WGU D076 Finance Skills for Managers| OA|
Objective Assessment | Actual Questions
and Answers Latest Updated
(Graded A+)
Correct
Incorrect
D076 Finance Skills for Managers| Objective Assessment
, Finance focuses on the future, while accounting is generally backward-looking. -
finance is the management and allocation of capital with the objectives of investing,
forecasting, budgeting, saving, lending, and borrowing.
Bonds do not require a firm to give up any ownership. -This is attractive to a firm that
needs funds for a project but wishes to maintain control.
To make the company's performance look good -
A manager might manipulate accounting procedures to inflate the earnings of
a company, which would optimize bonuses and stock-price-related benefits
for management.
Don't know?
2 of 112
Definition
Based on the inflation rate, she should expect this stock to provide a
return higher than this for the associated risk. - Since the inflation of 2-
3% will reduce any nominal returns she receives by this amount, she
would want a higher return to accommodate for the opportunity costs
and risks associated with the investment.
Give this one a try later!
0/1
You are analyzing fixed assets to create pro forma financial statements for your
company. You realize that, since sales will increase next year, you will also need
your manufacturing capacity to increase by the same amount. Currently, you are
operating at maximum capacity. You buy an entire new factory and multiple pieces
,of equipment that increase capacity to much more than you need to meet the sales
growth. Which concept describes why such a large purchase was necessary?
You are considering starting a new business to sell Widgets in your hometown. You
can import the Widgets at a low cost, and you hope to be able to sell them for
significantly more. Which ratio can help you calculate how much profit you will earn
from the sale of each Widget? (Assume you are only considering the cost of the
Widget, not any other operating costs.)
What is the term for the return over the entire period that an investor owns a
financial security?
Suppose Sophia is considering a new stock investment for her retirement
account. This stock has significant risk, but is quite popular in the market.
Inflation for the next few years is expected to be 2-3% per year, and the
current U.S. Treasury rates are about 2%. How should she use this information
to decide what type of return she can expect from the stock?
Don't know?
, 3 of 112
Term
You are considering starting a new business to sell Widgets in your
hometown. You can import the Widgets at a low cost, and you hope to
be able to sell them for significantly more. Which ratio can help you
calculate how much profit you will earn from the sale of each Widget?
(Assume you are only considering the cost of the Widget, not any
other operating costs.)
Give this one a try later!
Gross margin - Gross margin tells you the percent of sales that become gross
profit. The rest of the money earned from sales is used for the production of
goods.
Cash budget - A cash budget is a short-term forecast of future events that helps a
company understand whether it has sufficient cash for regular operations.
They provide standardization. - Ratios standardize financial data to make them
comparable across firms, even those of distinctly different sizes.
Put the amount of money budgeted for each category of your expenses into
labeled envelopes and then spend the money in each envelope on expenses in that
category.
Don't know?
Objective Assessment | Actual Questions
and Answers Latest Updated
(Graded A+)
Correct
Incorrect
D076 Finance Skills for Managers| Objective Assessment
, Finance focuses on the future, while accounting is generally backward-looking. -
finance is the management and allocation of capital with the objectives of investing,
forecasting, budgeting, saving, lending, and borrowing.
Bonds do not require a firm to give up any ownership. -This is attractive to a firm that
needs funds for a project but wishes to maintain control.
To make the company's performance look good -
A manager might manipulate accounting procedures to inflate the earnings of
a company, which would optimize bonuses and stock-price-related benefits
for management.
Don't know?
2 of 112
Definition
Based on the inflation rate, she should expect this stock to provide a
return higher than this for the associated risk. - Since the inflation of 2-
3% will reduce any nominal returns she receives by this amount, she
would want a higher return to accommodate for the opportunity costs
and risks associated with the investment.
Give this one a try later!
0/1
You are analyzing fixed assets to create pro forma financial statements for your
company. You realize that, since sales will increase next year, you will also need
your manufacturing capacity to increase by the same amount. Currently, you are
operating at maximum capacity. You buy an entire new factory and multiple pieces
,of equipment that increase capacity to much more than you need to meet the sales
growth. Which concept describes why such a large purchase was necessary?
You are considering starting a new business to sell Widgets in your hometown. You
can import the Widgets at a low cost, and you hope to be able to sell them for
significantly more. Which ratio can help you calculate how much profit you will earn
from the sale of each Widget? (Assume you are only considering the cost of the
Widget, not any other operating costs.)
What is the term for the return over the entire period that an investor owns a
financial security?
Suppose Sophia is considering a new stock investment for her retirement
account. This stock has significant risk, but is quite popular in the market.
Inflation for the next few years is expected to be 2-3% per year, and the
current U.S. Treasury rates are about 2%. How should she use this information
to decide what type of return she can expect from the stock?
Don't know?
, 3 of 112
Term
You are considering starting a new business to sell Widgets in your
hometown. You can import the Widgets at a low cost, and you hope to
be able to sell them for significantly more. Which ratio can help you
calculate how much profit you will earn from the sale of each Widget?
(Assume you are only considering the cost of the Widget, not any
other operating costs.)
Give this one a try later!
Gross margin - Gross margin tells you the percent of sales that become gross
profit. The rest of the money earned from sales is used for the production of
goods.
Cash budget - A cash budget is a short-term forecast of future events that helps a
company understand whether it has sufficient cash for regular operations.
They provide standardization. - Ratios standardize financial data to make them
comparable across firms, even those of distinctly different sizes.
Put the amount of money budgeted for each category of your expenses into
labeled envelopes and then spend the money in each envelope on expenses in that
category.
Don't know?
