DECA Finance Cluster Test #1
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 credit card transactions each month to identify questionable transactions? A. artificial neural networks B. decision trees C. nearest-neighbor method D. dashboards
A
A debtor-creditor relationship exists when: A. interest is being charged B. a sale is paid in full C. a contract is invalidated D. stocks are liquidated
A
A firm's environment scan reveals that a country is on the brink of a civil war, which would affect the firm's ability to do business in the country. This is an example of a(n) ____ consideration. A. political B. economic C. cultural D. regulatory
A
A mutual find'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? A. 7.58% B. 6.45% C. 7.29% D. 8.06%
A
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. A. $6,500 B. $8,900 C. $6,225 D. $4,245
A
In relation to recording business transactions, a primary difference between the cost and accrual accounting systems is: A. timing B. scope C. frequency D. complexity
A
It is important for a business to evaluate the financial condition of a potential vendor during the vendor selection process to assess the: A. risk levels of doing business with the vendor B. reliability of the products that the vendor carries C. vendor's levels of customer service D. vendor's required lead times
A
Most businesses maintain record about what customers are buying and how much they are spending in order to: A. analyze the information B. plan an inventory count C. offer quality service D. develop a quality environment
A
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? A. Ask her supervisor to clarify directions B. Turn in her work quickly so her supervisor can identify the needed corrections C. Restart the assignment working off her new thought for step two D. Email her work to three coworkers and ask their opinion
A
To be most effective, continuous-inspection compliance technology should have access to transactional information: A. at its source B. biweekly C. samples D. liquidity ratios
A
To build professional relationships, Bryan serves on several trade association committees, co-authors articles with other finance professionals to publish in the local newspaper, and treats business contracts to dinner of golf. These activities are forms of: A. networking B. cooperating C. advertising D. up-selling
A
Under what circumstances would stock prices increase? A. when consumer spending increases B. during times of high unemployment C. when interest rates increase D. during a bear market period
A
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 the price. After the price went, the scammers sold off their stock. The prices then fell, leaving Walt with worthless stock. This is an example of: A. pump and dump B. pyramid scheme C. affinity fraud D. phishing
A
What is the primary function of the Random Access Memory (RAM) component of a computer? A. serves as a temporary holding area for files and programs B. reads the computer code that provides visual effects C. stores data and programs permanently D. enable the user to apply point-and-click commands
A
What is the purpose of developing and using graphics in business reports? A. To communicate information B. To entertain the audience C. To fill out the page layout D. To highlight reference material
A
What should help businesspeople adapt their communication styles to appeal to clients from other cultures? A. Being patient, flexible, and emphatic B. Being confident, biased, and manipulative C. Being sensitive, transparent, and demanding D. Being respectful, indifferent, and honest
A
Which of the following budgeting software applications tracks a business's cash, interest, and dividends? A. revenue recognition B. workflow management C. inventory planning D. capital expenses
A
Which of the following is NOT a factor contributing to financial convergence and consolidation? A. desire for illiquid assets B. technological advances C. financial deregulation D. desire for lower costs
A
Which of the following is a tool that enable financial managers to identify changes or trends in production costs by reviewing the same types of data from different periods of time? A. comparative statement B. frequency ratio C. accounts-recievable summary D. sales-transactions log
A
Which of the following is an internal factor that has an effect on business cycles? A. inventory levels B. political changes C. new discoveries D. foreign conflicts
A
Which of the following statements about economic resources is true? A. All economic resources are limited B. All natural resources can be replaced C. Economic resources are considered consumer goods D. Economic resources are the outputs of production
A
Which of the following statements is true about accounting systems? A. The managerial accounting system is useful for planning and internal decision making B. The financial accounting system focuses on segments of the company rather than the company as a whole C. The government requires all businesses to use the managerial accounting system D. The financial accounting system is used by external audiences, so reporting flexibility is an advantage to the business
A
Why is it important for individuals to periodically validate their credit histories? A. to avoid being denied credit B. to understand credit laws C. to find out about different types of credit D. to protect themselves from slander
A
What is one factor that determines a manager's credibility with employees? A. reputation B. creativity C. patience D. aptitude
A*
