WGU D076 PA Questions and Answers
In which way is accounting Accounting is backward looking, while finance is focused on the future.
different from finance?
-Accounting is backward looking,
while finance is focused on the
future.
-Accounting is about budgeting,
saving, and borrowing, while
finance is about investing,
forecasting, and lending.
-Accounting is focused on
allocating capital, while finance
is focused on bringing in
capital.
-Accounting forecasts future
performance, given the past,
while finance records past
performance.
What is the main question that Will the benefits of the action outweigh the costs?
both individuals and companies
must consider when making
financial decisions to reach a
goal?
-Will utility be maximized through
this decision?
-Will this decision require debt or
equity financing?
-Will the benefits of the action
outweigh the costs?
-Will this decrease the amount of
cash available?
,A financial manager at a Making financing decisions
company is trying to determine
whether to issue new stocks or
new bonds to cover the costs of
a project the company is doing
the next year.
Which main task in business finance
is this situation an example of?
-Managing interdepartmental loans
-Making investment decisions
-Managing working capital
-Making financing decisions
How can investing help a person It provides access to potential revenue or increases in value to help
reach personal financial goals? meet goals faster.
-It provides access to potential
revenue or increases in value to
help meet goals faster.
-It provides a guaranteed future
outcome in order to predictably
meet financial goals.
-It ensures money is placed in a
safe, risk- free, and easily
accessible financial asset.
-It helps a person understand how
money was spent previously in
order to reliably predict future
expenses.
A sign company is planning to Primary Market
have an initial public offering
(IPO). In which type of market
will its stock first be sold to the
public?
-Money market
-Secondary market
-Primary market
-Efficient market
Which type of economic indicator Lagging indicator
changes after the economy
changes and helps identify
trends in the long term?
-Leading indicator
-Yield curve indicator
-Coincident indicator
-Lagging indicator
How does an investment By providing individuals and firms access to financial markets to
institution, such as a mutual buy or sell financial securities
fund, facilitate the circulation of
money in the economy?
, -By raising capital on a
contractual basis, such as an
insurance contract
-By providing individuals and
firms access to financial markets
to buy or sell financial securities
-By insuring deposits in
investment accounts up to
$250,000 to promote public
confidence
-By accepting deposits of
money, paying interest on
deposits, and providing loans to
individuals and organizations
In which way is accounting Accounting is backward looking, while finance is focused on the future.
different from finance?
-Accounting is backward looking,
while finance is focused on the
future.
-Accounting is about budgeting,
saving, and borrowing, while
finance is about investing,
forecasting, and lending.
-Accounting is focused on
allocating capital, while finance
is focused on bringing in
capital.
-Accounting forecasts future
performance, given the past,
while finance records past
performance.
What is the main question that Will the benefits of the action outweigh the costs?
both individuals and companies
must consider when making
financial decisions to reach a
goal?
-Will utility be maximized through
this decision?
-Will this decision require debt or
equity financing?
-Will the benefits of the action
outweigh the costs?
-Will this decrease the amount of
cash available?
,A financial manager at a Making financing decisions
company is trying to determine
whether to issue new stocks or
new bonds to cover the costs of
a project the company is doing
the next year.
Which main task in business finance
is this situation an example of?
-Managing interdepartmental loans
-Making investment decisions
-Managing working capital
-Making financing decisions
How can investing help a person It provides access to potential revenue or increases in value to help
reach personal financial goals? meet goals faster.
-It provides access to potential
revenue or increases in value to
help meet goals faster.
-It provides a guaranteed future
outcome in order to predictably
meet financial goals.
-It ensures money is placed in a
safe, risk- free, and easily
accessible financial asset.
-It helps a person understand how
money was spent previously in
order to reliably predict future
expenses.
A sign company is planning to Primary Market
have an initial public offering
(IPO). In which type of market
will its stock first be sold to the
public?
-Money market
-Secondary market
-Primary market
-Efficient market
Which type of economic indicator Lagging indicator
changes after the economy
changes and helps identify
trends in the long term?
-Leading indicator
-Yield curve indicator
-Coincident indicator
-Lagging indicator
How does an investment By providing individuals and firms access to financial markets to
institution, such as a mutual buy or sell financial securities
fund, facilitate the circulation of
money in the economy?
, -By raising capital on a
contractual basis, such as an
insurance contract
-By providing individuals and
firms access to financial markets
to buy or sell financial securities
-By insuring deposits in
investment accounts up to
$250,000 to promote public
confidence
-By accepting deposits of
money, paying interest on
deposits, and providing loans to
individuals and organizations
