D076 Study Guide Exam Questions With Revised Answers
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Course
WGU D076
Institution
WGU D076
D076 Study Guide Exam Questions With
Revised 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.
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D076 Study Guide Exam Questions With
Revised 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.
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?
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
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?
Since it is generally accepted in the company that no personal information about clients should
be released without written permission, a financial manager denies the request for a third party to
access its data.
As outlined in the company's policies, a financial manager hires a third-party entity to review all
annual report filings to ensure they are compliant with applicable generally accepted accounting
principles (GAAP).
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