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FIN Exam 1 Questions and Complete Solutions Graded A+
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FIN Exam 1 Questions and Complete Solutions Graded A+
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FIN Exam 1Questions and
Complete Solutions
Graded A+
Denning [Date] [Course title]
, Finance - Answer: the study of applying specific value to the thing we own, services we buy and
decisions we make
Capital - Answer: money and other forms of financing the create wealth
What does a balance sheet balance? - Answer: A= L+ E
How do we categorize economic participants in financial markets? - Answer: Capital and/or idea
Which financial participants are engaged in financial markets? - Answer: Type 2: capital/no idea
Type 3: no capital/idea
What are the four sub areas of finance? - Answer: -financial markets
-investments
-institutions of market
-international
Financial Markets - Answer: involves decisions around acquiring and utilizing cash received from
investors or from retained earnings--where you get capital--where we get our money
Investments - Answer: involves methods and techniques to make appropriate decisions about what
kinds of securities to own, which firms' securities to buy--securities
Financial Institutions and Markets - Answer: the organizations and structures that facilitate the flow of
capital between economy's participants
International Finance - Answer: the application of Finance theory in a global business environment
Similarities between finance and accounting - Answer: both looking at financial statement
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