WGU D076 EXAM LATEST EXAM | ALL
QUESTIONS AND CORRECT ANSWERS
| ALREADY GRADED A+ | VERIFIED
ANSWERS | JUST RELEASED
The financial market where securities (stocks and/or bonds) are first
sold.Go To ------CORRECT ANSWER---------------Primary Market
A financial institution that invests in an entity that is not publicly listed or
traded using money received from institutional investors and wealthy
individuals.Go To ------CORRECT ANSWER---------------Private Equity
Firms that have not issued shares to the public where the ownership rights
are privately held.Go To ------CORRECT ANSWER---------------Privately
Held Companies
A financial statement that projects an estimate for future periods "as if"
sales grew as predicted.Go To ------CORRECT ANSWER---------------Pro
Forma Statements
The projection of future earnings after all projected costs are subtracted
from projected sales.Go To ------CORRECT ANSWER---------------Profit
Forecasting
The ratio of payoff to investment for a proposed project.Go To ------
CORRECT ANSWER---------------Profitability Index (PI)
,A category of ratios that are commonly used to directly judge how well
management is doing as they strive to maximize owner wealth.Go To ------
CORRECT ANSWER---------------Profitability Ratios
Firms that have issued shares to the public.Go To ------CORRECT
ANSWER---------------Publicly Traded Firms
A liquidity ratios found by current assets less inventory, divided by current
liabilities; also called the acid-test ratio.Go To ------CORRECT ANSWER----
-----------Quick Ratio
An interest rate that is adjusted to remove the effects of inflation.Go To -----
-CORRECT ANSWER---------------Real Rate
The minimum return or compensation an investor requires in order to
invest; see interest rate.Go To ------CORRECT ANSWER---------------
Required Rate of Return
The business function responsible for improving and developing services
and products.Go To ------CORRECT ANSWER---------------Research and
Development
The percent of net income retained in the firm; also called the plowback
ratio.Go To ------CORRECT ANSWER---------------Retention Ratio
,The money gained or lost on an investment over a certain period of
time.Go To ------CORRECT ANSWER---------------Return
A profitability ratio found by net income divided by total assets.Go To ------
CORRECT ANSWER---------------Return On Assets (ROA)
A profitability ratio found by net income divided by owners' equity.Go To ----
--CORRECT ANSWER---------------Return On Equity (ROE)
The top line of the income statement. The total amount of money a
business brings in (before subtracting any costs).Go To ------CORRECT
ANSWER---------------Revenues
The possibility that the realized or actual return will differ from the expected
return.Go To ------CORRECT ANSWER---------------Risk
A way to manage risk by not performing an activity that may carry risk.Go
To ------CORRECT ANSWER---------------Risk Avoidance
The compensation for the amount of risk taken on by investors.Go To ------
CORRECT ANSWER---------------Risk Premium
, A series of techniques that help reduce the amount of risk a person is
exposed to by taking a particular action.Go To ------CORRECT ANSWER---
------------Risk Reduction
A decision to take responsibility for a particular risk.Go To ------CORRECT
ANSWER---------------Risk Retention
A risk management technique that involves dispersing assets
geographically instead of concentrating them in one location.Go To ------
CORRECT ANSWER---------------Risk Separation
A risk management technique that involves reducing the amount of risk you
are exposed to by transferring that risk to another entity.Go To ------
CORRECT ANSWER---------------Risk Transfer
The rate of return on an investment with no risk.Go To ------CORRECT
ANSWER---------------Risk-free Rate
The top line of the income statement. The total amount of money a
business brings in (before subtracting out any costs).Go To ------CORRECT
ANSWER---------------Sales
Firms whose performance varies according to the season.Go To ------
CORRECT ANSWER---------------Seasonal Firms
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