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D076 EXAM BUNDLE QUESTIONS & ANSWERS 100% ACCURATE (GRADED A+)
D076 EXAM BUNDLE QUESTIONS & ANSWERS 100% ACCURATE (GRADED A+)
[Show more]D076 EXAM BUNDLE QUESTIONS & ANSWERS 100% ACCURATE (GRADED A+)
[Show more]What is the difference between the current ratio and the quick ratio? - ANSWER-Inventory is excluded in the calculation of the quick ratio. 
 
What is the term for the risk that changes in interest rates will impact the value of a bond? - ANSWER-Interest rate risk 
 
What is used to measure total ri...
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Add to cartWhat is the difference between the current ratio and the quick ratio? - ANSWER-Inventory is excluded in the calculation of the quick ratio. 
 
What is the term for the risk that changes in interest rates will impact the value of a bond? - ANSWER-Interest rate risk 
 
What is used to measure total ri...
UNIT 2 
What are the main services offered by financial institutions? 
 
1. Deciding which assets to invest in to create wealth in the future 
 
2. Soliciting charitable donations and then managing the distribution of these funds 
 
3. Evaluating sources of funding for a business project, the capita...
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Add to cartUNIT 2 
What are the main services offered by financial institutions? 
 
1. Deciding which assets to invest in to create wealth in the future 
 
2. Soliciting charitable donations and then managing the distribution of these funds 
 
3. Evaluating sources of funding for a business project, the capita...
In which way is accounting different from finance? 
Accounting is backward looking, while finance is focused on the future. 
Accounting is focused on allocating capital, while finance is focused on bringing in capital. 
Accounting is about budgeting, saving, and borrowing, while finance is about inv...
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Add to cartIn which way is accounting different from finance? 
Accounting is backward looking, while finance is focused on the future. 
Accounting is focused on allocating capital, while finance is focused on bringing in capital. 
Accounting is about budgeting, saving, and borrowing, while finance is about inv...
UNIT 2 
 
What are the main services offered by financial institutions? - ANSWER-Accepting a wide variety of deposits, offering investment products, providing loans, and brokering financial transactions 
 
(Correct! Financial institutions such as banks, insurance companies, and mutual fund companie...
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Add to cartUNIT 2 
 
What are the main services offered by financial institutions? - ANSWER-Accepting a wide variety of deposits, offering investment products, providing loans, and brokering financial transactions 
 
(Correct! Financial institutions such as banks, insurance companies, and mutual fund companie...
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...
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Add to cartIn 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...
Current Ratio - ANSWER-Is a liquidity ratio. Short-term debt paying ability. 
 
Current Assets/Current Liabilities 
 
Quick Ratio - ANSWER-Also known as acid test. Is a liquidity ratio. Provides a more accurate cash position of firm by excluding inventory from current assets. 
 
Current Assets-Inv...
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Add to cartCurrent Ratio - ANSWER-Is a liquidity ratio. Short-term debt paying ability. 
 
Current Assets/Current Liabilities 
 
Quick Ratio - ANSWER-Also known as acid test. Is a liquidity ratio. Provides a more accurate cash position of firm by excluding inventory from current assets. 
 
Current Assets-Inv...
In which way is accounting different from finance? 
Accounting forecasts future performance, given the past, while finance records past performance. 
Accounting is backward looking, while finance is focused on the future. 
Accounting is focused on allocating capital, while finance is focused on brin...
Preview 3 out of 16 pages
Add to cartIn which way is accounting different from finance? 
Accounting forecasts future performance, given the past, while finance records past performance. 
Accounting is backward looking, while finance is focused on the future. 
Accounting is focused on allocating capital, while finance is focused on brin...
Which area of finance deals with sources of funding and the capital structure of corporations and seeks to increase the value of a firm to its owners? 
Business finance 
Real estate 
Investments 
Financial institutions - ANSWER-Correct! Business finance is the area of finance that deals with uses an...
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Add to cartWhich area of finance deals with sources of funding and the capital structure of corporations and seeks to increase the value of a firm to its owners? 
Business finance 
Real estate 
Investments 
Financial institutions - ANSWER-Correct! Business finance is the area of finance that deals with uses an...
What is another name for the cost of capital? - ANSWER-Discount rate 
 
