changes and helps
identify trends in the long term? - n
ANS✔
Lagging indicator
Qs
How does an investment institution, such as a mutual fund, facilitate the circulation
of money in the economy? - n
ANS✔
By providing individuals and firms access to financial markets to buy or sell financial
securities
Qs
Which type of economic indicator is used by governments and policymakers to
implement or alter policies in an effort to avoid or minimize the effects of an
economic downturn? - n
ANS✔
Leading indicator
Qs
Suppose an individual does not eat chocolate because eating chocolate goes
against his personal beliefs. Which type of standard is this? - n
ANS✔
Moral
Qs
test questions correctly defined a+
guaranteed.
In which way is accounting different from finance? - n
ANS✔
Accounting is backward looking, while finance is focused on the future.
Qs
What is the main question that both individuals and companies must consider when
making financial decisions to reach a goal? - n
ANS✔
Will the benefits of the action outweigh the costs?
Qs
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? - n
ANS✔
Making financing decisions
Qs
How can investing help a person reach personal financial goals? - n
ANS✔
It provides access to potential revenue or increases in value to help meet goals
faster.
Qs
, 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? - n
ANS✔
Primary market
Qs
Which type of economic indicator changes after the economy changes and helps
identify trends in the long term? - n
ANS✔
Lagging indicator
Qs
How does an investment institution, such as a mutual fund, facilitate the circulation
of money in the economy? - n
ANS✔
By providing individuals and firms access to financial markets to buy or sell financial
securities
Qs
Which type of economic indicator is used by governments and policymakers to
implement or alter policies in an effort to avoid or minimize the effects of an
economic downturn? - n
ANS✔
Leading indicator
Qs
Suppose an individual does not eat chocolate because eating chocolate goes
against his personal beliefs. Which type of standard is this? - n
ANS✔
Moral
Qs
