WGU D076 PRE-ASSESSMENT EXAM
QUESTIONS AND ANSWERS 100% PASS
2026 UPDATE.
In which way is accounting different from finance? - ANS 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? - ANS 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? - ANS Making financing
decision
How can investing help a person reach personal financial goals? - ANS 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? - ANS Primary market
Which type of economic indicator changes after the economy changes and helps identify trends
in the long term? - ANS Lagging indicator
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, How does an investment institution, such as mutual fund, facilitate the circulation of money in
the economy? - ANS By providing individuals and firms access to financial markets to buy or
sell financial securities
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? -
ANS Leading indicator
Suppose an individual does not eat chocolate because eating chocolate goes against his
personal beliefs. Which type of standard is this? - ANS Moral
Which action is based upon moral standards? - ANS Although there is no company policy
regarding it, a financial manager chooses not to accept gifts from the company's clients to
ensure that she does not create a conflict of interest
What should a potential bondholder (lender) do to prevent a company (borrower) from taking
on risky projects? - ANS Set strict covenants that the company cannot uphold if it chooses a
risky project
What is the term for an individual's beliefs concerning what is and is not acceptable to
personally do? - ANS Morals
Which factor contributes to the inflation of the prices of goods and services over time? -
ANS Increase in demand for goods and services
Why can compounding interest be a good tool but also a significant detriment? -
ANS Compounding interest can be a good tool because it allows a lender to gain interest on
interest, but it is a detriment because it causes a borrower to pay interest on interest
Which component of the required rate of return takes into account the loss of potential gain
from other alternatives? - ANS Opportunity cost
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS 100% PASS
2026 UPDATE.
In which way is accounting different from finance? - ANS 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? - ANS 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? - ANS Making financing
decision
How can investing help a person reach personal financial goals? - ANS 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? - ANS Primary market
Which type of economic indicator changes after the economy changes and helps identify trends
in the long term? - ANS Lagging indicator
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, How does an investment institution, such as mutual fund, facilitate the circulation of money in
the economy? - ANS By providing individuals and firms access to financial markets to buy or
sell financial securities
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? -
ANS Leading indicator
Suppose an individual does not eat chocolate because eating chocolate goes against his
personal beliefs. Which type of standard is this? - ANS Moral
Which action is based upon moral standards? - ANS Although there is no company policy
regarding it, a financial manager chooses not to accept gifts from the company's clients to
ensure that she does not create a conflict of interest
What should a potential bondholder (lender) do to prevent a company (borrower) from taking
on risky projects? - ANS Set strict covenants that the company cannot uphold if it chooses a
risky project
What is the term for an individual's beliefs concerning what is and is not acceptable to
personally do? - ANS Morals
Which factor contributes to the inflation of the prices of goods and services over time? -
ANS Increase in demand for goods and services
Why can compounding interest be a good tool but also a significant detriment? -
ANS Compounding interest can be a good tool because it allows a lender to gain interest on
interest, but it is a detriment because it causes a borrower to pay interest on interest
Which component of the required rate of return takes into account the loss of potential gain
from other alternatives? - ANS Opportunity cost
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
