D076 Test Questions With Correct
Answers
In which way is accounting different from finance?
| | | | | | |
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. - CORRECT 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?
| | | | | | | |
Will the benefits of the action outweigh the costs?
| | | | | | | |
Will this decision require debt or equity financing?
| | | | | | |
Will utility be maximized through this decision? - CORRECT
| | | | | | | | |
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 | |
Making investment decisions | |
Managing interdepartmental loans - CORRECT ANSWER✔✔-Making
| | | | | |
financing decisions |
How can investing help a person reach personal financial goals?
| | | | | | | | |
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. - CORRECT 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?
| | | | | | | | | | | |
Efficient market |
Secondary market |
Money market |
Primary market - CORRECT ANSWER✔✔-Primary market
| | | | |
, Which type of economic indicator changes after the economy changes
| | | | | | | | | |
and helps identify trends in the long term?
| | | | | | |
Yield curve indicator
| |
Leading indicator |
Coincident indicator |
Lagging indicator - CORRECT ANSWER✔✔-Lagging indicator
| | | | |
How does an investment institution, such as a mutual fund, facilitate the
| | | | | | | | | | |
circulation of money in the economy?
| | | | | |
By insuring deposits in investment accounts up to $250,000 to promote
| | | | | | | | | | |
public confidence |
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 - CORRECT ANSWER✔✔-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?
| | | | | |
Correlated indicator |
Coincident indicator |
Lagging indicator |
Leading indicator - CORRECT ANSWER✔✔-Leading indicator
| | | | |
Answers
In which way is accounting different from finance?
| | | | | | |
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. - CORRECT 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?
| | | | | | | |
Will the benefits of the action outweigh the costs?
| | | | | | | |
Will this decision require debt or equity financing?
| | | | | | |
Will utility be maximized through this decision? - CORRECT
| | | | | | | | |
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 | |
Making investment decisions | |
Managing interdepartmental loans - CORRECT ANSWER✔✔-Making
| | | | | |
financing decisions |
How can investing help a person reach personal financial goals?
| | | | | | | | |
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. - CORRECT 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?
| | | | | | | | | | | |
Efficient market |
Secondary market |
Money market |
Primary market - CORRECT ANSWER✔✔-Primary market
| | | | |
, Which type of economic indicator changes after the economy changes
| | | | | | | | | |
and helps identify trends in the long term?
| | | | | | |
Yield curve indicator
| |
Leading indicator |
Coincident indicator |
Lagging indicator - CORRECT ANSWER✔✔-Lagging indicator
| | | | |
How does an investment institution, such as a mutual fund, facilitate the
| | | | | | | | | | |
circulation of money in the economy?
| | | | | |
By insuring deposits in investment accounts up to $250,000 to promote
| | | | | | | | | | |
public confidence |
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 - CORRECT ANSWER✔✔-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?
| | | | | |
Correlated indicator |
Coincident indicator |
Lagging indicator |
Leading indicator - CORRECT ANSWER✔✔-Leading indicator
| | | | |
