| A | B |
|---|
| Electronic machines that allow customers to conduct accounting realated activities 24 hrs a day, 7 days a week | ATM |
| Through a federal agency the government guarentees deposits up tp | $100,000 |
| The FED's board of governers consists of how many members appointed by the president | 7 members |
| Each member of the FED's board of governers is appointed for how many years | 14 |
| The amount of checks written but not yet cleared thorught the federal reserve is | the float |
| What happens when the money supply grows to large | inflation |
| The percentage of deposits a bank must hold wotha federal reserve bank | reserve requirements |
| The federal reserves authority to set margin requirements for consumer stock purchases ans specidied other restrictions regarding the purchase of consumer goods on credit | selective credit controls |
| The largest bank in the world is | Bank of Tokyo |
| The american Institute of certified public accountants has recently enacted new rules to | provides a checklist of risk factors |
| A comprhensive system of collecting, analyzing & communication financial information is | accounting |
| Sammy is recording buisness transactions in computerized ledgers & terminal. He is engaging in | book keeping |
| The field of accounting which is concernef with external users of a company financial information is called | financial accounting |
| Which of the following would expand the money supply | decrease reserve requirements |
| The field of accounting which is concerned with internal users of companies finacial information is called | managerial accounting |
| Laura is preparing annual income strategies & balence sheets for her company as a whole. This field of accounting is | finnancial accounting |
| David is preparing of estimating profits & losses for a new product which has just been introduced by the company. This field of accounting is | managerial accounting |
| Rose has passed an intense 3-day exam & is preparing to offer his services to small companies, she has engaged in | public accounting |
| An examination if a companies accounting system to determine wheter the financial reports fairly present it's operating is best described as | auditing |
| Which of the following is not considered a major CPA firm | standard & poors |
| Slightly more than what % of all US accountants are woman | 50 |
| Initial records are usually entered into a | journal |
| Immediate records are summerzed & stored in a | ledger |
| Which of the following is unique to ledgers | balance column |
| The accounting equation is | assets= liabilities + owners equity |
| Any economic resourse expected to benifit a firm or the individual who owns it | asset |
| A debt owed by a firm to an outside organization or individual is a | liability |
| The amount of money owners will recieve if they sold all of a firms assets & paid all of it's liabilities | owners equity |
| Under which condition is owners equity positive | when assets are greater than liabilities |
| Under which condition is owners equity negative | liabilities are greater than assets |
| Which of the following ensures that the accouting equation is always kept in balance | double-entry accounting |
| Land, building, & equipment should be placed in which asset catagory | fixed assets |
| The correction in the value of buildings & equipment which reflects their wearing out is called | depreciation |
| Non-physical assets such as a patent or trademark that have economic value in the form of an expected benifit are | intangible assets |
| Which of the following items does not belong | depreciation |
| Another name for the current ratio is | bankers ratio |
| Another name for long-term solvenly ratio's is | debt rations |
| The debt-to-equity ratio measures a firms ability to meet | all liabilities |
| As a rule of thumb the debt-to-equity ration should be about | 1 |
| Which of the following calculates the debt-to-equity ratio | total liabilities/owners' equity |
| What does the earnings per share ratio measure | the size of the dividends that a company could pay to common shareholders |
| How is the earnings per share calculated | Net income dividend by the number of common shares outstanding |
| If todays currency wears out it can be replaced thus demonstrating that it is | durable |
| An economy where goods are exchanged directly for one another is ___ economy | barter |
| With out money, we would be bogged down in a system of barter. This illustrates what function of money | medium of exchange |
| All products can me valued & measured in terms of dollars. This illustrates | unit of account |
| which of the following is false regarding M-1 | it includes M-2 |
| Certificates of deposit & savings certificates are examples of | time deposits |
| Short-term, low risk financial securities purchaced with the assets of invester-owners pooled by a non-bank instituation | money market mutual fund |
| Time deposits represent about ___% of the money supply | 25% |
