DECA Finance - Hard Questions

Which of the following potential compliance issues with temporal reasoning detect? A. A travel expense has a credit balance at the end of an accounting period rather than a debit balance. B. Purchase orders 2870 from Bryan Industries and 2870a from Bryant Industries are very similar. C. A new customer recently placed an order that is three times larger than the average order. D. Jack temporarily changed a vendor file so funds destined for the vendor would instead be diverted to his personal checking account.

A. A travel expense has a credit balance at the end of an accounting period rather than a debit balance.

Which of the following statements regarding accounting and finance is correct? A Accounting focuses on the past, while finance focuses on the future. B. Accounting is much broader than finance, which focuses on investments. C. Financial managers typically report to the vice president of accounting. D. The finance department focuses on assets, while accountants track liabilities.

A. Accounting focuses on the past, while finance focuses on the future.

What type of financial statement includes an accounting of the shareholders' equity for a company? A. Balance sheet B. Income statement C. Cash flow statement D. Annual report

A. Balance sheet

Which of the following is a benefit of putting your goals in writing? A. Clarifies the goals B. Develops your perseverance C. Makes the goals attainable D. Provides a challenge

A. Clarifies the goals

Which of the following is a technique that a business could use to analyze its customer financial information: A. Compare profit ratios by region B. Tracking average product shipping delays C. Determining who exceeded sales quotas D. Discovering which products sold the most

A. Compare profit ratios by region

What type of system synchronizes sales and marketing efforts? A. Customer relationship management B. Transaction processing C. Supply chain management D. Decision support

A. Customer relationship management

Which of the following securities is commonly used to help reduce the impact of significant fluctuations in exchange rate and commodities: A. Derivations B. Stocks C. Bonds D. Real estate

A. Derivations

Which of the following financial tools is often used to identify trends: A. Financial ratios B. Accrual accounting C. Financial goals D. Actuaries

A. Financial ratios

Ingrid must analyze various aspects of the completed project by comparing the results with the objectives. What process is Ingrid likely to use to obtain all of the information for analysis? A. Internal audit B. Administrative appraisal C. Team review D. Productivity evaluation

A. Internal audit

Which of the following is the most common flaw in financial-information management: A. Non-financial managers having difficulty accessing needed financial data B. Non-financial managers are bombarded with excess financial data C. Financial-information management personnel often maintain operational data instead of financial data D. Most large companies do not have a financial-informational management system

A. Non-financial managers have difficulty accessing needed financial data

Which of the following is often cited as the most significant stumbling block in achieving compliance goals within large financial organizations? A. Poor data quality B. Lack of training C. Inadequate funding D. Crisis management

A. Poor data quality

How can a business build its customers' trust and communicate its commitment to ethical practices? A. Publish its confidentiality statement B. Develop liberal business policies C. Hire employees who have a positive attitude D. Post its earnings on the web

A. Publish its confidentiality statement

Which compliance reasoning process detects unbalanced journal entries? A. Symbolic reasoning B. Contextual reasoning C. Temporal reasoning D. Cross-source reasoning

A. Symbolic reasoning

Job interviewers often say to job applicants, "Tell me about yourself." The purpose of this request is to: A. Test the applicant's communication skills B. Test the applicant's honesty and integrity C. To find out about the applicant's personal life D. To uncover job-related problems the applicant has

A. Test the applicant's communication skills

What is the purpose of standard cost systems? A. To establish quality standards B. To evaluate performance C. To return unused inventory D. To create industry standards

A. To evaluate performance

What is the primary function of the foreign exchange market? A. To trade currency B. To sell stocks C. To buy bonds D. To underwrite policies

A. To trade currency

Tyrese and his team are creating a list of their company's critical enterprise-wide risks. They are compiling A. a risk inventory B. a risk assessment C. enterprise risk management D. a risk control

A. a risk inventory

Jonas is a data scientist at a research firm. Part of his responsibilities include looking through his firm's databases and eliminating redundant data. Jonas is performing: A. data normalization B. digital analysis C. data filtering D. street address

A. data normalization

Budgets are important to the management process because they A. help determine roles and responsibilities. B. shift focus from future events to daily issues. C. ensure that organizational goals come before personal goals. D. remove the possibility of financial constraints.

