NOCTI: Financial and Investment Planning Practice
Questions and Answers (100% Pass)
The balance according to the bank statement is $35,782. Outstanding
checks total $19,573. Deposits in transit total $7,210. What is the
adjusted bank balance? - ANSWER -$23,419
An invoice dated on March 10 with the terms 3/60, n/90 means that a 3
percent discount will be given if the invoice is paid on or before -
ANSWER -May 9
What is a non-taxable source of income? - ANSWER -Child support
payments
What are examples of good accounting skills? - ANSWER --business
knowledge
-tech. skills
-communication skills
-leadership
Top Five Skills? - ANSWER --big data analysis
-coding and programing
-project management
-social media experience
-technical writing
Asset - ANSWER -property owned by a person or company, regarded
as having value and available to meet debts, commitments, or legacies.
Equity - ANSWER -the value of the shares issued by a company.
, Liability - ANSWER -a thing for which someone is responsible,
especially a debt or financial obligation.
Capital - ANSWER -wealth in the form of money or other assets owned
by a person or organization or available or contributed for a particular
purpose such as starting a company or investing.
Investment - ANSWER -The action of process of investing money for
profit or material result.
Stock - ANSWER -the goods or merchandise kept on the premises of a
business or warehouse and available for sale or distribution.
Balance Sheet - ANSWER -a statement of the assets, liabilities, and
capital of a business or other organization at a particular point in time,
detailing the balance of income and expenditure over the preceding
period.
Income Statement - ANSWER -A financial statement showing the
revenue and expenses for a fiscal period.
Statement of Cash Flows - ANSWER -A financial statement that
provides financial information about the cash receipts and cash
payments of a business for a specific period of time.
Statement of Owner's Equity - ANSWER -record of the change in
owners' equity from the end of one fiscal period to the end of the next
, Net income - ANSWER -the difference between total revenue and total
expenses when total revenue is greater
Bond - ANSWER -A debt instrument, a bond is essentially a loan that
you are giving to the government or a company in exchange for a pre-set
interest rate.
Stock - ANSWER -A type of investment that gives you partial
ownership of a publicly traded company.
Mutual Fund - ANSWER -An investment vehicle that allows you to
invest your money in a professionally-managed portfolio of assets that,
depending on the specific fund, could contain a variety of stocks, bonds,
or other investments.
Exchange-traded fund (ETF): - ANSWER -Funds - sometimes referred
to as baskets or portfolios of securities - that trade like stocks on an
exchange. When you purchase an ETF, you are purchasing shares of the
overall fund rather than actual shares of the individual underlying
investments.
asset allocation - ANSWER -This refers to how you divide up your
portfolio among different asset classes, such as stocks, bonds, and cash
alternatives, to help you work toward your financial goals.
Diversification - ANSWER -This is the practice of spreading your
money across different investments to reach your desired asset
allocation.
Questions and Answers (100% Pass)
The balance according to the bank statement is $35,782. Outstanding
checks total $19,573. Deposits in transit total $7,210. What is the
adjusted bank balance? - ANSWER -$23,419
An invoice dated on March 10 with the terms 3/60, n/90 means that a 3
percent discount will be given if the invoice is paid on or before -
ANSWER -May 9
What is a non-taxable source of income? - ANSWER -Child support
payments
What are examples of good accounting skills? - ANSWER --business
knowledge
-tech. skills
-communication skills
-leadership
Top Five Skills? - ANSWER --big data analysis
-coding and programing
-project management
-social media experience
-technical writing
Asset - ANSWER -property owned by a person or company, regarded
as having value and available to meet debts, commitments, or legacies.
Equity - ANSWER -the value of the shares issued by a company.
, Liability - ANSWER -a thing for which someone is responsible,
especially a debt or financial obligation.
Capital - ANSWER -wealth in the form of money or other assets owned
by a person or organization or available or contributed for a particular
purpose such as starting a company or investing.
Investment - ANSWER -The action of process of investing money for
profit or material result.
Stock - ANSWER -the goods or merchandise kept on the premises of a
business or warehouse and available for sale or distribution.
Balance Sheet - ANSWER -a statement of the assets, liabilities, and
capital of a business or other organization at a particular point in time,
detailing the balance of income and expenditure over the preceding
period.
Income Statement - ANSWER -A financial statement showing the
revenue and expenses for a fiscal period.
Statement of Cash Flows - ANSWER -A financial statement that
provides financial information about the cash receipts and cash
payments of a business for a specific period of time.
Statement of Owner's Equity - ANSWER -record of the change in
owners' equity from the end of one fiscal period to the end of the next
, Net income - ANSWER -the difference between total revenue and total
expenses when total revenue is greater
Bond - ANSWER -A debt instrument, a bond is essentially a loan that
you are giving to the government or a company in exchange for a pre-set
interest rate.
Stock - ANSWER -A type of investment that gives you partial
ownership of a publicly traded company.
Mutual Fund - ANSWER -An investment vehicle that allows you to
invest your money in a professionally-managed portfolio of assets that,
depending on the specific fund, could contain a variety of stocks, bonds,
or other investments.
Exchange-traded fund (ETF): - ANSWER -Funds - sometimes referred
to as baskets or portfolios of securities - that trade like stocks on an
exchange. When you purchase an ETF, you are purchasing shares of the
overall fund rather than actual shares of the individual underlying
investments.
asset allocation - ANSWER -This refers to how you divide up your
portfolio among different asset classes, such as stocks, bonds, and cash
alternatives, to help you work toward your financial goals.
Diversification - ANSWER -This is the practice of spreading your
money across different investments to reach your desired asset
allocation.
