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D076 Test Answers 2024 latest update (graded A+)
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D076 Test Answers 2024 latest update (graded A+)
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D076 Test Answers2024 latest update
(graded A+)
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 investing,
forecasting, and lending. - 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?
Will the benefits of the action outweigh the costs?
Will this decision require debt or equity financing?
Will utility be maximized through this decision? -
answer 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
Making investment decisions
Managing interdepartmental loans - answer
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.
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. - answer 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?
Efficient market
, Secondary market
Money market
Primary market - answer Primary market
Which type of economic indicator changes after the
economy changes and helps identify trends in the
long term?
Yield curve indicator
Leading indicator
Coincident indicator
Lagging indicator - answer Lagging indicator
How does an investment institution, such as a
mutual fund, facilitate the circulation of money in
the economy?
By insuring deposits in investment accounts up to
$250,000 to promote public confidence
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
- answer By providing individuals and firms access
to financial markets to buy or sell financial
securities
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