D076 OA EXAM Questions and Answers (Verified Answers) (Latest Upda
2025) UPDATE!!
1. What does the term legal describe? An action that is in accor-
dance with the laws and
Encourage manipulation of accounting procedures to rules set by an authority.
optimize the company's profit
Release managers who do not attempt to maximize
immediate shareholder value
Set strict covenants that the company cannot uphold
if it chooses a risky project
An action that is in accordance with the laws and rules
set by an authority.
2. What does high inventory turnover relative to the in- The firm does not hold
dustry and competitors indicate? enough inventory and is
making its customers wait
Models are required by the SEC when a firm plans to longer to receive their pur-
issue additional stock on the public market. chased goods.
The firm holds too much inventory and its successful
selling its good and services.
Models allow users to see the complex relationships
between sales and other aspects of the business.
The firm does not hold enough inventory and is mak-
ing its customers wait longer to receive their pur-
chased goods.
3. What is the ratio that tells you on average how long it Average collection period
takes for a firm to collect accounts receivable.
Average Benchmarking
Opportunity cost
Average collection period
Leading indicator
, D076 OA EXAM Questions and Answers (Verified Answers) (Latest Upda
2025) UPDATE!!
4. Three different names are used for interest rate for Discount rate, required
different purposes and perspectives: rate, and cost of capital.
Discount rate, required rate, and cost of capital.
Required rate, correlated indicator, opportunity cost
Cost of capital, interest rate, and renew rate
required rate, discount method, cost of interest
5. What is the main purpose of charging interest? It allows borrowers to pay
to use the assets of an-
interest can be a good tool because it summarizes other entity to accomplish
the required return, but it is a detriment because it their own goals.
requires a larger cost of capital.
The higher risk an investor takes, the higher return the
investor expects to receive.
Compounding interest can be a good tool to under-
stand the time value of money, but it is a detriment
because it does not take inflation into account.
It allows borrowers to pay to use the assets of another
entity to accomplish their own goals.
6. The required rate of return is also known as the BLANK Hurdle rate.
in the context of corporate finance.
Inflation
Hurdle rate
Opportunity cost
Risk
7. The BLANK is the rate of return or compensation that Required rate of return
an investor or lender will accept for investments such
as stocks, bonds, or loans.
, D076 OA EXAM Questions and Answers (Verified Answers) (Latest Upda
2025) UPDATE!!
Hurdle rate
Inflation
Opportunity cost
Required rate of return
8. BLANK Is the possibility that the realized or actual re- Risk
turn will differ from the expected return?
Hurdle rate.
Inflation
Opportunity cost
Risk
9. Which components of an interest rate is an indicator of Risk-free rate
inflation and opportunity cost?
Capital growth rate
Risk-free rate
Sustainable growth rate
Sales growth rate
10. What is the name for the interest rate expressed on an Annual percentage rate
annual basis?
Sustainable growth rate
Historical regression
Annual percentage rate
Annual Percent of sales
11. Why is the required rate of return also known as the
hurdle rate?
2025) UPDATE!!
1. What does the term legal describe? An action that is in accor-
dance with the laws and
Encourage manipulation of accounting procedures to rules set by an authority.
optimize the company's profit
Release managers who do not attempt to maximize
immediate shareholder value
Set strict covenants that the company cannot uphold
if it chooses a risky project
An action that is in accordance with the laws and rules
set by an authority.
2. What does high inventory turnover relative to the in- The firm does not hold
dustry and competitors indicate? enough inventory and is
making its customers wait
Models are required by the SEC when a firm plans to longer to receive their pur-
issue additional stock on the public market. chased goods.
The firm holds too much inventory and its successful
selling its good and services.
Models allow users to see the complex relationships
between sales and other aspects of the business.
The firm does not hold enough inventory and is mak-
ing its customers wait longer to receive their pur-
chased goods.
3. What is the ratio that tells you on average how long it Average collection period
takes for a firm to collect accounts receivable.
Average Benchmarking
Opportunity cost
Average collection period
Leading indicator
, D076 OA EXAM Questions and Answers (Verified Answers) (Latest Upda
2025) UPDATE!!
4. Three different names are used for interest rate for Discount rate, required
different purposes and perspectives: rate, and cost of capital.
Discount rate, required rate, and cost of capital.
Required rate, correlated indicator, opportunity cost
Cost of capital, interest rate, and renew rate
required rate, discount method, cost of interest
5. What is the main purpose of charging interest? It allows borrowers to pay
to use the assets of an-
interest can be a good tool because it summarizes other entity to accomplish
the required return, but it is a detriment because it their own goals.
requires a larger cost of capital.
The higher risk an investor takes, the higher return the
investor expects to receive.
Compounding interest can be a good tool to under-
stand the time value of money, but it is a detriment
because it does not take inflation into account.
It allows borrowers to pay to use the assets of another
entity to accomplish their own goals.
6. The required rate of return is also known as the BLANK Hurdle rate.
in the context of corporate finance.
Inflation
Hurdle rate
Opportunity cost
Risk
7. The BLANK is the rate of return or compensation that Required rate of return
an investor or lender will accept for investments such
as stocks, bonds, or loans.
, D076 OA EXAM Questions and Answers (Verified Answers) (Latest Upda
2025) UPDATE!!
Hurdle rate
Inflation
Opportunity cost
Required rate of return
8. BLANK Is the possibility that the realized or actual re- Risk
turn will differ from the expected return?
Hurdle rate.
Inflation
Opportunity cost
Risk
9. Which components of an interest rate is an indicator of Risk-free rate
inflation and opportunity cost?
Capital growth rate
Risk-free rate
Sustainable growth rate
Sales growth rate
10. What is the name for the interest rate expressed on an Annual percentage rate
annual basis?
Sustainable growth rate
Historical regression
Annual percentage rate
Annual Percent of sales
11. Why is the required rate of return also known as the
hurdle rate?