A. help determine roles and responsibilities.

Which of the following is true of working capital management: A. It deals with accounts payable and receivable B. It concerns long-term decisions C. It decides how investments will be financed D. It determines which projects the business will invest in.

A. it deals with accounts payable and receivable

Auto mechanics and attorneys are likely to use a __________ cost accounting system. A. job order B. process C. consumer D. cyclic

A. job order

Risk retention groups are typically only allowed to offer ____________ insurance coverage. A. liability B. life C. homeowners D. health

A. liability

Deposit-taking institutions are commonly responsible for A. making payments on behalf of savers to creditors. B. raising funds for clients by issuing securities. C. carrying out regulatory and supervisory functions. D. using funds from insurance premiums to offer loans.

A. making payments on behalf of savers to creditors.

The first step in the process of taking responsibility for your decisions and actions is to A. reflect and evaluate. B. refuse to place the blame on others. C. give yourself a break. D. remember the little things.

A. reflect and evaluate

When Marlon buys a new oven for his bakery, he receives a three-year warranty from the oven company. If the oven breaks or has any problems within three years, the company promises to repair or replace it free of charge. This is an example of ____________ business risk. A. transferring B. avoiding C. preventing/controlling D. retaining

A. transferring

Bobbi, who works for an insurance company, is responsible for calculating the risk of loss, establishing premium rates, and designing insurance policies to cover risk. Bobbi works as a(n) A. underwriter. B. agent. C. accountant. D. financial analyst.

A. underwriter

A computer software that consolidates and managed multiple departmental budgets is beneficial to large businesses that A. use a bottom-up approach B. rely on an external source to facilitating forecasting C.focus on consumer expectations to develop their budgets D. generate inventory reports on a regular basis

A. use a bottom-up approach

What computer application enables a business to access information from its enterprise resource planning (ERP) software program for use in its budget software program? A. Cross-reference B. Automated data transfer C. Group D. Data-validation

B. Automated data transfer

Which of the following is an activity carried out by the financial function of business: A. Transaction documentation B. Business valuation C. Data collection D. Report generation

B. Business valuation

Which of the following is commonly used to reduce an investor's capital gains tax burden: A. Short-term investments B. Capital losses C. Puttable bonds D. Value stocks

B. Capital losses

Which of the following is a function of cost accounting budgets: A. Determining cash flow B. Controlling finances C. Understanding profitability D. Analyzing sources of income

B. Controlling finances

What must a business do in order to contribute to society? A. Preserve the environment B. Earn a profit C. Sell an idea D. Hire an advisor

B. Earn a profit

As Ben assesses his personal strengths and weaknesses, what can he do to keep from focusing too much on his weaknesses? A. Compare himself to others B. Identify one strength for every weakness C. Develop a list of false generalizations D. Ask others for critical feedback

B. Identify one strength for every weakness

What type of tax are businesses required to pay on the profits they earn? A. Excise B. Income C. Sales D. Property

B. Income

Which level of laws deal with treaties and issues such as migration and war. A. Federal B. International C. State D. Local

B. International

Why is the choice of a risk measure for internal and external risk of great practical importance? A. It determines the maximum number of clients that can be served effectively by a financial institution. B. It determines the minimum reserve requirements in financial trading. C. It identifies the types of risk that the financial institution will encounter. D. It designates the audience that will receive the resulting financial reports.

B. It determines the minimum reserve requirements in financial trading.

What method of note-taking involves using headings and subheadings to record the relationships and content in a well-organized, multi-level structure? A. Sentence B. Outline C. Mapping D. Shorthand

B. Outline

One factor that may cause a nation to experience demand-pull inflation is a A. Decrease in demand B. Shortage of supply C. Fluctuation of interest rates D. Change in credit ratings

B. Shortage of supply

Which of the following quality management approaches is often used in the finance industry to sustain regulatory compliance? A. Just-in Time B. Six Sigma C. Reassurance D. Crisis management

B. Six Sigma

Which of the following are considered the owners of a corporation: A. Managers B. Stockholders C. CEOs D. Lower-level employees

B. Stockholders

What type of communication is often transmitted through upward communication? A. Instructions B. Suggestions C. Evaluations D. Corrections

B. Suggestions

Which of the following is a data mining technique that involves scanning computer documents, email messages, and web pages to obtain data for predictive analysis: A. Dashboard B. Text mining C. Accountability matrix D. Query meandering

B. Text mining

Which of the following questions would be most helpful to answer while determining your personal vision: A. What is your desired starting salary? B. What are your talents or skills? C. What would you change about yourself? D. What are your least favorite things to do?

