DECA Flashcards
Finance Cluster
Which of the following statements regarding corporate governance is true?
Corporate governance keeps any one person from having too much control.
Which of the following may happen if a business cuts costs?
It may pay fewer taxes.
What is the relationship between financial information and lean-focused organizations?
Financial information provides ways to reduce wasted resources.
What is a benefit to businesses of using a central data repository for financial information?
Quick response to complex queries.
A financial institution fails to comply with an important government regulation. What is the likely consequence?
Pay a fine.
Ethical accounting professionals avoid conflicts of interest by:
Behaving independently.
Julie’s grandparents have offered her a $1,000 gift at either the beginning or end of college. Why should she take the gift at the beginning?
She can start earning interest sooner.
In corporate governance, oversight of management, segregation of control, and policy development are all examples of:
Internal control mechanisms.
When writing an executive summary, be sure that you:
Make the summary at least 1/10th as long as the full report.
What is a true statement about a project plan?
It is a road map.
What type of financial market structure involves trading unlisted stock via a dealer network?
Over-the-counter.
What is the first step in designing a multi-table query?
Pinpoint exactly what you want to know.
Which of the following most likely led to a greater emphasis on governance structures in recent years?
Accounting fraud.
Why is the performance of the stock market used as a leading indicator of the business cycle?
Investors tend to sell stocks during an economic contraction and buy during recovery.
When choosing a new vendor for your business, it is best to:
Use a formal selection process.
Which of the following increases your personal net worth?
Owning a home.
Why would a bank examine a business’s balance sheet?
To determine whether the company qualifies for additional credit.
What source of credit offers its members small loans, installment credit, and low-interest rates?
Credit unions.
How can a company protect its name from being imitated by others?
Obtain trademark protection.
What type of analytics is used when a company analyzes data from past sales periods to make future product release decisions?
Predictive analytics.
A business can protect its computerized financial data from losses associated with fire, flood, and outages by:
Performing backup procedures on a regular basis.
Which component is important to include in all types of inquiry letters?
Contact information.
What is one reason why event planners take steps to control and limit the possibility of risk?
To avoid liability.
A company analyzing inflation most likely does so to:
Negotiate labor contracts.
What ethical issue is most likely to cause hazard risks?
Unsafe working conditions.
What is a common result of supply chain collaboration?
Reduced overall costs.
What is a benefit of positive customer relations in business?
Avoiding wasted time and resources.
Financial information that a credit card issuer analyzes when reviewing customers’ applications includes:
Payment history and current level of debt.
To effectively participate in a staff meeting, you should:
Read important documents and do research ahead of time so you’re prepared.
Which of the following securities is commonly used to help reduce the impact of significant fluctuations in exchange rates and commodities?
Derivatives.
What type of divisional structure is most appropriate for a company that sells lumber products to different customer types?
Customer type.
Why is it important to determine the root cause of variances in financial statements?
To make the appropriate adjustments.
What is a key benefit of incorporating technology into compliance processes?
Reduce costs.
Which organization operates at a local level to support businesses?
Seattle Metropolitan Chamber of Commerce.
What is the purpose of the common job interview question, ‘Tell me about yourself’?
To test the applicant’s communication skills.
What is the best way to automatically track bank account withdrawals and deposits?
Use a mobile banking or budgeting app.
How can businesses protect archived financial information?
By implementing storage strategies.
What action should an employee take when receiving constructive criticism at work?
Improve their ability to do the job.
Which statement best describes the taxation of Roth IRAs?
Contributions are taxed, but withdrawals during retirement are not.
What should a business use to determine upcoming bills due in the next 10 days?
Accounts payable.
When giving a presentation, how can graphic aids help?
They enhance the presentation.
What type of fraud involves taking advantage of a shared affiliation, such as religion or clubs?
Group affinity fraud.
What is a common result of ethical business behavior?
Many customers are more willing to support companies that act ethically.
What type of analytics uses historical data to predict future trends?
Predictive analytics.
What is the most appropriate action for Patricia when dealing with a new coworker who is unfamiliar with technology?
Try to teach the new coworker how to use technology.
What action should a company take to reduce legal risks with business partners?
Sign a formal contract.
What process ensures financial transactions are accurately recorded and verified?
Reconciliation.