What is the name for the minimum rate of return that an investor or lender will accept for investments? - ANSWER-Required rate of return 
 
The nominal interest rate of an investment is 8%, and the inflation rate is 3%. What is ...
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Add to cartWhat is another name for the cost of capital? - ANSWER-Discount rate 
 
What is the name for the minimum rate of return that an investor or lender will accept for investments? - ANSWER-Required rate of return 
 
The nominal interest rate of an investment is 8%, and the inflation rate is 3%. What is ...
Which principle of ratio analysis means that ratios are open for analyst interpretation, are not governed by rules, and allow creativity to work according to a particular company or asset? - ANSWER-Flexibility 
 
Comparing a firm's ratios across time. - ANSWER-Trend Analysis 
 
Comparing a firm's ...
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Add to cartWhich principle of ratio analysis means that ratios are open for analyst interpretation, are not governed by rules, and allow creativity to work according to a particular company or asset? - ANSWER-Flexibility 
 
Comparing a firm's ratios across time. - ANSWER-Trend Analysis 
 
Comparing a firm's ...
Which principle of ratio analysis means that ratios are open for analyst interpretation, are not governed by rules, and allow creativity to work according to a particular company or asset? - ANSWER-Flexibility 
 
Comparing a firm's ratios across time. - ANSWER-Trend Analysis 
 
Comparing a firm's ...
Preview 2 out of 5 pages
Add to cartWhich principle of ratio analysis means that ratios are open for analyst interpretation, are not governed by rules, and allow creativity to work according to a particular company or asset? - ANSWER-Flexibility 
 
Comparing a firm's ratios across time. - ANSWER-Trend Analysis 
 
Comparing a firm's ...
Which area of finance deals with sources of funding and the capital structure of corporations and seeks to increase the value of a firm to its owners? - ANSWER-Business finance 
 
What is the primary difference between finance and accounting? - ANSWER-Finance focuses on the future, while accounting ...
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Add to cartWhich area of finance deals with sources of funding and the capital structure of corporations and seeks to increase the value of a firm to its owners? - ANSWER-Business finance 
 
What is the primary difference between finance and accounting? - ANSWER-Finance focuses on the future, while accounting ...
What are the three areas of finance? - ANSWER-Business finance (Also known as managerial finance, financial management and organizational finance) 
 
Investments 
 
Financial institutions 
 
What is the main difference between finance and accounting? - ANSWER-Finance is forward-looking, accounting i...
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Add to cartWhat are the three areas of finance? - ANSWER-Business finance (Also known as managerial finance, financial management and organizational finance) 
 
Investments 
 
Financial institutions 
 
What is the main difference between finance and accounting? - ANSWER-Finance is forward-looking, accounting i...
Accounting - ANSWER-The system of recording, reporting, and summarizing past financial information and transactions 
 
Accounts Receivable Turnover (AR Turnover) - ANSWER-An activity ratio found by credit sales divided by accounts receivable. 
credit sales/accounts receivable 
 
Activity Ratios - AN...
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Add to cartAccounting - ANSWER-The system of recording, reporting, and summarizing past financial information and transactions 
 
Accounts Receivable Turnover (AR Turnover) - ANSWER-An activity ratio found by credit sales divided by accounts receivable. 
credit sales/accounts receivable 
 
Activity Ratios - AN...
Unit 2 (Module 1) 
 
What area of finance involves deciding which assets to invest in to create wealth in the future? - ANSWER-Unit 2 
 
Investments 
 
(Investments are an area of finance that involves deciding which assets to invest in to create wealth in the future.) 
 
Hannah is the financial man...
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Add to cartUnit 2 (Module 1) 
 
What area of finance involves deciding which assets to invest in to create wealth in the future? - ANSWER-Unit 2 
 
Investments 
 
(Investments are an area of finance that involves deciding which assets to invest in to create wealth in the future.) 
 
