WGU D076 PA UPDATED Actual Exam Questions and CORRECT Answers
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Course
WGU D076 PA
Institution
WGU D076 PA
WGU D076 PA UPDATED Actual Exam
Questions and CORRECT Answers
In which way is accounting different from finance?
-Accounting is backward looking, while finance is focused on the future.
-Accounting is about budgeting, saving, and borrowing, while finance is about investing,
forecasting, and ...
WGU D076 PA UPDATED Actual Exam
Questions and CORRECT Answers
In which way is accounting different from finance?
-Accounting is backward looking, while finance is focused on the future.
-Accounting is about budgeting, saving, and borrowing, while finance is about investing,
forecasting, and lending.
-Accounting is focused on allocating capital, while finance is focused on bringing in capital.
-Accounting forecasts future performance, given the past, while finance records past
performance. - CORRECT 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 utility be maximized through this decision?
-Will this decision require debt or equity financing?
-Will the benefits of the action outweigh the costs?
-Will this decrease the amount of cash available? - CORRECT 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?
-Managing interdepartmental loans
-Making investment decisions
-Managing working capital
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 provides a guaranteed future outcome in order to predictably meet 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. - CORRECT 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?
-Money market
-Secondary market
-Primary market
Which type of economic indicator changes after the economy changes and helps identify
trends in the long term?
-Leading indicator
-Yield curve indicator
-Coincident indicator
How does an investment institution, such as a mutual fund, facilitate the circulation of money
in the economy?
-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
-By insuring deposits in investment accounts up to $250,000 to promote public confidence
-By accepting deposits of money, paying interest on deposits, and providing loans to
individuals and organizations - CORRECT ANSWER- ✔✔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?
-Lagging indicator
-Correlated indicator
-Coincident indicator
Suppose an individual does not eat chocolate because eating chocolate goes against his
personal beliefs. Which type of standard is this?
-Ethical
-Moral
-Legal
-Financial - CORRECT ANSWER- ✔✔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.
-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 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.
-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). - CORRECT ANSWER- ✔✔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?
-Separate owners from management so their interests do not conflict
-Encourage manipulation of accounting procedures to optimize the company's profit
-Set strict covenants that the company cannot uphold if it chooses a risky project
-Release managers who do not attempt to maximize immediate shareholder value -
CORRECT ANSWER- ✔✔Set strict covenants that the company cannot uphold if it chooses
a risky project
What is the term for an individual's beliefs concerning what is and is not acceptable to
personally do?
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