Principles of Finance
-DSST Test
Principles of Finance DSST
Test Version 2
The DSST Practice Tests above contain 438 multiple-choice practice test questions with study guides (detailed explanations).
The ACE (American Council on Education) recommends 3 upper or lower level college
credits for this exam.
Studying, and passing, the practice tests above will allow you to
confidently take and pass your Principles of Finance DSST test. The overall
key concepts, and specific individual points, that will allow you to pass your
test are within the practice questions and detailed explanations.
Course Information and Overview
This exam covers material that is typically taught in a semester introductory-level college course. The multiple-choice DANTES/DSST exam consists of about 100 questions and allows two hours to complete.
The Principles of Finance DSST/DANTES exam contains questions that come from the following topics:
- Financial Statements and Planning (20%)
Financial Statement Fundamentals (statements of owner's equity, balance
sheet, cash flows)
Analysis of ratios
Taxes
- Time Value of Money (20%)
Values of money including Present Value and Future Value
Defining annuities
Calculating interest rates
- Working Capital Management (10%)
Short and long-term funding options
Managing assets
Budgeting
- Valuation and Characteristics of Stocks and Bonds (9%)
Stocks (preferred and common)
Bonds
- Capital Budgeting (12%)
Forecasting and projections
Capital assets
Financial analysis and tools
Sensitivity and break-even analysis
Definitions: Net Present Value (NPV), payback, Rate of Return (RoR)
- Cost of Capital (11%)
Costs of debt, costs of equity
Weighted averages of capital
- Risk and Return (11%)
Measuring risk
Determining interest rates
Diversification
Definitions: Security Market Line (SML) and Capital Asset Pricing Model
(CAPM)
- International Financial Management (7%)
Hedging
Exchange rates
Analysis of financial markets
Complete information and a fact sheet (PDF Format) of what is covered is available from
Prometric.