NES SPECIAL EDUCATION EXAM 601 / D076
– ALL UNIT TESTS EXAM Q&A 2026/2027
LATEST EXAM
Why is NPV the most reliable method for evaluating investments?
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
What is the main objective of personal financial goals? -
✔✔✔ANSWER-To maximize individual utility
Which task does the financial manager of a firm perform that involves
the issuance of new stocks and bonds? - ✔✔✔ANSWER- Making
financing decisions
1 | Pa g e
,Why is understanding the definition of finance important in managing
personal finances? - ✔✔✔ANSWER-It helps individuals compare the
costs and benefits of an action to determine whether to take that action.
In which type of market would a company issue bonds or stocks for the
first time? - ✔✔✔ANSWER-Primary market
Which type of financial institution is a mutual fund? -
✔✔✔ANSWER-Investment institution
-
✔✔✔ANSWER-It considers the time value of money, it tells you the
dollar value that the investment will add to the firm, and it takes risk into
account.
WCH Company wants to create a cash budget to better manage its cash
flows. The financial manager knows that the firm's labor costs and
materials costs are too high for the level of sales each month. The firm
also needs to keep better track of its cash flows to assess its need for
additional financing through short-term loans.
2 | Pa g e
,WCH Inc.'s labor costs each month are an example of which item in a
cash budget? - ✔✔✔ANSWER-Cash disbursement
WCH Company wants to create a cash budget to better manage its cash
flows. The financial manager knows that the firm's labor costs and
materials costs are too high for the level of sales each month. The firm
also needs to keep better track of its cash flows to assess its need for
additional financing through short-term loans.
After WCH 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.
WCH Company wants to create a cash budget to better manage its cash
flows. The financial manager knows that the firm's labor costs and
materials costs are too high for the level of sales each month. The firm
also needs to keep better track of its cash flows to assess its need for
additional financing through short-term loans.
3 | Pa g e
, Which financial institution specializes in managing and administering
retirement funds? - ✔✔✔ANSWER-Pension funds
Which type of economic indicator is the consumer price index? - ✔
✔✔ANSWER-Lagging indicator
What does the term ethical refer to? - ✔✔✔ANSWER-The accepted
standards of conduct that guide a person's behavior
A company's officers and board of directors are selling their stocks in the
firm at higher prices due to false accounting reports that made the stock
seem more valuable than it truly was. Which ethical issue is occurring in
this situation? - ✔✔✔ANSWER-Agency problem due to conflicting
interests
Which area of finance involves deciding which assets to invest in to
create wealth in the future? - ✔✔✔ANSWER-Investments
What is the main goal of a firm? - ✔✔✔ANSWER-To maximize owner
wealth
4 | Pa g e
– ALL UNIT TESTS EXAM Q&A 2026/2027
LATEST EXAM
Why is NPV the most reliable method for evaluating investments?
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
What is the main objective of personal financial goals? -
✔✔✔ANSWER-To maximize individual utility
Which task does the financial manager of a firm perform that involves
the issuance of new stocks and bonds? - ✔✔✔ANSWER- Making
financing decisions
1 | Pa g e
,Why is understanding the definition of finance important in managing
personal finances? - ✔✔✔ANSWER-It helps individuals compare the
costs and benefits of an action to determine whether to take that action.
In which type of market would a company issue bonds or stocks for the
first time? - ✔✔✔ANSWER-Primary market
Which type of financial institution is a mutual fund? -
✔✔✔ANSWER-Investment institution
-
✔✔✔ANSWER-It considers the time value of money, it tells you the
dollar value that the investment will add to the firm, and it takes risk into
account.
WCH Company wants to create a cash budget to better manage its cash
flows. The financial manager knows that the firm's labor costs and
materials costs are too high for the level of sales each month. The firm
also needs to keep better track of its cash flows to assess its need for
additional financing through short-term loans.
2 | Pa g e
,WCH Inc.'s labor costs each month are an example of which item in a
cash budget? - ✔✔✔ANSWER-Cash disbursement
WCH Company wants to create a cash budget to better manage its cash
flows. The financial manager knows that the firm's labor costs and
materials costs are too high for the level of sales each month. The firm
also needs to keep better track of its cash flows to assess its need for
additional financing through short-term loans.
After WCH 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.
WCH Company wants to create a cash budget to better manage its cash
flows. The financial manager knows that the firm's labor costs and
materials costs are too high for the level of sales each month. The firm
also needs to keep better track of its cash flows to assess its need for
additional financing through short-term loans.
3 | Pa g e
, Which financial institution specializes in managing and administering
retirement funds? - ✔✔✔ANSWER-Pension funds
Which type of economic indicator is the consumer price index? - ✔
✔✔ANSWER-Lagging indicator
What does the term ethical refer to? - ✔✔✔ANSWER-The accepted
standards of conduct that guide a person's behavior
A company's officers and board of directors are selling their stocks in the
firm at higher prices due to false accounting reports that made the stock
seem more valuable than it truly was. Which ethical issue is occurring in
this situation? - ✔✔✔ANSWER-Agency problem due to conflicting
interests
Which area of finance involves deciding which assets to invest in to
create wealth in the future? - ✔✔✔ANSWER-Investments
What is the main goal of a firm? - ✔✔✔ANSWER-To maximize owner
wealth
4 | Pa g e