| Bank profits are up to ___times higher with credit cards than those from other forms of banking | 3 times |
| The intrest rate-available to a banks most credit worthy customers is the | prime rate |
| A financial Institution accepts deposits & makes loans primarily for home morgages is a | savings & loans associations |
| A financial institution which accepts deposits & makes loans primarily for home marogages & whose deposits are also owners of the insitution is a | mutual savings bank |
| Every monthly bill adds to a savings accout with a financial institution which makes loans for homes, the only money he makes from the institution is intrest on his savings. The financial institution is most likely a | savings & loan association |
| A non-deposit financial istitution pools funds from it's members to provide retirement income for it's monitors is | pension funds |
| A non-deposit financial istitution invests funds collected as primiums to provide coverage against looses is | insurance components |
| Wich of the following os most likely to charge highest intrest rates on loans it makes | finnance company |
| The teachers insurance and annuity association (TIAA) is the largest institution in this field | pension funds |
| Merrill Lynch and & AG Edwards are examples of | securities dealers |
| A tax-deferred pension fund with which wage earners supplements them retirement funds | IRA |
| The maximum amount that can be invested in an individual retirement accounts each year is | 2,000 |
| Previously owned stocks & bonds are bought & sold in the | secondary securities markets |
| The current price of a share stock is the stock market is called the | market value |
| Investors are concerned primarily with the | market value |
| Common stock issued by a well-estabilished company with a sound finnancial history and a stable pattern of dividend payouts is a | blue chip stock |
| Stocks on which dividends not paid in the past must be paid to stock holders before dividends can be paid to other stock holders is | comulative preffered stock |
| Memberships to a stock exchange are limited and are called | seats |
| The stock exchange trading the largest number of issues is | over the counter market |
| Stock exchange that has the bigest dollar value if issues traded | NY stock exchange |
| The stock exchange that lists only the largest company s the | NY stock exchange |
| The second largest exchange which lists about 1,000 stocks is the | American stock exchange |
| Another name for low-grade bonds is | Junk bonds |
| One of the safest investments available is bonds issues by | U.S. governement |
| The most attractive feature issues by state and local governments is | taxes are not paid on intrest |
| The largest issue of bonds is | public corporations |
| The type of bond that requires the bond holder to clip coupons from the certificates and send them too the issuer in order to recieve payment | bearer bonds |
| The type of bonds that are said to have "inferior claims" on a corporations assets are | debreturves |
| A company that pools investments from individuals and organizations to purchase a porfolio of stock, bonds, and short term securities | mutual funds |
| An investment i which investors pay no sales commisions when they by in or sell out | no-load mutual funds |
| Bonds which are retired in several years instead of all at once are | serial bonds |
| Mutual funds which invest new companies or even troubled companies and other high risk securties are exphasizing | aggressive growth |
| Agreements to purchase specified amounts of commodities at a given price on a set future date are known as | future contracts |
| The percent of the total sale price a buyer must put up tp place an order for stock or purchase aggreements for commodities | margin |
| The number of shares trading on a specific stcok is usually expressed in | hundreds |
| A division of stock that gives stock holders a greater number of shares but that doesn't change each individuals proportionate share of ownershi | stock split |
| A period of generally rising stock prices | bull market |
| A period of generally falling stock prices | bear market |
| A based on the prices of 30 of the largest industrial firms listed on the NY stock exchange | DOW Lones industrial average |
| Since the early 1980's the stock market has generally been | bull market |
| A round lot is the purchase of securities in multiples of | 100 shares |
| An odd lot is the purchase of securities in multiples of less than | 100 shares |
| A stock transaction in which the investor borrows securities from a broker to be sold and then replace at a specified future date | short sale |
| Purchases of fixed assets such as land, building with machinery are | capital expendables |
| When buyers recieve merchandise along with invoices stating credit terms they have most likely been given a | open book credit |
| Collatera; would be needed in which of the following | secured loans |
