D076 Test Questions and Answers with Verified Solutions

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D076 Test Questions and Answers with Verified Solutions In which way is accounting different from finance? Accounting is backward looking, while finance is focused on the future. Accounting is foc... used 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 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? ✔✔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 ✔✔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. ✔✔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 [Show More]

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