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 in...
, D076 Test Answers
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
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