D076 EXAM BUNDLE QUESTIONS & ANSWERS 100% ACCURATE (GRADED A+)

UNIT 2 What are the main services offered by financial institutions? 1. Deciding which assets to invest in to create wealth in the future 2. Soliciting charitable donations and then managing the distribution of these funds 3. Evaluating sources of funding for a business project, the capita...

In which way is accounting different from finance? Accounting is backward looking, while finance is focused on the future. Accounting is focused on allocating capital, while finance is focused on bringing in capital. Accounting is about budgeting, saving, and borrowing, while finance is about inv...

UNIT 2 What are the main services offered by financial institutions? - ANSWER-Accepting a wide variety of deposits, offering investment products, providing loans, and brokering financial transactions (Correct! Financial institutions such as banks, insurance companies, and mutual fund companie...

In which way is accounting different from finance? - ANSWER-Accounting is backward looking, while finance is focused on the future. What is the main question that both individuals and companies must consider when making financial decisions to reach a goal? - ANSWER-Will the benefits of the action...

Current Ratio - ANSWER-Is a liquidity ratio. Short-term debt paying ability. Current Assets/Current Liabilities Quick Ratio - ANSWER-Also known as acid test. Is a liquidity ratio. Provides a more accurate cash position of firm by excluding inventory from current assets. Current Assets-Inv...

In which way is accounting different from finance? Accounting forecasts future performance, given the past, while finance records past performance. Accounting is backward looking, while finance is focused on the future. Accounting is focused on allocating capital, while finance is focused on brin...

Which area of finance deals with sources of funding and the capital structure of corporations and seeks to increase the value of a firm to its owners? Business finance Real estate Investments Financial institutions - ANSWER-Correct! Business finance is the area of finance that deals with uses an...

What is another name for the cost of capital? - ANSWER-Discount rate What is the name for the minimum rate of return that an investor or lender will accept for investments? - ANSWER-Required rate of return The nominal interest rate of an investment is 8%, and the inflation rate is 3%. What is ...

Which principle of ratio analysis means that ratios are open for analyst interpretation, are not governed by rules, and allow creativity to work according to a particular company or asset? - ANSWER-Flexibility Comparing a firm's ratios across time. - ANSWER-Trend Analysis Comparing a firm's ...

Which principle of ratio analysis means that ratios are open for analyst interpretation, are not governed by rules, and allow creativity to work according to a particular company or asset? - ANSWER-Flexibility Comparing a firm's ratios across time. - ANSWER-Trend Analysis Comparing a firm's ...

Which area of finance deals with sources of funding and the capital structure of corporations and seeks to increase the value of a firm to its owners? - ANSWER-Business finance What is the primary difference between finance and accounting? - ANSWER-Finance focuses on the future, while accounting ...

What are the three areas of finance? - ANSWER-Business finance (Also known as managerial finance, financial management and organizational finance) Investments Financial institutions What is the main difference between finance and accounting? - ANSWER-Finance is forward-looking, accounting i...

Accounting - ANSWER-The system of recording, reporting, and summarizing past financial information and transactions Accounts Receivable Turnover (AR Turnover) - ANSWER-An activity ratio found by credit sales divided by accounts receivable. credit sales/accounts receivable Activity Ratios - AN...

Unit 2 (Module 1) What area of finance involves deciding which assets to invest in to create wealth in the future? - ANSWER-Unit 2 Investments (Investments are an area of finance that involves deciding which assets to invest in to create wealth in the future.) Hannah is the financial man...