WGU D076 Finance Skills for Managers |PA|
Pre-Assessment | Actual Questions and
Answers Latest Updated
(Graded A+)
Correct
Incorrect
D076 Finance Skills for Managers| Pre-Assessment
1 of 169
Term
Which statement below is an example of how ratios are used in the
field of finance?
Ratio analysis is performed based on a strict set of rules governed by
generally accepted accounting principles.
A firm's ratios may vary year over year, so they are not helpful for
evaluating whether firm goals are met.
Ratios are helpful only when comparing companies that are the same
size and that use the same operational style.
,A firm's ratios are compared with those of a benchmark peer group to
determine the firm's relative strength and performance.
Give this one a try later!
A firm's ratios are compared with those of a benchmark peer group to
determine the firm's relative strength and performance.
Non-spontaneous accounts
Non-spontaneous, or discretionary, accounts do not vary automatically with sales
but are left to the discretion of management.
Liquidity ratios measure a firm's ability to meet short-term obligations without raising
external capital.
Investments is the area of finance that seeks to create wealth in the future by
deciding where to allocate money.
Don't know?
2 of 169
Term
When can the discretionary financing needed (DFN) be determined?
Give this one a try later!
, To maximize satisfaction from products purchased and services obtained. The
objective of personal financial goals is to maximize one's utility.
How much room a firm has to grow without additional investment in fixed assets
By using the ratio of actual sales to percent of capacity, you can determine how
much sales growth the firm can support without needing to invest in further fixed
assets.
After pro-forma financial statements are forecasted using the percent of sales
method
Once all the financial statements are projected according to a given set of
assumptions, you can determine the financing required to fund the predicted
growth in sales.
Safe projects with a higher chance of providing sufficient compensation.
Bondholders provide money for a company for a certain period of time and want
companies to pay them back for their investment.
Don't know?
3 of 169
Term
In which type of market would a company issue bonds or stocks for the
first time?
Give this one a try later!
, Secondary market Third market
Tertiary market Primary market
Don't know?
4 of 169
Term
What is the inflation rate?
Give this one a try later!
The rate at which the average
price level of a basket of goods The rate at which unemployment
and services in an economy levels in an economy decrease
increases
The rate at which interest rates are The rate at which the total economic
adjusted by central banks output of a country increases
Don't know?
5 of 169
Term
Pre-Assessment | Actual Questions and
Answers Latest Updated
(Graded A+)
Correct
Incorrect
D076 Finance Skills for Managers| Pre-Assessment
1 of 169
Term
Which statement below is an example of how ratios are used in the
field of finance?
Ratio analysis is performed based on a strict set of rules governed by
generally accepted accounting principles.
A firm's ratios may vary year over year, so they are not helpful for
evaluating whether firm goals are met.
Ratios are helpful only when comparing companies that are the same
size and that use the same operational style.
,A firm's ratios are compared with those of a benchmark peer group to
determine the firm's relative strength and performance.
Give this one a try later!
A firm's ratios are compared with those of a benchmark peer group to
determine the firm's relative strength and performance.
Non-spontaneous accounts
Non-spontaneous, or discretionary, accounts do not vary automatically with sales
but are left to the discretion of management.
Liquidity ratios measure a firm's ability to meet short-term obligations without raising
external capital.
Investments is the area of finance that seeks to create wealth in the future by
deciding where to allocate money.
Don't know?
2 of 169
Term
When can the discretionary financing needed (DFN) be determined?
Give this one a try later!
, To maximize satisfaction from products purchased and services obtained. The
objective of personal financial goals is to maximize one's utility.
How much room a firm has to grow without additional investment in fixed assets
By using the ratio of actual sales to percent of capacity, you can determine how
much sales growth the firm can support without needing to invest in further fixed
assets.
After pro-forma financial statements are forecasted using the percent of sales
method
Once all the financial statements are projected according to a given set of
assumptions, you can determine the financing required to fund the predicted
growth in sales.
Safe projects with a higher chance of providing sufficient compensation.
Bondholders provide money for a company for a certain period of time and want
companies to pay them back for their investment.
Don't know?
3 of 169
Term
In which type of market would a company issue bonds or stocks for the
first time?
Give this one a try later!
, Secondary market Third market
Tertiary market Primary market
Don't know?
4 of 169
Term
What is the inflation rate?
Give this one a try later!
The rate at which the average
price level of a basket of goods The rate at which unemployment
and services in an economy levels in an economy decrease
increases
The rate at which interest rates are The rate at which the total economic
adjusted by central banks output of a country increases
Don't know?
5 of 169
Term