"Big Q" focuses on: A. improving factory conditions B. exceeding customer expectations C. conforming to specifications D. designing and developing products
B
A business wants to determine which customer are most likely to buy $100,000 in products from them in the next year, so it uses its computer system to search of customers who meet a set of criteria related to sales. What process is the business using to obtain the desired financial information? A. accounting B. data mining C. surveying D. industry forecasting
B
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: A. profitability B. liquidity C. efficiency D. investment return
B
A financial-information management system can help a financial manager to make which of the following types of decisions? A. employee scheduling B. capital budgeting C. vendor selections D. adding/dropping products
B
After a job interview, an applicant should prepare a follow-up letter that: A. is long and detailed B. is short and typed C. includes a résumé D. contains a photo
B
An overall purpose of establishing goals is to increase your chances of: A. achieving immediate success B. satisfying your wants C. enlarging your income D. avoiding making mistakes
B
Businesses use budgets to estimate how they will: A. file their taxes B. spend their money C. calculate their assets D. depreciate their assets
B
Employees who never discuss confidential or personal business information with other employees are demonstrating their: A. ability to communicate B. honesty and integrity C. intelligence and initiative D. orderly and systematic behavior
B
Group orientation sessions for new employees are very important because they: A. explain the duties of each job B. help to motivate employees C. encourage organization input D. provide in-depth training
B
Henry is a professional banker. Only certain people -- "members" -- may save at or borrow money from his deposit-taking financial institution. Henry most likely works for a(n): A. mortgage company B. credit union C. insurance company D. CPA firm
B
If an accounting firm deliberately conceals information about a client's financial status, the government may charge the business with: A. expropriation B. obstruction of justice C. breach of contract D. substantiation
B
Job seekers can often find out about local employment opportunities by accessing a business's: A. employee newsletter B. website C. online catalog D. annual report
B
Last year, Mr. McKinney gave a portion of his wages to a local charity and was not required to pay taxes on the amount of his donation. This is an example of: A. estate allocation B. tax deduction C. tax-deferred investment D. investment disbursement
B
Melissa writes a checks to pay for her rent, utilities, and groceries, and she keeps a record of all these transactions in her check register. Keeping an accurate check register help Melissa: A. determine when she needs to add funds to her savings account B. track the amount of money she has spent C. understand the checking account's restrictions and fees D. decide when to order new checks
B
Susan wants to obtain a loan to purchase business equipment. She calls different banks to obtain information about the interest rates and the types of loans available so she can determine which bank is the best option. Susan is analyzing the financial information that she is collecting to: A. correct inaccurate financial data B. guide her decision making C. determine business profitability D. solve a business problem
B
The essence of time management is to: A. eliminate the need to prioritize activities B. control events in order to accomplish priorities C. focus on spreading work over a period of time D. set a fixed schedule and follow it
B
To secure confidential financial data that are transmitted through the Internet, businesses often use: A. cross-platform technology B. encryption techniques C. bots D. debuggers
B
What does determining the target market's buying behavior involve? A. Finding out where the market is located B. Finding out what the market will purchase C. Finding out how the market is organized D. Finding out why the market exists
B
What exists when a market is legally controlled by one supplier and there are no substitute goods/services readily available? A. price discrimination B. regulated monopoly C. price competition D. nonprice competition
B
What usually decreases as the rate of inflation increases? A. interest rates B. purchasing power C. export quotes D. money supply
B
When providing services to clients, financial professionals have the responsibility to supply: A. payment options B. accurate information C. bank statements D. credit counseling
B
Which of the following factors affecting the business environment is represented by the business's location? A. cultural B. environmental C. economic D. political
B
Which of the following is a financial want rather than a financial need? A. food B. education C. clothing D. shelter
B
Which of the following is an example of a persuasive message that businesses write? A. Electronic mail B. Collection letter C. Handwritten note D. Interoffice memo
B
Which of the following is an example of an employee who is meeting his/her employer's expectations? A. Tom spends the first half hour of the workday chatting with Kate. B Allison focuses on her work task so she can meet her deadlines. C. Rachel sends a text message to her roommate during a meeting. D. Calvin tells a customer about his issues with a difficult coworker
B
Which of the following is an uninsurable external risk to businesses? A. inventory B. tax increases C. personal injury D. natural disasters
B
