D076 WGU QUESTIONS & ANSWERS
In which way is accounting different from finance?
Accounting is focused on allocating capital, while finance is focused on bringing in
capital.
Accounting forecasts future performance, given the past, while finance records past
performance.
Accounting is about budgeting, saving, and borrowing, while finance is about investing,
forecasting, and lending.
Accounting is backward looking, while finance is focused on the future. - Answer -
Accounting is backward looking, while finance is focused on the future.
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?
Managing working capital
Making investment decisions
Managing interdepartmental loans
Making financing decisions - 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.
It provides a guaranteed future outcome in order to predictably meet financial goals. -
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?
Primary market
Money market
Efficient market
Secondary market - Answer -Primary market
Which type of economic indicator changes after the economy changes and helps
identify trends in the long term?
Lagging indicator
, Yield curve indicator
Leading indicator
Coincident indicator - Answer -Lagging indicator
How does an investment institution, such as a mutual fund, facilitate the circulation of
money in the economy?
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
By accepting deposits of money, paying interest on deposits, and providing loans to
individuals and organizations
By insuring deposits in investment accounts up to $250,000 to promote public
confidence - Answer -By providing individuals and firms access to financial markets to
buy or sell financial securities
What is the main question that both individuals and companies must consider when
making financial decisions to reach a goal?
Will this decision require debt or equity financing?
Will utility be maximized through this decision?
Will this decrease the amount of cash available?
Will the benefits of the action outweigh the costs? - Answer -Will the benefits of the
action outweigh the costs?
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?
Coincident indicator
Leading indicator
Lagging indicator
Correlated indicator - Answer -Leading indicator
Suppose an individual does not eat chocolate because eating chocolate goes against
his personal beliefs. Which type of standard is this?
Moral
Legal
Ethical
Financial - Answer -Moral
Which action is based upon moral standards?
In which way is accounting different from finance?
Accounting is focused on allocating capital, while finance is focused on bringing in
capital.
Accounting forecasts future performance, given the past, while finance records past
performance.
Accounting is about budgeting, saving, and borrowing, while finance is about investing,
forecasting, and lending.
Accounting is backward looking, while finance is focused on the future. - Answer -
Accounting is backward looking, while finance is focused on the future.
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?
Managing working capital
Making investment decisions
Managing interdepartmental loans
Making financing decisions - 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.
It provides a guaranteed future outcome in order to predictably meet financial goals. -
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?
Primary market
Money market
Efficient market
Secondary market - Answer -Primary market
Which type of economic indicator changes after the economy changes and helps
identify trends in the long term?
Lagging indicator
, Yield curve indicator
Leading indicator
Coincident indicator - Answer -Lagging indicator
How does an investment institution, such as a mutual fund, facilitate the circulation of
money in the economy?
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
By accepting deposits of money, paying interest on deposits, and providing loans to
individuals and organizations
By insuring deposits in investment accounts up to $250,000 to promote public
confidence - Answer -By providing individuals and firms access to financial markets to
buy or sell financial securities
What is the main question that both individuals and companies must consider when
making financial decisions to reach a goal?
Will this decision require debt or equity financing?
Will utility be maximized through this decision?
Will this decrease the amount of cash available?
Will the benefits of the action outweigh the costs? - Answer -Will the benefits of the
action outweigh the costs?
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?
Coincident indicator
Leading indicator
Lagging indicator
Correlated indicator - Answer -Leading indicator
Suppose an individual does not eat chocolate because eating chocolate goes against
his personal beliefs. Which type of standard is this?
Moral
Legal
Ethical
Financial - Answer -Moral
Which action is based upon moral standards?
