WGU D076 Finance Skills for Managers Question and
answers correctly solved 2025/2026
Study online at
1 Accountin The system of recording, reporting, and
. g summarizing
past financial information and
2 Accounts Receivable Turnover (AR An activity ratio found by
transactions.
. credit sales divided
Turnover)counts by ac-
receivable.
3. Activity Ratios A category of ratios that measure how well a
company uses its assets to generate sales or
cash, showing the firm's operational eflciency
and profitability.
4. Additional Funds Needed (AFN) Another name for the discretionary financing needed
or external financing needed. It represents the
addi-tional financing needed given a firm's
expectations for future growth.
5. Affirmative Covenants A bond covenant that describes things the
company
pledges itself to do in order to protect bondholders.
6. Agency Costs Costs that are incurred when management does
not act in the best interest of shareholders.
7. Agency Problem When the agent (the management) does not act
in the best interest of the principle (the
owners).
8. Aggressive Assets Companies or securities with beta greater than 1.
9. Annual Percentage Rate The annual interest rate that is charged for
borrowing
money or that is earned through investment.
10. Annuity Due A series of equal payments made at the
beginning of consecutive periods.
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,11. Annuity A stream of cash flows of an equal amount
paid every consecutive period.
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, WGU D076 Finance Skills for
Managers
sset Pricing The process of valuing assets.
uction Market A secondary market with a physical
location and where prices are
determined by investors' willingness to
14. Average Collection Period (ACP)
pay. An activity ratio found by the number of days in a
year
(365) divided by AR turnover.
15. Balance Sheet Forecasting Using sales growth and the profit forecast to
construct
a pro forma balance sheet to understand the future
implications of the sources and uses of
finances.
16. Banks and Credit Unions Receive deposits and extend loans to individuals and
businesses.
17. Benchmarking The process of completing a financial analysis to
com-pare a firm's financial performance to that
of other similar firms.
18. Beta A variable that describes how the price of a
security varies with the market.
19. Bid-ask Spread The ditterence between the bid and ask prices
that compensate the specialist for the risk that
he or she bears for willingness to provide
liquidity.
20. Board of Directors A group of people who jointly supervise the
activities of an organization.
21. Bond Indenture A legal contract that governs the relationship
between a firm and its bondholders.
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, 22. Bondholders
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85
answers correctly solved 2025/2026
Study online at
1 Accountin The system of recording, reporting, and
. g summarizing
past financial information and
2 Accounts Receivable Turnover (AR An activity ratio found by
transactions.
. credit sales divided
Turnover)counts by ac-
receivable.
3. Activity Ratios A category of ratios that measure how well a
company uses its assets to generate sales or
cash, showing the firm's operational eflciency
and profitability.
4. Additional Funds Needed (AFN) Another name for the discretionary financing needed
or external financing needed. It represents the
addi-tional financing needed given a firm's
expectations for future growth.
5. Affirmative Covenants A bond covenant that describes things the
company
pledges itself to do in order to protect bondholders.
6. Agency Costs Costs that are incurred when management does
not act in the best interest of shareholders.
7. Agency Problem When the agent (the management) does not act
in the best interest of the principle (the
owners).
8. Aggressive Assets Companies or securities with beta greater than 1.
9. Annual Percentage Rate The annual interest rate that is charged for
borrowing
money or that is earned through investment.
10. Annuity Due A series of equal payments made at the
beginning of consecutive periods.
1/
85
,11. Annuity A stream of cash flows of an equal amount
paid every consecutive period.
2/
85
, WGU D076 Finance Skills for
Managers
sset Pricing The process of valuing assets.
uction Market A secondary market with a physical
location and where prices are
determined by investors' willingness to
14. Average Collection Period (ACP)
pay. An activity ratio found by the number of days in a
year
(365) divided by AR turnover.
15. Balance Sheet Forecasting Using sales growth and the profit forecast to
construct
a pro forma balance sheet to understand the future
implications of the sources and uses of
finances.
16. Banks and Credit Unions Receive deposits and extend loans to individuals and
businesses.
17. Benchmarking The process of completing a financial analysis to
com-pare a firm's financial performance to that
of other similar firms.
18. Beta A variable that describes how the price of a
security varies with the market.
19. Bid-ask Spread The ditterence between the bid and ask prices
that compensate the specialist for the risk that
he or she bears for willingness to provide
liquidity.
20. Board of Directors A group of people who jointly supervise the
activities of an organization.
21. Bond Indenture A legal contract that governs the relationship
between a firm and its bondholders.
3/
85
, 22. Bondholders
4/
85
