D076 Finance Skills for
Managers - Pre
Assessment test
questions and answers
2024
In which way is accounting different from finance? -
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? - answer Will
the benefits of the action outweigh the cost?
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. - answer Making Financing
Decision
, How can investing help a person reach personal
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? - answer Primary Market
Which type of economic indicator changes after the
economy changes and helps identify trends in the
long term? - answer Lagging Indicator
How does an investment institution, such as a
mutual fund, facilitate the circulation of money in
the economy? - 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? - answer Leading
Indicator
Suppose an individual does not eat chocolate
because eating chocolate goes against personal
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