What is an important ethical consideration for financial professionals?
Avoiding conflicts of interest.
What financial metric do banks evaluate before issuing credit?
Payment history and current level of debt.
What should an entrepreneur do if they are uncertain about a business decision?
Tolerate ambiguity.
Which budgeting software tool helps business owners evaluate different sources of funding?
Debt modeling.
What factor best influences international trade potential?
A country with a long coastline.
What governance strategy helps businesses achieve corporate transparency?
Encouraging employee participation at board meetings.
Which process ensures fair and unbiased vendor selection?
A formal selection process.
What major expense do businesses often incur?
Payroll.
What is an important reason businesses monitor inflation?
To negotiate labor contracts.
What step should a business take to prevent financial data loss?
Perform regular backup procedures.
What concept explains the diminishing returns of adding more workers to a production process?
Law of diminishing returns.
What type of financial institution takes deposits and offers loans?
Credit unions, savings and loan associations, and commercial banks.
What action demonstrates a manager accepting responsibility for their decisions?
Acknowledging the risks and accepting the consequences of failure.
What is a common result of supply chain collaboration?
Reduced overall costs.
What financial metric do banks analyze to determine if a company qualifies for credit?
The company’s balance sheet.
What is a critical component to include in all types of inquiry letters?
Contact information.
What financial market structure involves trading unlisted stock via a dealer network?
Over-the-counter (OTC).
What security is commonly used to reduce the impact of exchange rate and commodity fluctuations?
Derivatives.
What is the first step in designing a multi-table database query?
Pinpoint exactly what you want to know.
Which organization has placed greater emphasis on governance structures in recent years?
Accounting fraud incidents led to the change.
What is an important skill for employees to develop when exposed to conflicting viewpoints?
Improved communication skills.
What is the purpose of business risk management?
To identify and minimize financial uncertainties.
Why is enterprise risk management important?
It helps safeguard a business from operational, financial, and reputational risks.
How can a company protect its name from being copied by competitors?
Obtain trademark protection.
Which financial document reflects changes in an owner’s equity?
Statement of changes in owner’s equity.
What is the process of matching a company’s internal financial records to its bank statement?
Reconciling.
What should an entrepreneur do before launching a new product?
Conduct a marginal analysis to assess the costs and benefits.
How do financial professionals ensure accurate financial reporting?
By adhering to Generally Accepted Accounting Principles (GAAP).
What does an effective project plan function as?
A road map.
How does corporate social responsibility impact consumer behavior?
Many customers are more willing to support companies that act ethically.
What is an important step when resolving disputes in the workplace?
Identifying the problem.
What financial institution offers small loans, installment credit, and low-interest rates to members?
Credit unions.
Why do businesses monitor inflation trends?
To negotiate labor contracts.
What financial security represents ownership in a company?
Stocks.
What is the best way for a company to handle constructive criticism?
Improve the ability to do the job.
What type of fraud involves convincing members of a group to invest in a scam?
Group affinity fraud.
What factor helps businesses analyze past sales trends to make predictions?
Predictive analytics.
What type of data security strategy helps businesses protect financial records?
Storage strategies.
What factor allows a country to participate in international trade effectively?
A long coastline.
Why do businesses use enterprise risk management?
To safeguard against financial and operational risks.
How can an entrepreneur handle uncertainty in business decisions?
By tolerating ambiguity.
What is a key purpose of an accounting information system?
To support operational decision-making.
Why is it important for businesses to perform financial forecasting?
To anticipate future expenses and revenues.
What major expense do businesses need to manage carefully?
Payroll.
What type of legal document helps businesses avoid contract disputes?
A formal contract.
What process should businesses use to select new vendors?
A formal selection process.
What financial document is most important for evaluating a company’s profitability?
Income statement.
What economic concept explains why increasing employees may reduce efficiency?
The law of diminishing returns.
What step should a manager take to ensure accountability for business decisions?
Accept responsibility for the decision.
How does positive customer relations impact business productivity?
Avoiding wasted time and resources.
What is a major factor in assessing an applicant’s creditworthiness?
Payment history and current level of debt.
Why would a company analyze customer demographics?
To tailor marketing strategies effectively.
How can a company improve financial security when making online payments?
Use PIN debits.