Hannah is the financial man...
Finance - ANSWER-Study of managing and allocating funds 
 
Capital - ANSWER-Assests i.e. machinery or cash 
 
Capital Structure - ANSWER-the mixture of debt and equity used to finance a firm 
 
Financial Institutions - ANSWER-Org. that accept variety of deposits, offer investment products, provide l...
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Add to cartFinance - ANSWER-Study of managing and allocating funds 
 
Capital - ANSWER-Assests i.e. machinery or cash 
 
Capital Structure - ANSWER-the mixture of debt and equity used to finance a firm 
 
Financial Institutions - ANSWER-Org. that accept variety of deposits, offer investment products, provide l...
What is the name of the Chair of the U.S. Federal Reserve system? - ANSWER-Jerome Powell 
 
This concept says "a dollar today is not worth the same as a dollar in the future" - ANSWER-The Time Value of Money 
 
What is the name of the Treasury Secretary of the U.S. Department of the Treasury? - AN...
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Add to cartWhat is the name of the Chair of the U.S. Federal Reserve system? - ANSWER-Jerome Powell 
 
This concept says "a dollar today is not worth the same as a dollar in the future" - ANSWER-The Time Value of Money 
 
What is the name of the Treasury Secretary of the U.S. Department of the Treasury? - AN...
Purpose of Financial Forecasting - ANSWER-Help managers make decisions on future performance 
 
Helps decision makers understand how actions taken today can impact the firm's future performance 
 
Financial Forecasting - 3 Basic Steps - ANSWER-1. Project the firms sales revenues and expenses over t...
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Add to cartPurpose of Financial Forecasting - ANSWER-Help managers make decisions on future performance 
 
Helps decision makers understand how actions taken today can impact the firm's future performance 
 
Financial Forecasting - 3 Basic Steps - ANSWER-1. Project the firms sales revenues and expenses over t...
What area of finance involves deciding which assets to invest in to create wealth in the future? - ANSWER-Investments 
 
(Investments are an area of finance that involves deciding which assets to invest in to create wealth in the future.) 
 
Hannah is the financial manager of a firm. A project that ...
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Add to cartWhat area of finance involves deciding which assets to invest in to create wealth in the future? - ANSWER-Investments 
 
(Investments are an area of finance that involves deciding which assets to invest in to create wealth in the future.) 
 
Hannah is the financial manager of a firm. A project that ...
After W&H Inc. has developed a cash budget, what should the company do in the following months? - ANSWER-It should monitor its actual cash flows and then revise the cash budget if needed. 
 
W&H Inc.'s labor costs each month are an example of which item in a cash budget? - ANSWER-Cash disbursement ...
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Add to cartAfter W&H Inc. has developed a cash budget, what should the company do in the following months? - ANSWER-It should monitor its actual cash flows and then revise the cash budget if needed. 
 
W&H Inc.'s labor costs each month are an example of which item in a cash budget? - ANSWER-Cash disbursement ...
Trend Analysis - ANSWER-Comparing a firm's ratios across time. 
 
Cross Sectional Analysis - ANSWER-Comparing a firm's financial ratios to other firms' ratios or industry averages. 
 
Benchmarking - ANSWER-The process of completing a financial analysis to compare a firm's financial performance t...
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Add to cartTrend Analysis - ANSWER-Comparing a firm's ratios across time. 
 
Cross Sectional Analysis - ANSWER-Comparing a firm's financial ratios to other firms' ratios or industry averages. 
 
Benchmarking - ANSWER-The process of completing a financial analysis to compare a firm's financial performance t...
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,...
Preview 3 out of 20 pages
Add to cartIn 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,...
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 finan...
Preview 3 out of 17 pages
Add to cartIn 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 finan...
Real Return - ANSWER-Rate of growth in purchasing power of goods and services 
 
Holding Period Return - ANSWER-Return over the entire period that an investor owns a financial security 
 
Beta - ANSWER-A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the...
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Add to cartReal Return - ANSWER-Rate of growth in purchasing power of goods and services 
 
Holding Period Return - ANSWER-Return over the entire period that an investor owns a financial security 
 
Beta - ANSWER-A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the...
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