Which of the following is the most likely to happen to employees who are discourteous to the businesses' employees? A. They are promoted B. They are fired C. They win an award D. They lose their benefits
B
Which of the following risks might result from ethical misconduct? A. decreased whistle blowing B. decreased company value C. increased employee support of the company D. increased positive publicity
B
Which of the following statements is true about determining your personal vision for the future? A. It involves following a step-by-step plan B. It depends more on emotion than logic C. It requires facts and concrete goals D. It is risk free and time bound
B
Which of the following would afford finance professionals the best opportunity to build long-lasting relationships with other finance professionals? A. regularly attended trade shows for the finance industry B. actively participating in a local professional association for the finance industry C. occasionally auditing classes a local postsecondary institution D. actively attending meetings sponsored by the local chamber of commerce
B
Which type of business is known for often being the most innovative? A. old businesses B. small businesses C. new businesses D. large businesses
B
Why are there no specific rules for workers to follow in treating others fairly? A. Businesses object to having rules B. Every workplace is different C. Workers know how to be fair D. Rules are difficult to remember
B
Yvonne is running a query to create, delete, or modify other database objects. Which type of query is Yvonne running? A. select B. date-definition C. crosstab D. pass-through
B
A characteristic of a simple written report is that usually is: A. abstract B. formal C. short D. detailed
C
According to today's stock quotation table, the current price of Macy's stock is $18.99 per share. Last year, the company paid investors a dividend of $0.20 per share. What is the current yield on Macy's stock? A. 3.80% B. 2.00% C. 1.05% D. 4.95%
C
After finding several inconsistencies with its financial data, the MSV Company hired a compliance officer to monitor its financial processes and insure that the company is complying with regulations. What type of internal control has the business implemented? A. Prodcuct B. Preventative C. Corrective D. Conditional
C
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. A. trade B. antitrust C. contract D. property
C
Businesses benefit when employees handle customer inquiries in an effective manner because: A. customers feel the need to ask more questions B. customers feel free to return products C. customer's confidence increases D. customer's total purchases decrease
C
Carson is a staff accountant, and he needs to look at last year's tax return. However, he can't find it anywhere. Which information management guideline is not being followed in this situation? A. Set and consistently follow organizational information management practices B. Make sure that information is accurate C. Make sure that information is retrievable D. Prioritize information management needs according to business needs
C
Certain health and safety regulations require many types of businesses to: A. offer exercise programs B. purchase new machinery C. routinely inspect equipment D. install security cameras
C
Customer Relationship Management (CRM) data are sometimes called "perishable" data because the data: A. may be non-standardized unformatted B. are often duplicated C. can become inaccurate over time D. often contain junk or garbage
C
Financial globalization tends to cause an increase in: A. taxes on international transactions B. investors' exposure to business cycle risks C. herd behavior among investors D. limits on foreigners' access to domestic markets
C
In a market economy what consumers want and need helps to answer the basic economic question of: A. how products will be produced B. who will do the production C. what products will be produced D. how products will be allocated
C
Jack says to Wendi, "If I understand you correctly, you are saying that you want to change the format of the inventory report so it will be easier for managers to analyze." What communication technique is Jack using to clarify Wendi's recommendation? A. passive listening B. expressing an opinion C. paraphrasing D. quoting
C
John is generally a good worker, except that he lacks the ability to see what needs to be done without being told. What personal trait is John lacking? A. empathy B. honesty C. initiative D. creativity
C
Melanie dressed for her job interview at a local bank in a pair of old, comfortable jeans, a sweatshirt, and well-worn Nikes. Which of the following messages is Melanie sending to the interviewer through her choice of clothes? A. I care a lot about the outcome of this interview B. I would really like to be hired for this job C. I consider my own comfort my first priority D. I'm someone who will support the image of the bank
C
One of the major functions of business maintenance is to: A. prevent fraudulent behavior B. motivate employees C. create a favorable impression D. guarantee the business's success
C
Thad is investing in a money market, which buys and sells products such as: A. agricultural goods B. shares of stock C. treasury bills D. technology
C
The accounting treatment of capital expenditures should ______ over multiple reporting periods. A. hedged B. flexible C. consistent D. callable
C
What do bond yields typically do during an economic expansion? A. drop to near zero B. gradually decrease C. increase D. remain unchanged
C
