Finance Skills for Managers - D076 Questions and Correct Answers
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Finance Skills
Institution
Finance Skills
Finance Skills for Managers - D076 Questions
and Correct AnswersFinance Skills for Managers - D076 Questions
and Correct AnswersFinance Skills for Managers - D076 Questions
and Correct AnswersFinance Skills for Managers - D076 Questions
and Correct AnswersFinance Skills for Managers - D076 ...
Finance Skills for Managers - D076 Questions
and Correct Answers
In which way is accounting different from finance?
✓ ~~~ 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?
✓ ~~~ Will 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
How can investing help a person reach personal financial goals?
✓ ~~~ It 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
, Which type of economic indicator changes after the economy changes and helps
identify trends in the long term?
✓ ~~~ Lagging 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
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?
✓ ~~~ Leading indicator
Suppose an individual does not eat chocolate because eating chocolate goes
against his personal beliefs. Which type of standard is this?
✓ ~~~ Moral
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.
What should a potential bondholder (lender) do to prevent a company (borrower)
from taking on risky projects?
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