B. What are your talents or skills?

John and his coworkers get along well, and they frequently talk about their personal lives while eating lunch together and the office. Which of the following topics is appropriate for John to bring up with his coworkers: A. The details of his divorce proceedings B. What he watched on TV last night C. The job he'd like in 5 years D. The church service he'd like his coworkers to attend

B. What he watched on TV last night

A disadvantage of the accrual accounting system is that it does NOT A. provide insight to a business's overall well-being B. always reflect a business's current cash reserves C. allow a business to claim expenses as tax deductions D. allow a business to record transactions as they occur

B. always reflect a business's current cash reserves

A legal issue associated with the use of information might involve the violation of _____________ laws. A. patent B. copyright C. trademark D. contract

B. copyright

When two people in the same department disagree about how to allocate their budget, they are experiencing a(n): A. internal conflict B. external conflict C. labor dispute D. irreconcilable dispute

B. external conflict

Debt markets buy and sell _________________, and equity markets buy and sell ___________________. A. corporate stock, certificates of deposit B. government bonds, corporate stock C. grain, gold D. gold, government bonds

B. government bonds, corporate stock

Kramer Bank uses sophisticated computer software to analyze its commercial customers' financial information. The software reviews each customer's data and identifies additional business opportunities that the bank should pursue with the customer. The bank should share information with: A. risk management and sales. B. relationship management and sales. C. relationship management and pricing. D. risk management and pricing.

B. relationship management and sales

A stockbroker is using customer relationship management (CRM) technology to learn more about his typical customer's purchasing pattern. The stockbroker is using CRM technology to analyze the typical customer A. duration B. trajectory C. vintage D. touchpoint

B. trajectory

Financial companies raise capital by A. developing stock exchanges B. managing pension funds C. issuing notes and bonds D. pooling investors' funds

C issuing notes and bonds

Which of the following is an accurate statement of how financial information for a parent company and its subsidiaries is represented on consolidated financial statements: A. Separate allocation for the parent and each subsidiary are listed for individual assessment. B. Transactions between the parent and subsidiaries are listed for individual assessment. C. All assets, expenses, and liabilities are combined for the parent and its subsidiaries. D. All financial components are combined except for individual profits and losses of each entity.

C. All assets, expenses, and liabilities are combined for the parent and its subsidiaries.

Philippe wants to find out the average length of time that visitors spend on his business's website. Which of the following data would be most useful to Philippe: A. Receiving data B. External data C. Clickstream data D. Qualitative data

C. Clickstream data

At what stage of the entrepreneurial process does an entrepreneur determine the amount of capital needed to launch the business? A. Actualization B. Discovery C. Development D. Harvesting

C. Development

Which of the following is an example of an indirect cost in an automobile factory: A. Shipping B. Glass C. Electricity D. Assembly line workers' salaries

C. Electricity

What type of financial firm offers multiple types of financial products using one pool of capital? A. Financial holding company B. Universal bank and trust corporation C. Fully integrated financial services provider D. Consolidated cross-product parent company

C. Fully integrated financial services provider

What does Pedro need to do before he includes someone else's journal article about portfolio diversification in the e-newsletter that he sends to his clients? A. Request the trademark registration code from the originator B. Acknowledge the author in the republished article C. Obtain written permission from the copyright owner D. Inform the patent agency that he wants to publish the article

C. Obtain written permission from the copyright owner

What type of economic indicator are nominal interest rates? A. Procyclic and lagging B. Countercyclic and lagging C. Procyclic and coincident D. Countercyclic and coincident

C. Procyclic and coincident

What type of variance analysis involves determining the difference between standard costs and the actual costs of raw material used for production? A. Selling price B. Purchase price C. Material yield D. Fixed overhead

C. Purchase price

Which of the following statements is true about professional writing standards and manuals: A. Employers aren't concerned about which writing style their employees use to prepare documents, as long as the reports are accurate. B. Most businesses use a different citation method for each type of report they develop. C. Some employers use a different style manual from the ones that the experts suggest. D. The most widely-used writing style manuals format their bibliography the same way.

