WGU D076 FINANCE SKILLS FOR EXAM
QUESTIONS WITH CORRECT ANSWERS
2026/2027 LATEST UPDATE
Which task does the financial manager of a firm perform that involves
the issuance of new stocks and bonds? - ✔✔✔ANSWER-
Making financing decisions
(Correct! Once investment decisions are made, a financial manager
considers different possibilities of financing sources for the
investments. This may include issuing new stocks and bonds.)
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.
(Correct! Any financial decision should make sense in terms of its costs
and benefits.)
Page | 1
,In which type of market would a company issue bonds or stocks for the
first time? - ✔✔✔ANSWER-Primary market
(Correct! This is the purpose of a primary market.)
Which type of financial institution is a mutual fund? - ✔✔✔ANSWER-
Investment institution
(Correct! Investment institutions provide individuals and firms access to
financial markets.)
Which financial institution specializes in managing and
administering retirement funds? - ✔✔✔ANSWER-Pension funds
(Correct! Pension funds specialize in retirement funds.)
Which type of economic indicator is the consumer price index? - ✔
✔✔ANSWER-Lagging indicator
(Correct! CPI usually changes after the economy as a whole changes.)
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, What does the term ethical refer to? - ✔✔✔ANSWER-The accepted
standards of conduct that guide a person's behavior
(Correct! Ethical refers to the accepted standards of conduct that guide a
person's behavior.)
Which account is a discretionary account? - ✔✔✔ANSWER-Notes
payable
(Correct! Notes payable does not vary with sales, and it is based on
management discretion.)
What is the rate at which a firm can grow without issuing new equity? -
✔✔✔ANSWER-Sustainable growth rate
(Correct! The sustainable growth rate is the growth rate that allows a
firm to maintain its present financial ratios without issuing new equity.)
Page | 3
QUESTIONS WITH CORRECT ANSWERS
2026/2027 LATEST UPDATE
Which task does the financial manager of a firm perform that involves
the issuance of new stocks and bonds? - ✔✔✔ANSWER-
Making financing decisions
(Correct! Once investment decisions are made, a financial manager
considers different possibilities of financing sources for the
investments. This may include issuing new stocks and bonds.)
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.
(Correct! Any financial decision should make sense in terms of its costs
and benefits.)
Page | 1
,In which type of market would a company issue bonds or stocks for the
first time? - ✔✔✔ANSWER-Primary market
(Correct! This is the purpose of a primary market.)
Which type of financial institution is a mutual fund? - ✔✔✔ANSWER-
Investment institution
(Correct! Investment institutions provide individuals and firms access to
financial markets.)
Which financial institution specializes in managing and
administering retirement funds? - ✔✔✔ANSWER-Pension funds
(Correct! Pension funds specialize in retirement funds.)
Which type of economic indicator is the consumer price index? - ✔
✔✔ANSWER-Lagging indicator
(Correct! CPI usually changes after the economy as a whole changes.)
Page | 2
, What does the term ethical refer to? - ✔✔✔ANSWER-The accepted
standards of conduct that guide a person's behavior
(Correct! Ethical refers to the accepted standards of conduct that guide a
person's behavior.)
Which account is a discretionary account? - ✔✔✔ANSWER-Notes
payable
(Correct! Notes payable does not vary with sales, and it is based on
management discretion.)
What is the rate at which a firm can grow without issuing new equity? -
✔✔✔ANSWER-Sustainable growth rate
(Correct! The sustainable growth rate is the growth rate that allows a
firm to maintain its present financial ratios without issuing new equity.)
Page | 3
