WGU - D076 GLOSSARY 2024/ exam
with A+ GRADED- QUESTIONS AND
CORRECT ANSWERS
Risk-free Rate - CORRECT ANSWERThe rate of return on an investment with no risk.
Sales - CORRECT ANSWERThe top line of the income statement. The total amount of
money a business brings in (before subtracting out any costs).
Seasonal Firms - CORRECT ANSWERFirms whose performance varies according to
the season.
Secondary Market - CORRECT ANSWERThe financial market where securities are
traded after the initial issuance.
Securitization - CORRECT ANSWERThe process of combining several types of
contractual debt (such as mortgages) and reselling them as a package to investors.
Shareholders - CORRECT ANSWERA person who owns shares of a company's stock.
Simple Interest - CORRECT ANSWERThe interest earned only on the principal.
Specialist - CORRECT ANSWERA market maker on the NYSE that holds an inventory
of securities and acts as a liquidity provider to those that wish to buy and sell.
Spontaneous Accounts - CORRECT ANSWERAccounts that vary naturally with sales.
Stakeholder - CORRECT ANSWERAnyone who may be affected by actions taken or a
decision made.
Standard Deviation - CORRECT ANSWERA measure of dispersion of possible
outcomes about the mean.
Steady State Growth - CORRECT ANSWERThe level of growth where four key financial
ratios—profitability, asset utilization, leverage, and payout—are constant and where the
firm does not need to issue any new equity to fund the growth.
Stock - CORRECT ANSWERA share of ownership in a company.
, Sunk Costs - CORRECT ANSWERA cost that has already been incurred and cannot be
recovered.
Sustainable Growth Rate (SGR) - CORRECT ANSWERThe growth rate that allows a
firm to maintain its present financial ratios without issuing new equity.
Syndicate - CORRECT ANSWERA group of intermediaries that is used to oversee the
issuance of stocks and/or bonds.
Systematic Risk - CORRECT ANSWERRisk that is inherent in the economy as a whole
and cannot be diversified away; also called market risk or nondiversifiable risk.
Tax Strategies - CORRECT ANSWERMethods used to minimize the amount of taxes a
business pays.
Teller - CORRECT ANSWERAn entry-level commercial bank position with the
reponsibility to interact with customers at the bank's front desk or drive-through window.
Time Value of Money (TVM) - CORRECT ANSWERThe idea that money that is
available at the present time is worth more than the same amount in the future.
Times Interest Earned (TIE) - CORRECT ANSWERA financing ratio found by EBIT
divided by interest expenses.
Total Asset Turnover (TAT) - CORRECT ANSWERAn activity ratio found by sales
divided by total assets.
Treasury Bill - CORRECT ANSWERA bill issued by the U.S. government as a financial
security with no interest and a maturity of less than one year; abbreviated T-bill.
Treasury Note - CORRECT ANSWERA note issued by the U.S. government as a
financial security with a fixed interest rate and a short maturity between 1 and 10 years;
abbreviated T-note.
Treasury Securities - CORRECT ANSWERA debt instrument (bond) that is issued by
the United States government in order to raise capital.
Trend Analysis - CORRECT ANSWERComparing a firm's ratios across time.
Trusts - CORRECT ANSWERAn arrangement that allows a third party to hold assets on
behalf of a beneficiary or beneficiaries.
U.S Securities and Exchange Commission (SEC) - CORRECT ANSWERAn
independent federal government agency that (1) protects investors, (2) maintains fair,
orderly, and efficient markets, and (3) facilitates capital formation.
with A+ GRADED- QUESTIONS AND
CORRECT ANSWERS
Risk-free Rate - CORRECT ANSWERThe rate of return on an investment with no risk.
Sales - CORRECT ANSWERThe top line of the income statement. The total amount of
money a business brings in (before subtracting out any costs).
Seasonal Firms - CORRECT ANSWERFirms whose performance varies according to
the season.
Secondary Market - CORRECT ANSWERThe financial market where securities are
traded after the initial issuance.
Securitization - CORRECT ANSWERThe process of combining several types of
contractual debt (such as mortgages) and reselling them as a package to investors.
Shareholders - CORRECT ANSWERA person who owns shares of a company's stock.
Simple Interest - CORRECT ANSWERThe interest earned only on the principal.
Specialist - CORRECT ANSWERA market maker on the NYSE that holds an inventory
of securities and acts as a liquidity provider to those that wish to buy and sell.
Spontaneous Accounts - CORRECT ANSWERAccounts that vary naturally with sales.
Stakeholder - CORRECT ANSWERAnyone who may be affected by actions taken or a
decision made.
Standard Deviation - CORRECT ANSWERA measure of dispersion of possible
outcomes about the mean.
Steady State Growth - CORRECT ANSWERThe level of growth where four key financial
ratios—profitability, asset utilization, leverage, and payout—are constant and where the
firm does not need to issue any new equity to fund the growth.
Stock - CORRECT ANSWERA share of ownership in a company.
, Sunk Costs - CORRECT ANSWERA cost that has already been incurred and cannot be
recovered.
Sustainable Growth Rate (SGR) - CORRECT ANSWERThe growth rate that allows a
firm to maintain its present financial ratios without issuing new equity.
Syndicate - CORRECT ANSWERA group of intermediaries that is used to oversee the
issuance of stocks and/or bonds.
Systematic Risk - CORRECT ANSWERRisk that is inherent in the economy as a whole
and cannot be diversified away; also called market risk or nondiversifiable risk.
Tax Strategies - CORRECT ANSWERMethods used to minimize the amount of taxes a
business pays.
Teller - CORRECT ANSWERAn entry-level commercial bank position with the
reponsibility to interact with customers at the bank's front desk or drive-through window.
Time Value of Money (TVM) - CORRECT ANSWERThe idea that money that is
available at the present time is worth more than the same amount in the future.
Times Interest Earned (TIE) - CORRECT ANSWERA financing ratio found by EBIT
divided by interest expenses.
Total Asset Turnover (TAT) - CORRECT ANSWERAn activity ratio found by sales
divided by total assets.
Treasury Bill - CORRECT ANSWERA bill issued by the U.S. government as a financial
security with no interest and a maturity of less than one year; abbreviated T-bill.
Treasury Note - CORRECT ANSWERA note issued by the U.S. government as a
financial security with a fixed interest rate and a short maturity between 1 and 10 years;
abbreviated T-note.
Treasury Securities - CORRECT ANSWERA debt instrument (bond) that is issued by
the United States government in order to raise capital.
Trend Analysis - CORRECT ANSWERComparing a firm's ratios across time.
Trusts - CORRECT ANSWERAn arrangement that allows a third party to hold assets on
behalf of a beneficiary or beneficiaries.
U.S Securities and Exchange Commission (SEC) - CORRECT ANSWERAn
independent federal government agency that (1) protects investors, (2) maintains fair,
orderly, and efficient markets, and (3) facilitates capital formation.