C. Some employers use a different style manual from the ones that the experts suggest.

What is the primary purpose that creditors analyze their customers' financial information? A. To determine how often their customers' inventory turns over. B. To know whether they're making a good investment C. To determine the likelihood of getting paid D. To understand the type of accounting method consumers use

C. To determine the likelihood of getting paid

What type of insurance do you need to purchase if you want to ensure that your beneficiaries receive an inheritance? A. Disability insurance B. Term life insurance C. Universal life insurance D. Long-term care insurance

C. Universal life insurance

Which of the following is a well-regarded source of information about stocks: A. Mediaweek B. Security Dealer C. Value Line D. Financial Executive

C. Value Line

Which of the following financial institutions provides financing and advice to countries to encourage economic development? A. Commonwealth of Nations B. Small Business Administration C. World Bank Group D. Liberty Institute

C. World Bank Group

Kwame runs an organic meal delivery service. He wants his customers to be able to depend on him to consistently deliver high-quality, heathy food that will simplify their busy lives. This is his company's A. company promise B. touch point C. brand promise D. brand point

C. brand promise

An employer-sponsored retirement plan is a type of A. inheritance B. credit account C. investment D. living trust

C. investment

The Sarta Company's risk management information system (RMIS) contains a master list of all claims: data detailing the status of individual claims; and information regarding exposure bases such as payroll, number of employees, number of company vehicles, etc. These data are likely to be housed within the ____________ section of the RMIS database.a A. risk map B. property exposure C. liability D. catastrophe modeling

C. liability

Liz has two employees that report to her. She is one of several managers with staffs of similar size. Liz's organization has a A. flat structure. B. wide span of control. C. narrow span of control. D. hands-off approach.

C. narrow span of control

A basic principle of procedural due process involves ______________ before taking action. A. awarding damages B. obtaining witnesses C. providing notice D. creating evidence

C. providing notice

When you use an infographic to represent data, your audience A. won't remember your key points. B. can become easily confused. C. will pay more attention. D. will mistrust your expertise.

C. will pay more attention.

Keegan is taking a business course, but he doesn't like his instructor's style. He decides he'll go to two more classes to see if it improves, and if not, he'll switch to a different course. Keegan is showing adaptability by developing a(n) _________________ plan. A. learning B. objective C. corrective D. contingency

D contingency

Alexander's savings account earns 1.50% in interest. Using the Rule of 72, how many years would it take for Alexander's savings to double? A. 108 years B. 15 years C. 36 years D. 48 years

D. 48 years (Divide 72 by the interest rate)

Which of the following professional relationships is most likely to be successful: A. Competing financial planners socialize at professional association meetings. B. An investment planner takes donuts to a tax accountant every Friday. C. A trust officer sends birthday and holiday cards to her clients. D. A real estate agent and an insurance broker refer clients to each other.

D. A real estate agent and an insurance broker refer clients to each other.

Luke is writing a complex report that will be submitted to the company's board of directors. He has collected relevant information that would like to provide to the audience- information that is not necessary to include in the body of the report. In what section of the report should Luke include this supplemental information? A. Table of contents B. Bibliography C. Executive summary D. Appendix

D. Appendix

When should you record bank transactions in your check register? A. When checks bounce B. When bank statements are received C. As bank statements are reconciled D. As soon as each check is written

D. As soon as each check is written

Which of the following is a computer application that increases the efficiency of the accounts-receivable function: A. Sales forecasting B. Inventory valuation C. Payroll taxation D. Batch invoicing

D. Batch invoicing

Which of the following serves as an organization's conscience during decision-making? A. The public B. The "C-Suite" (CEO, CFO, etc.) C. Employees D. Board of directors

D. Board of directors

Which form of business ownership is best to use when the business owners have difficulty acquiring enough funds for the startup costs and initial operating expenses? A. Partnership B. Sole proprietorship C. Franchise D. Corporation

D. Corporation

Tara knows that for her small business to grow, she must increase her cash flow. She's unsure, though, whether she should take out a loan or a line of credit. Which of the following budgeting software tools could Tara use to assess the potential impact of each source of funding on her business: A. Zero-based modeling B. Decision trees C. Environmental scanning D. Debt modeling

