DECA terms Flashcards
DECA Terms for Districts and such
Accounting
The practice and body of knowledge concerned with recording transactions, keeping financial records, performing audits, advising on taxation issues, and reporting financial information.
Audit
Process that occurs in order to verify that a company is in fact in compliance with the applicable rules and regulations. This involves the sometimes uncomfortable scrutinization of a company’s documents and operations.
Break Even Point
Occurs when the inputs and outputs of a business are equal and a profit is being neither made nor lost.
Capital Gain or Loss
The difference between the sales price and the purchase price of an asset; this could be either positive or negative.
Compliance
Conforming to a rule, policy, standard, or law.
Corporate Responsibility
Requirements imposed to ensure that a company is acting responsibly and ethically.
Cost Accounting
Helps advise managers on the best course of action based on cost efficiency and capability.
Data Mining
The automatic or semi-automatic computational process of discovering patterns in large data sets.
Dodd-Frank Reform Act
Legislation which brought the most significant changes to financial regulation since the regulatory reform during the Great Depression.
Ethics
Relates more to whether a company has a code of conduct or a code of values that describe the way in which the company and its employees are expected to act and behave.
Federal Trade Commission
An agency of the United States government that focuses on promoting a competitive market and protecting consumers from false advertising and unfair business practices.
Financial Statement
Documentation that provides information about the performance and changes in the fiscal position of an enterprise.
Gramm-Leach Bliley Act
This legislation requires financial-service providers to explain their information-sharing practices and to safeguard sensitive data.
Insurance
Traditional risk-financing tool used to transfer the financial hazard of risk.
Opportunity
The possibility that an event will occur and positively affect the achievement of objectives.
Regulation
Has the same force of law as a traditional piece of legislation; they are rules that an authoritative body, such as a federal agency, created. Failure to comply will result in facing penalties or other consequences.
Risk
A probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action.
Risk Management
Policies, procedures, and practices involved in the identification, analysis, assessment, and control of any negative occurrence in an effort to mitigate or eliminate such hazards.
Risk Management Policy
An organization’s written statement that sets out its approach to an appetite for any hazard or negative occurrence.
Sarbanes-Oxley Act
Legislation passed in 2002 by Congress that requires significantly tighter responsibilities for corporations when reporting financial statements, and it also requires a company’s CEO or CFO to certify all external financial reports.
