DECA Finance Cluster Exam #1 Corrections

Financial globalization tends to cause an increase in

herd behavior among investors.

Which of the following is a tool that enables financial managers to identify changes or trends in production costs by reviewing the same types of data from different periods of time:

Comparative Statement

Which of the following forms of technology is most useful in operations:

Computer-aided design

The accounting treatment of capital expenditures should be __________ over multiple reporting periods.

Consistent

Business A's failure to keep an agreement to supply Business B with a certain good or service is an example of a situation that is covered by __________ law.

Contract

Which of the following is most likely to happen to employees who are discourteous to the business's customers:

They may be fired

In relation to recording business transactions, a primary difference between the cost and accrual accounting systems is

Timing

Why is it important for individuals to periodically validate their credit histories?

To avoid being denied credit

Thad is investing in a money market, which buys and sells products such as

Treasury bills

Which of the following is not a factor contributing to financial convergence and consolidation:

Desire for illiquid assets

What is the advantage to a business that installs external surveillance cameras in prominent locations around its property?

Discourages attempted burglaries

Which of the following is a financial want rather than a financial need:

Education

Which of the following factors affecting the business environment is represented by the business's location:

Environmental

Why are there no specific rules for workers to follow in treating others fairly?

Every workplace is different

"Big Q" focuses on

Exceeding customer's expectations

What does determining the target market's buying behavior involve?

Finding out what the market will purchase

Group orientation sessions for new employees are very important because they

Help to motivate employees

The French-Canadian culture relies heavily on nonverbal communication to get messages across. This means it is a(n)

High-context culture

Employees who never discuss confidential or personal business information with other employees are demonstrating their

Honesty and Integrity

What type of tax are businesses required to pay on the profits they earn?

Income Tax

What do bond yields typically do during an economic expansion?

Increase

A debtor-creditor relationship exists when

Interest is charged

Three types of communication usually found in a business with a formal communication network are

downward, upward, and lateral.

Calculate a business's total cash receipts for one month if it had cash sales of $6,500, credit sales of $2,450, cost of goods sold of $2,725, and total expenses of $1,980.

$6500

A mutual fund's total liabilities are $5,600,000, and its assets total $7,950,000. There are currently 31,000,000 shares outstanding. What is the net asset value of the fund?

7.58%

When providing services to clients, financial professionals have the responsibility to supply

Accurate information

Most businesses maintain records about what customers are buying and how much they are spending in order to

Analyze the information

A business owner is concerned that some of his employees may be using their company credit cards to make personal purchases. Which data-mining technique should the owner use to review the employees' credit card transactions each month to identify questionable transactions?

Artificial neural networks

Theresa's supervisor gives her written directions for an assignment. Theresa carefully completes the task as the directions specify. As she finishes the last step, she realizes that her work in step two may not be exactly right. What should she do?

Ask her supervisor to clarify the directions

After finding several inconsistencies with its financial data, the MSV Company hired a compliance officer to monitor its financial processes and to ensure that the company is complying with regulations. What type of internal control has the business implemented?

Corrective

A business wants to determine which customers are most likely to buy $100,000 in products from them in the next year, so it uses its computer system to search for customers who meet a set of criteria related to sales. What process is the business using to obtain the desired financial information?

Data mining

Yvonne is running a query to create, delete, or modify other database objects. What type of query is Yvonne running?

Data-definition

A creditor carefully examines a business's financial information to determine whether the business has sufficient money to meet its short-term obligations when they come due. In this situation, the creditor is concerned about the business's

Liquidity

Which of the following individuals is an internal user of a business's financial data:

Manager

Which of the following is a formatting characteristic of a full-block business letter:

No paragraph indents

If an accounting firm deliberately conceals information about a client's financial status, the government may charge the business with

Obstruction of Justice

Walt purchased stock based on false information from an online message board. The scammers who posted the information had purchased the stock and hyped it up on the Internet to encourage unsuspecting investors to buy it and drive up its price. After the price went up, the scammers sold off their stock. The price of the stock then fell, leaving Walt with worthless stock. Walt was the victim of

Pump and dump

Which of the following budgeting software applications tracks a business's cash, interest, and dividends:

Revenue recognition

Which of the following is a production activity:

Scheduling

What is the primary function of the Random Access Memory (RAM) component of a computer?

Serves as a temporary holding area for files and programs

Which type of business is known for often being the most innovative?

Small Business

By protecting financial information from tampering, loss, and unauthorized use, a financial-information management professional acts as a(n) __________ of that financial information.

Steward

Which of the following is an uninsurable external risk to businesses?

Tax increases

Which of the following is a way to demonstrate empathy:

Use tact when speaking

Under what circumstances would stock prices increase?

When consumer spending increases

The essence of time management is to

control events in order to accomplish priorities.