D. Debt modeling

Which of the following is a result of globalization? A. Shrinking product life cycles B. Decreased competition C. Increased consumer spending D. Higher productivity

D. Higher productivity

Which of the following is a fixed (unchanging) budget that is used by managers to measure profit or performance when it's compared to what is actually happening financially: A. Operating budget B. Rolling budget C. Dynamic budget D. Master budget

D. Master budget

Which of the following computer applications helps manufacturers track and manage the inventory that they use to produce goods: A. critical path B. job sequencing C. Reverse Logistics Systems (RLS) D. Material requirements planning (MRP)

D. Material requirements planning (MRP)

What type of financial market structure involves trading unlisted stock via a dealer network? A. Under-the-table B. Auction C. Debt D. Over-the-counter

D. Over-the-counter

James wants to borrow $2,500 to buy a car. Which of the following financial institutions is most likely to lend James the money: A. Financial holding company B. Investment bank C. Mortgage company D. Retail bank

D. Retail bank

Which of the following types of customer relationship management software would be the most appropriate for a company that is looking for a more efficient way to track potential new customers: A. Matching engine technology B. Campaign management software C. Personalization technology D. Sales force automation

D. Sales force automation

Which of the following is an example of preventative internal control? A. Physical inventories B. Data reconciliation C. Variance analyses D. Segregation of duties

D. Segregation of duties

Which of the following questions would be the least difficult to answer using data mining techniques? A. What will a particular customer order next? B. When will this customer place his/her next order? C. Why did this customer move his/her checking account to another bank? D. What makes some customers a better credit risk than others?

D. What makes some customers a better credit risk than others?

Are customers who do not complain a more difficult problem for businesses than customers who do complain? A. No, because the salesperson can satisfy the customers who do not complain within company guidelines. B. Yes, because records of the complaints cannot be maintained. C. No, because customers who do not complain do not express ill feelings. D. Yes, because the salesperson does not have the opportunity to handle the complaint.

D. Yes, because the salesperson does not have the opportunity to handle the complaint.

Corporate stocks, long-term government securities, state and local government bonds, and bank commercial loans are traded on the _________ market. A. spot B. money C. debt D. capital

D. capital

A business uses benchmarking applications when it wants to: A. determine the taxes that it owes to the federal government. B. measure the amount of time it needs to convert assets into cash. C. calculate the dividends that will be paid to stockholders. D. compare its performance with other companies in the industry.

D. compare its performance with other companies in the industry.

The Money for You Bank recently merged with the Keeping You Safe Insurance Company. The merger is an example of __________ in the finance industry. A. licensing B. consolidation C. tactical planning D. convergence

D. convergence

If the dividend per share on a securities table is blank, it indicates that the company's stock A. has zero trades in the last 24 hours. B. has a negative dividend yield. C. has a net change value of zero. D. does not currently pay dividends.

D. does not currently pay dividends.

In some states, businesses pay a percentage of their profit in taxes, no matter how much they make. This is known as a(n) __________________ tax. A. fair B. excise C. sales D. flat

D. flat

Many businesses use infographics to help persuade readers because A. readers spend more time viewing infographics. B. original artwork usually takes longer to create. C. most people are lazy and don't like to read. D. infographics raise the perception of quality.

D. infographics raise the perception of quality.

Certificates of deposit and collectibles are types of A. earnings. B. accounts. C. securities. D. investments.

D. investments

Managers often use financial data and reports to determine a business's profitability. competitiveness, and A. personal net worth B. internal accounting controls C. human resources needs D. operational inefficiencies

D. operational inefficiency

Jill needs to find several records with similar. but not identical. information in her company database. To do so, Jill should use a(n) _______ query. A. action B. crosstab C. sum function in her D. wildcard in her

D. wildcard in her

A primary difference between groups and teams is that team members ______________, while group members ______________. A. are personally accountable, share accountability B. function independently, function interdependently C. follow authority, assume leadership roles D. work collaboratively, work separately

D. work collaboratively, work separately

When businesses in a particular industry carry risks that commercial insurance companies typically do not cover, they often form _______________ to ______________ risk.

captive insurance companies; transfer

Internal audits are used by ___________, while external audits are used by ____________.

management; stakeholders