WGU D076 PA Questions and Correct Answers & Latest Updated
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Course
WGU D076
Institution
WGU D076
In which way is accounting different from finance?
-Accounting is backward looking, while finance is focused on the future.
-Accounting is about budgeting, saving, and borrowing, while finance is about investing,
forecasting, and lending.
-Accounting is focused on allocating capital, while fin...
WGU D076 PA Questions and Correct Answers
& Latest Updated
In which way is accounting different from finance?
-Accounting is backward looking, while finance is focused on the future.
-Accounting is about budgeting, saving, and borrowing, while finance is about investing,
forecasting, and lending.
-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.
o :## 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 utility be maximized through this decision?
-Will this decision require debt or equity financing?
-Will the benefits of the action outweigh the costs?
-Will this decrease the amount of cash available?
o :## 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.
Master01: DO NOT COPY AND PASTE!! August 25, 2024 Latest Update
,2|Page: 2024/2025 Grade A+
Which main task in business finance is this situation an example of?
-Managing interdepartmental loans
-Making investment decisions
-Managing working capital
-Making financing decisions
o :## 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 provides a guaranteed future outcome in order to predictably meet financial goals.
-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.
o :## 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?
-Money market
-Secondary market
-Primary market
-Efficient market
Master01: DO NOT COPY AND PASTE!! August 25, 2024 Latest Update
, 3|Page: 2024/2025 Grade A+
o :## Primary Market
Which type of economic indicator changes after the economy changes and helps identify
trends in the long term?
-Leading indicator
-Yield curve indicator
-Coincident indicator
-Lagging indicator
o :## 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 insuring deposits in investment accounts up to $250,000 to promote public confidence
-By accepting deposits of money, paying interest on deposits, and providing loans to
individuals and organizations
o :## 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?
Master01: DO NOT COPY AND PASTE!! August 25, 2024 Latest Update
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