NAF Exam Study Guide
Account reconciliation Correct Answers Is a process that
compares two sets of forms to make sure they correspond
Account summary Correct Answers Gives you a quick
snapshot of your beginning balance, your total deposits and
withdrawals, (money taken out of the account), the total service
charges and/or feeds, and you ending balance for the specific
statement record dates
Acquisition Correct Answers When one company takes over
another company
APR Correct Answers Annual Percentage Rate, tells him how
much the credit will cost him on a yearly basis
Assets Correct Answers Anything you own that has monetary
value, (car, house, phone)
Bank Statement Correct Answers A document issued by a bank
to its customers
Bonds Correct Answers Loans that investors make to
corporations or governments; they pay you interest over a
specified amount of time.
Budget Correct Answers Way to keep track of money;
financial plan
, Business Risk Correct Answers Associated with investing, risk
involved with the soundness of the business, (how well it is
doing).
Businesses must be prepared to adapt to many types of changes
in the environment Correct Answers Technological innovation
Demographic and societal trends
Government rules and regulations
Globalization of business
Capital Correct Answers A business's cash or property
Cash flow Correct Answers How your money comes and goes
Checking account Correct Answers Allows you to write checks
against the money in the account.
Compound interest Correct Answers Refers to the interest that
you earn on your money. The processor compounding refers to
earning interest on your interest. (exponential)
Corporation Correct Answers Business organization that
operates as an entity separate from and independent of its
owners. Follows corporate bylaws, rules. Starting a corporation
is a detailed process and they are divided into stocks. Easier to
gain capital
Credit Correct Answers Money received
Credit Unions Correct Answers Financial institutions formed
by an organized group of people with a common bond, such as
Account reconciliation Correct Answers Is a process that
compares two sets of forms to make sure they correspond
Account summary Correct Answers Gives you a quick
snapshot of your beginning balance, your total deposits and
withdrawals, (money taken out of the account), the total service
charges and/or feeds, and you ending balance for the specific
statement record dates
Acquisition Correct Answers When one company takes over
another company
APR Correct Answers Annual Percentage Rate, tells him how
much the credit will cost him on a yearly basis
Assets Correct Answers Anything you own that has monetary
value, (car, house, phone)
Bank Statement Correct Answers A document issued by a bank
to its customers
Bonds Correct Answers Loans that investors make to
corporations or governments; they pay you interest over a
specified amount of time.
Budget Correct Answers Way to keep track of money;
financial plan
, Business Risk Correct Answers Associated with investing, risk
involved with the soundness of the business, (how well it is
doing).
Businesses must be prepared to adapt to many types of changes
in the environment Correct Answers Technological innovation
Demographic and societal trends
Government rules and regulations
Globalization of business
Capital Correct Answers A business's cash or property
Cash flow Correct Answers How your money comes and goes
Checking account Correct Answers Allows you to write checks
against the money in the account.
Compound interest Correct Answers Refers to the interest that
you earn on your money. The processor compounding refers to
earning interest on your interest. (exponential)
Corporation Correct Answers Business organization that
operates as an entity separate from and independent of its
owners. Follows corporate bylaws, rules. Starting a corporation
is a detailed process and they are divided into stocks. Easier to
gain capital
Credit Correct Answers Money received
Credit Unions Correct Answers Financial institutions formed
by an organized group of people with a common bond, such as
