3/31/25, 9:30 Diagram of WGU D076 Finance Skills for Managers |
AM
WGU D076 FINANCE SKILLS FOR MANAGERS EXAM QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS VERIFIED GRADED A++
Terms in this set (375)
The system of recording, reporting, and summarizing past financial information
Accounting
and transactions.
Accounts Receivable Turnover (AR An activity ratio found by credit sales divided by accounts receivable.
Turnover)
A category of ratios that measure how well a company uses its assets to
Activity Ratios
generate sales or cash, showing the firm's operational efficiency and profitability.
Another name for the discretionary financing needed or external financing
Additional Funds Needed (AFN) needed. It represents the additional financing needed given a firm's expectations
for future growth.
A bond covenant that describes things the company pledges itself to do in order
Affirmative Covenants
to protect bondholders.
Costs that are incurred when management does not act in the best interest of
Agency Costs
shareholders.
When the agent (the management) does not act in the best interest of the
Agency Problem
principle (the owners).
Aggressive Assets Companies or securities with beta greater than 1.
The annual interest rate that is charged for borrowing money or that is earned
Annual Percentage Rate
through investment.
Annuity Due A series of equal payments made at the beginning of consecutive periods.
Annuity A stream of cash flows of an equal amount paid every consecutive period.
Asset Pricing The process of valuing assets.
A secondary market with a physical location and where prices are determined by
Auction Market
investors' willingness to pay.
An activity ratio found by the number of days in a year (365) divided by AR
Average Collection Period (ACP)
turnover.
Using sales growth and the profit forecast to construct a pro forma balance sheet
Balance Sheet Forecasting
to understand the future implications of the sources and uses of finances.
Banks and Credit Unions Receive deposits and extend loans to individuals and businesses.
The process of completing a financial analysis to compare a firm's financial
Benchmarking
performance to that of other similar firms.
Beta A variable that describes how the price of a security varies with the market.
The difference between the bid and ask prices that compensate the specialist for
Bid-ask Spread
the risk that he or she bears for willingness to provide liquidity.
Board of Directors A group of people who jointly supervise the activities of an organization.
Bond Indenture A legal contract that governs the relationship between a firm and its bondholders.
Bondholders A person who loans a corporation money by buying debt securities.
An area of finance that deals with sources of funding, the capital structure of
Business Finance corporations, the actions that managers take to increase the value of the firm to
its owners, and the tools and analysis used to allocate financial resources.
The reduction in sales of a company's own products due to introduction of
Cannibalization
another similar product.
Capital Asset Pricing Model (CAPM) A model used to determine the risk-return relationship for an asset.
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AM
WGU D076 FINANCE SKILLS FOR MANAGERS EXAM QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS VERIFIED GRADED A++
Terms in this set (375)
The system of recording, reporting, and summarizing past financial information
Accounting
and transactions.
Accounts Receivable Turnover (AR An activity ratio found by credit sales divided by accounts receivable.
Turnover)
A category of ratios that measure how well a company uses its assets to
Activity Ratios
generate sales or cash, showing the firm's operational efficiency and profitability.
Another name for the discretionary financing needed or external financing
Additional Funds Needed (AFN) needed. It represents the additional financing needed given a firm's expectations
for future growth.
A bond covenant that describes things the company pledges itself to do in order
Affirmative Covenants
to protect bondholders.
Costs that are incurred when management does not act in the best interest of
Agency Costs
shareholders.
When the agent (the management) does not act in the best interest of the
Agency Problem
principle (the owners).
Aggressive Assets Companies or securities with beta greater than 1.
The annual interest rate that is charged for borrowing money or that is earned
Annual Percentage Rate
through investment.
Annuity Due A series of equal payments made at the beginning of consecutive periods.
Annuity A stream of cash flows of an equal amount paid every consecutive period.
Asset Pricing The process of valuing assets.
A secondary market with a physical location and where prices are determined by
Auction Market
investors' willingness to pay.
An activity ratio found by the number of days in a year (365) divided by AR
Average Collection Period (ACP)
turnover.
Using sales growth and the profit forecast to construct a pro forma balance sheet
Balance Sheet Forecasting
to understand the future implications of the sources and uses of finances.
Banks and Credit Unions Receive deposits and extend loans to individuals and businesses.
The process of completing a financial analysis to compare a firm's financial
Benchmarking
performance to that of other similar firms.
Beta A variable that describes how the price of a security varies with the market.
The difference between the bid and ask prices that compensate the specialist for
Bid-ask Spread
the risk that he or she bears for willingness to provide liquidity.
Board of Directors A group of people who jointly supervise the activities of an organization.
Bond Indenture A legal contract that governs the relationship between a firm and its bondholders.
Bondholders A person who loans a corporation money by buying debt securities.
An area of finance that deals with sources of funding, the capital structure of
Business Finance corporations, the actions that managers take to increase the value of the firm to
its owners, and the tools and analysis used to allocate financial resources.
The reduction in sales of a company's own products due to introduction of
Cannibalization
another similar product.
Capital Asset Pricing Model (CAPM) A model used to determine the risk-return relationship for an asset.
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