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WGU D076 - Pre-Assessment Questions and Answers with Excel Problems 2024 Update Already Passed 1 / 3
Pre-Assessment 1 In which way is accounting different from finance?• 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.• Accounting forecasts future performance, given the past, while finance records past performance.• Correct Accounting is backward looking, while finance is focused on the future.2 What is the main question that both individuals and companies must consider when making financial decisions to reach a goal?• Correct Will the benefits of the action outweigh the costs?• Will utility be maximized through this decision?• Will this decrease the amount of cash available?• Will this decision require debt or equity financing?3 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?• Correct Making financing decisions • Making investment decisions • Managing working capital • Managing interdepartmental loans 4 How can investing help a person reach personal 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 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.5 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 • Correct Primary market Money market • Secondary market 2 / 3
6 Which type of economic indicator changes after the economy changes and helps identify trends in the long term?• Yield curve indicator • Correct Lagging indicator • Leading indicator • Coincident indicator 7 How does an investment institution, such as a mutual fund, facilitate the circulation of money in the economy?• By accepting deposits of money, paying interest on deposits, and providing loans to individuals and organizations • By raising capital on a contractual basis, such as an insurance contract Correct 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 8 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 Correct Leading indicator 9 Suppose an individual does not eat chocolate because eating chocolate goes against personal beliefs. Which type of standard is this?• Ethical Correct Moral Legal • Financial 10 Which action is based upon moral standards?• 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).• 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.
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