WGU D076 Finance Skills for Managers Exam
2026 | Verified Practice Questions & Accurate
Answers
Module 1: What is Finance?
1. 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?
• Real estate
• Business finance
• Financial institutions
• Investments
2. What is the primary difference between finance and
accounting?
• Finance provides financial data to decision makers, and
accounting involves making decisions using that data.
• Accounting focuses on the future, while finance is generally
backward-looking.
• Accounting involves investing and forecasting, while
finance summarizes a company’s financial
information.
• Finance focuses on the future, while accounting is generally
backward-looking.
3. Which subspecialty of finance primarily involves deciding
which assets will create more wealth and earn positive
returns?
• Financial institutions
• Accounting
• Investments
• Capital structure
,4. What is the primary goal of the financial manager of a firm?
• To minimize the asset holdings of the firm
• To minimize the costs of the firm
• To maximize the manager’s utility
• To maximize owner wealth
5. What should be the main question a firm asks when
considering any investment decision?
• Will this investment add value to the firm?
• Do the benefits of this investment outweigh the costs?
• Will this investment help the company reduce costs?
• What is the best investment in the stock market?
6. What is the primary aim of personal finance goals?
• To maximize shareholders’ utility by increasing a firm’s
value
• To increase consumption of goods and services
• To create more wealth and returns on investments
• To maximize satisfaction from products purchased and services
obtained
,7. Which task does a financial manager perform when
choosing to obtain a loan to purchase a piece of
equipment for a new project?
• Making investment decisions
• Making inventory control decisions
• Making financing decisions
• Making credit standard decisions
8. Which financial career focuses on investing capital into
firms whose shares are not currently sold on any public
stock exchange?
• Private equity
• Insurance
• Financial planning
• Corporate finance
9. Which task does a financial manager perform when
assessing the costs and benefits of potential projects?
• Making investment decisions
• Managing working capital
• Implementing financial policies
• Making financing decisions
10. What tool can you use to understand your overall personal
cash flows?
• Budgeting
• Setting financial goals
• Saving
• Investing
11. What is a reasonable alternative to keeping an emergency
, stash of cash?
• Investing in long-term bonds
• Investing in a savings account
• Investing the money in a nicer car
• Investing in high-risk growth stocks
12. You want to buy a house, so you obtain a mortgage for
which you can afford the monthly payments. What
process have you engaged in as part of your financial
decision-making?
• Assessing
• Financing
• Analyzing data
• Investing
2026 | Verified Practice Questions & Accurate
Answers
Module 1: What is Finance?
1. 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?
• Real estate
• Business finance
• Financial institutions
• Investments
2. What is the primary difference between finance and
accounting?
• Finance provides financial data to decision makers, and
accounting involves making decisions using that data.
• Accounting focuses on the future, while finance is generally
backward-looking.
• Accounting involves investing and forecasting, while
finance summarizes a company’s financial
information.
• Finance focuses on the future, while accounting is generally
backward-looking.
3. Which subspecialty of finance primarily involves deciding
which assets will create more wealth and earn positive
returns?
• Financial institutions
• Accounting
• Investments
• Capital structure
,4. What is the primary goal of the financial manager of a firm?
• To minimize the asset holdings of the firm
• To minimize the costs of the firm
• To maximize the manager’s utility
• To maximize owner wealth
5. What should be the main question a firm asks when
considering any investment decision?
• Will this investment add value to the firm?
• Do the benefits of this investment outweigh the costs?
• Will this investment help the company reduce costs?
• What is the best investment in the stock market?
6. What is the primary aim of personal finance goals?
• To maximize shareholders’ utility by increasing a firm’s
value
• To increase consumption of goods and services
• To create more wealth and returns on investments
• To maximize satisfaction from products purchased and services
obtained
,7. Which task does a financial manager perform when
choosing to obtain a loan to purchase a piece of
equipment for a new project?
• Making investment decisions
• Making inventory control decisions
• Making financing decisions
• Making credit standard decisions
8. Which financial career focuses on investing capital into
firms whose shares are not currently sold on any public
stock exchange?
• Private equity
• Insurance
• Financial planning
• Corporate finance
9. Which task does a financial manager perform when
assessing the costs and benefits of potential projects?
• Making investment decisions
• Managing working capital
• Implementing financial policies
• Making financing decisions
10. What tool can you use to understand your overall personal
cash flows?
• Budgeting
• Setting financial goals
• Saving
• Investing
11. What is a reasonable alternative to keeping an emergency
, stash of cash?
• Investing in long-term bonds
• Investing in a savings account
• Investing the money in a nicer car
• Investing in high-risk growth stocks
12. You want to buy a house, so you obtain a mortgage for
which you can afford the monthly payments. What
process have you engaged in as part of your financial
decision-making?
• Assessing
• Financing
• Analyzing data
• Investing
