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D076 PA 2024/2025 already graded A+
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D076 PA 2024/2025 already graded A+
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D076 PAIn 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 bringing in capital.
Accounting is about budgeting, saving, and borrowing, while finance is about investing,
forecasting, and lending. - ANSAccounting forecasts future performance, given the past, while
finance records past performance.
What is the main question that both individuals and companies must consider when making
financial decisions to reach a goal?
Will this decision require debt or equity financing?
Will this decrease the amount of cash available?
Will the benefits of the action outweigh the costs?
Will utility be maximized through this decision? - ANSWill the benefits of the action outweigh the
costs?
A financial manager at a 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?
Making financing decisions
Managing working capital
Making investment decisions
Managing interdepartmental loans - ANSMaking financing decisions
How can investing help a person reach personal 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.
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. - ANSIt
provides access to potential revenue or increases in value to help meet goals faster.
A sign company is planning to have an initial public offering (IPO). In which type of market will
its stock first be sold to the public?
Primary market
Efficient market
Money market
Secondary market - ANSPrimary market
, Which type of economic indicator changes after the economy changes and helps identify trends
in the long term?
Coincident indicator
Leading indicator
Lagging indicator
Yield curve indicator - ANSLagging indicator
How does an investment institution, such as a mutual fund, facilitate the circulation of money in
the economy?
By providing individuals and firms access to financial markets to buy or sell financial securities
By raising capital on a contractual basis, such as an insurance contract
By accepting deposits of money, paying interest on deposits, and providing loans to individuals
and organizations
By insuring deposits in investment accounts up to $250,000 to promote public confidence -
ANSBy providing individuals and firms access to financial markets to buy or sell financial
securities
Which type of economic indicator is used by governments and policymakers to implement or
alter policies in an effort to avoid or minimize the effects of an economic downturn?
Lagging indicator
Coincident indicator
Correlated indicator
Leading indicator - ANSLeading indicator
Suppose an individual does not eat chocolate because eating chocolate goes against his
personal beliefs. Which type of standard is this?
Legal
Financial
Moral
Ethical - ANSMoral
Which action is based upon moral standards?
Although there is no company policy regarding it, a financial manager chooses not to accept
gifts from the company's clients to ensure that she does not create a conflict of interest.
As mandated by government regulations, a financial manager files a registration statement with
the U.S. Securities and Exchange Commission (SEC) before offering equity securities for sale.
Since it is generally accepted in the company that no personal information about clients should
be released without written permission, a financial manager denies the request for a third party
to access its data.
As outlined in the company's policies, a financial manager hires a third-party entity to review all
annual report filings to ensure they are compliant with applicable generally accepted accounting
principles (GAAP). - ANSAlthough there is no company policy regarding it, a financial manager
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