WGU D076 FINANCE SKILLS CORE MAIN EXAMS
QUESTIONS AND ANSWERS SURE A+
✔✔Balance Sheet Forecasting - ✔✔Using sales growth and the profit forecast to
construct a pro forma balance sheet to understand the future implications of the sources
and uses of finances.
✔✔Banks and Credit Unions - ✔✔Receive deposits and extend loans to individuals and
businesses.
✔✔Benchmarking - ✔✔The process of completing a financial analysis to compare a
firm's financial performance to that of other similar firms.
✔✔Beta - ✔✔A variable that describes how the price of a security varies with the
market.
✔✔Bid-ask Spread - ✔✔The difference between the bid and ask prices that
compensate the specialist for the risk that he or she bears for willingness to provide
liquidity.
✔✔Board of Directors - ✔✔A group of people who jointly supervise the activities of an
organization.
✔✔Bond Indenture - ✔✔A legal contract that governs the relationship between a firm
and its bondholders.
✔✔Bondholders - ✔✔A person who loans a corporation money by buying debt
securities.
✔✔Business Finance - ✔✔an area of finance that deals with sources of funding, the
capital structure of corporations, the actions that managers take to increase the value of
the firm to its owners, and the tools and analysis used to allocate financial resources
, ✔✔Cannibalization - ✔✔The reduction in sales of a company's own products due to
introduction of another similar
✔✔Capital - ✔✔A financial asset that can be used by a firm or individual. Examples may
be machinery or cash held by a firm.
✔✔Capital Asset Pricing Model (CAPM) - ✔✔A model used to determine the required
return on an asset.
✔✔Capital Budgeting - ✔✔The process of evaluation and planning for purchases of
long-term assets.
✔✔Capital budgeting criteria - ✔✔Metrics and calculations used to determine whether a
project or asset will add value and be a worthwhile investment.
✔✔Capital Markets - ✔✔A type of financial market used for long-term assets that are
held for greater that one year.
✔✔Capital Structure - ✔✔The mixture of debt and equity used to finance a firm.
✔✔Capital-Constrained environment - ✔✔when a limited amount of funds are available
✔✔Cash budgets - ✔✔a plan for controlling cash inflows and outflows business to
balance income with expenditures
✔✔Cash Management - ✔✔managing the day-to-day finance operations of a firm
✔✔Central Banks - ✔✔Ensure that a nation's economy remains healthy by controlling
the amount of money circulating in the economy
✔✔Common Stock - ✔✔A type of stock that represents equity in a firm and confers the
right to vote at shareholder meetings.
✔✔Compounding - ✔✔Finding a future value given a present value.
✔✔Compounding Interest - ✔✔The interest on the principal plus the interest on earned
interest
✔✔Corporate Bonds - ✔✔A debt instrument that is issued by a corporation in order to
raise capital
✔✔Corporate Governance - ✔✔The system of rules, practices, and processes by which
a firm is directed and controlled.
QUESTIONS AND ANSWERS SURE A+
✔✔Balance Sheet Forecasting - ✔✔Using sales growth and the profit forecast to
construct a pro forma balance sheet to understand the future implications of the sources
and uses of finances.
✔✔Banks and Credit Unions - ✔✔Receive deposits and extend loans to individuals and
businesses.
✔✔Benchmarking - ✔✔The process of completing a financial analysis to compare a
firm's financial performance to that of other similar firms.
✔✔Beta - ✔✔A variable that describes how the price of a security varies with the
market.
✔✔Bid-ask Spread - ✔✔The difference between the bid and ask prices that
compensate the specialist for the risk that he or she bears for willingness to provide
liquidity.
✔✔Board of Directors - ✔✔A group of people who jointly supervise the activities of an
organization.
✔✔Bond Indenture - ✔✔A legal contract that governs the relationship between a firm
and its bondholders.
✔✔Bondholders - ✔✔A person who loans a corporation money by buying debt
securities.
✔✔Business Finance - ✔✔an area of finance that deals with sources of funding, the
capital structure of corporations, the actions that managers take to increase the value of
the firm to its owners, and the tools and analysis used to allocate financial resources
, ✔✔Cannibalization - ✔✔The reduction in sales of a company's own products due to
introduction of another similar
✔✔Capital - ✔✔A financial asset that can be used by a firm or individual. Examples may
be machinery or cash held by a firm.
✔✔Capital Asset Pricing Model (CAPM) - ✔✔A model used to determine the required
return on an asset.
✔✔Capital Budgeting - ✔✔The process of evaluation and planning for purchases of
long-term assets.
✔✔Capital budgeting criteria - ✔✔Metrics and calculations used to determine whether a
project or asset will add value and be a worthwhile investment.
✔✔Capital Markets - ✔✔A type of financial market used for long-term assets that are
held for greater that one year.
✔✔Capital Structure - ✔✔The mixture of debt and equity used to finance a firm.
✔✔Capital-Constrained environment - ✔✔when a limited amount of funds are available
✔✔Cash budgets - ✔✔a plan for controlling cash inflows and outflows business to
balance income with expenditures
✔✔Cash Management - ✔✔managing the day-to-day finance operations of a firm
✔✔Central Banks - ✔✔Ensure that a nation's economy remains healthy by controlling
the amount of money circulating in the economy
✔✔Common Stock - ✔✔A type of stock that represents equity in a firm and confers the
right to vote at shareholder meetings.
✔✔Compounding - ✔✔Finding a future value given a present value.
✔✔Compounding Interest - ✔✔The interest on the principal plus the interest on earned
interest
✔✔Corporate Bonds - ✔✔A debt instrument that is issued by a corporation in order to
raise capital
✔✔Corporate Governance - ✔✔The system of rules, practices, and processes by which
a firm is directed and controlled.
