WGU D076 Test Answers | 50 Questions with 100% Correct Answers | Verified | Latest Update
Question : Which area of finance deals with sources of
funding and the capital structure of corporations and seeks to increase the value of a firm to its owners?Financial institutions Business finance Investments Real estate
Correct answer: Business finance is the area of finance that
deals with uses and sources of funding to increase the value of the firm.
Question : What is the primary difference between finance
and accounting?Accounting focuses on the future, while finance is generally backward-looking.Finance provides financial data to decision makers, and accounting involves making decisions using that data.
Accounting involves investing and forecasting, while finance summarizes a company's financial information.Finance focuses on the future, while accounting is generally backward-looking.
Correct answer: Finance focuses on the future, while
accounting is generally backward-looking. Finance is the management and allocation of capital with the objectives of investing, forecasting, budgeting, saving, lending, and borrowing.
Question : Which subspecialty of finance primarily involves
deciding which assets will create more wealth and earn positive returns?Accounting Financial institutions Capital structure Investments
Correct answer: Investments. Investments is the area of
finance that seeks to create wealth in the future by deciding where to allocate money.
Question : What is the primary goal of the financial manager
of a firm?To minimize the asset holdings of the firm To minimize the costs of the firm To maximize owner wealth To maximize the manager's utility
Correct answer: To maximize owner wealth. The financial
manager should make decisions based on the primary goal of maximizing owner wealth.
Question : What should be the main question a firm asks
when considering any investment decision?
Correct answer: Do the benefits of this investment outweigh
the costs? For any investment, you should expect to receive a benefit worth at least as much as the initial cost.
Question : What is the primary aim of personal finance goals?
Correct answer: To maximize satisfaction from products
purchased and services obtained
Question : Which task does a financial manager perform
when choosing to obtain a loan to purchase a piece of equipment for a new project?Making credit standard decisions Making investment decisions Making inventory control decisions Making financing decisions
Correct answer: Making financing decisions. The manager is
deciding where to get the funds to support a new project, which means the manager is making a financing decision.
Question : Which financial career focuses on investing capital
into firms whose shares are not currently sold on any public stock exchange?Private equity Financial planning Insurance Corporate finance