What is the advantage to a business that installs external surveillance cameras in prominent locations around its property? A. eliminates the need to install alarms B. reduces the risk of extortion C. discourages attempted burglaries D. prevents armed robberies
C
What type of tax are businesses required to pay on the profits they earn? A. sales B. excise C. income D. property
C
When Matthew receives a check four times a year for income he has earned on his stock investments, he is receiving: A. deposits B. credit C. dividends D. cash
C
Which of the following individuals is an internal user of a business's financial data? A. creditor B. investor C. manager D. tax collector
C
Which of the following is a formatting characteristic of a full block business letter? A. Indented first paragraph B. Double spacing within the paragraphs C. No paragraph indentation D. All paragraphs use right justification
C
Which of the following is a production activity? A. Receiving B. Advertising C. Scheduling D. Marketing
C
Which of the following is a way to demonstrate empathy? A. give advice to people in need B. develop a good imagination C. use tact when speaking D. ignore a coworker
C
A severe storm blows down trees that fall on a business and collapse the roof and break windows. This type of damage results from _____ risks. A. financial B. human C. economic D. natural
D
After passing the General Securities Registered Representative Examination or the Canadian Securities Course exam, a businessperson obtains licensure or certification that allows him/her to work as a(n): A. estate planner B. accountant C. underwriter D. stockbroker
D
An advantage to business that use master data management applications is the ____ of the data. A. complexity B. variation C. replication D. consistency
D
By protecting financial information from tampering, loss, and unauthorized use, a financial-information management professional acts as a(n) ______ of that financial information. A. agent B. interpreter C. analyst D. steward
D
Choosing to buy an item at the check-out counter is often an example of: A. smart shopping B. poor use of credit C. financial self-control D. impulsive spending
D
In order to benefit from criticism, you must take an objective look at it and decide how much of it is: A. too difficult to worry about B. short term vs. long term C. from someone you dislike D. valid and based on fact
D
Lawrence's manager asked him to prepare a visual representation of key performance indicators, including cash flow, liquidity, profitability, and liability. Lawrence should use his company's analytic software to create a(n): A. operating agreement B. profit-and-loss statement C. cost standard D. financial scorecard
D
The French-Canadian culture relies heavily on nonverbal communication to get messages across. This means it is a(n): A. ethnocentric culture B. religious culture C. corrupt culture D. high-context culture
D
The primary purpose of the accounting function is to prepare and present relevant financial information, while the primary purpose of the finance function is to: A. adjust journal entries base on the information provided B. modify accounts receivable based the information provided C. apply the information to calculate the business's equity D. use the information to make financial decisions
D
The primary reason that firms must take steps to control their levels of business risk is to: A. increase their financial liability levels B. increase their visibility in the market C. contribute to the well-being of society D. reduce the chances of financial losses
D
Three types of communication usually found in business with a formal communication network are: A. informational, official, and conversational B. grapevine, informal, and standard C. upward, horizontal, and diagonal D. downward, upward, and lateral
D
Todd created a graphic organizer to illustrate his business's quality-control processes. He used a combination of pictures, graphs, and simple statements to sequentially present the information. What did Todd develop? A. proposal B. outline C. draft D. storyboard
D
Tyrone is writing a research paper for his business class. What question should he ask when looking for valid sources? A. Do I agree with the viewpoint of the author? B. Is this material interesting and easy to read? C. Does the source provide graphic aids? D. Is the information in this source up to date?
D
When Alana prepares a report so that all of the financial data is clearly disclosed, she is ensuring that the information is: A. flexible B. relevant C. timely D. transparent
D
When making a plan for improvement, the coacher's job is to: A. give constructive criticism B. use questioning skills C. provide motivation D. take personal responsibility for making the changes
D
Which of the following demonstrates the correct method to ensure that all words in a phrase are included in a web search? A. (Discipline is the most important part of success) B. [There is no tree that the wind has not shaken] C. 'To be or not to be' D. "Confidence in itself is the secret of success"
D
Which of the following forms of technology is most useful in operations? A. smart phones B. e-readers C. assistive technology D. computer-aided design
D
Which of the following is a business trend that affects all countries? A. decreased inflation B. socialism C. increased regulation D. globalization
D
Which of the following is an example of the impact of technology on the financial-services industry? A. Blurring the lines between banking, insurance, and investments B. More walk-in bank customers C. Greater demand for investment professionals D. Rising concern about fraud and identity theft
D
