DECA Test #5

Which of the following equations should employees know when they are verifying the accuracy of a business's balance sheet: A. Assets = Liabilities + Owner's Equity B. Owner's Equity = Available Cash - Liabilities C. Assets = Owner's Equity - Liabilities D. Owner's Equity = Liabilities + Available Cash

A. Assets = Liabilities + Owner's Equity

How does forming a captive insurance company typically impact a corporation's federal tax liability? A. Reduces tax due on the captive's premiums B. Increases tax due on the captive's loss reserves C. Increases the corporation's sales tax liabilities D. Eliminates the corporation's state tax liabilities

A. Reduces tax due on the captive's premiums

Insecure people are often afraid to become assertive because they think they will A. damage their relationships. B. have to please others. C. be considered childish. D. lose their independence.

A. damage their relationships.

The general economic growth of a country is supported by its A. level of productivity. B. standard of living. C. gross domestic product. D. wealth of goods and services.

A. level of productivity.

99. It is important for companies to practice enterprise risk management (ERM) because A. most risks are predictable and manageable. B. it leads to loss of shareholder value. C. most risks are unexpected. D. it increases business costs in the long run.

A. most risks are predictable and manageable.

In general, a governance, risk, and compliance (GRC) software system identifies and measures risk; monitors the risk-management system; routinely checks adherence to company-wide policies; and ensures compliance with A. reporting requirements. B. union demands. C. product standards. D. contingency plans.

A. reporting requirements.

Business customers differ from final consumers in that A. there is a greater emphasis on personal selling in business-to-business marketing. B. business customers don't care about service as much as consumers do. C. consumers tend to buy in bulk more often than businesses do. D. consumer products tend to be more technical in nature.

A. there is a greater emphasis on personal selling in business-to-business marketing.

Supervised by the Federal Reserve Board, The DAB Company provides investment advisory services, insurance underwriting, securities underwriting, and merchant banking services. What does the DAB Company exemplify? A. An accounting firm B. A financial holding company C. A central bank D. A commodities investor

B. A financial holding company

What financial analysis application does a business use to evaluate changes in its cash position from month to month? A. Expense B. Cash flow C. Fixed costs D. Performance

B. Cash flow

Which of the following are examples of deposit-taking financial institutions: A. Commercial banks, corporations, and mutual savings banks B. Credit unions, savings and loan associations, and commercial banks C. Savings and loan associations, mutual savings banks, and insurance firms D. Commercial banks, credit unions, and brokerages

B. Credit unions, savings and loan associations, and commercial banks

When filing a tort against a business, the plaintiff must establish that the defendant A. damaged property intentionally. B. breached the duty of care. C. conspired with a competitor. D. violated the doctrine of sovereign immunity.

B. breached the duty of care.

An advantage to businesses of using quality control methods is that these methods often A. involve time. B. reduce costs. C. increase waste. D. require directions.

B. reduce costs.

Ethan is developing common-size financial statements so that he can compare financial performance across several different companies. Ethan is conducting __________ analysis. A. horizontal B. vertical C. ratio D. trend

B. vertical

. Beverly, the new office manager, just completed a review of the last two years of accounts receivable data. In doing so, she discovered that there are erroneous duplicate entries totaling $25,628 in the system. Unfortunately, due to these duplicate entries, collection letters were sent to many customers who had already paid in full—customers who are angry with the company for sending them the letters. What should Beverly do to try to save these customer relationships and ensure that these customers are not bothered in the future? A. Contact each customer by phone and apologize B. Complete an accounting software update C. Complete a data cleansing of the erroneous entries D. Use funds from the accounts payable account to pay the debt

C. Complete a data cleansing of the erroneous entries

Which of the following is an example of how a business or industry has a unique relationship with its environment: A. Social and cultural attitudes change over time. B. An economy in prosperity will eventually experience recession. C. Demand for skilled nursing care rises as the population ages. D. New technology causes new laws to be enacted.

C. Demand for skilled nursing care rises as the population ages.

Why should managers know how to do the work of the workers they supervise? A. To create a team spirit among employees B. To establish a chain of command C. To have realistic expectations for workers D. To coordinate employees' efforts

C. To have realistic expectations for workers

The first task in the HR management activity of staffing is A. determining job descriptions. B. screening and selecting applicants. C. determining need. D. recruiting.

C. determining need.

One way to build professional relationships in the finance industry is to A. encourage others to discuss their finances. B. read about industry trends. C. implement a referral system. D. print new business cards for distribution.

C. implement a referral system.

The most common headings on a stock table include the 52-week high and low, the stock symbol, the estimated dividend per share, the yield percentage/rate of return, the volume/sales for the day, the closing price for the day, the net change and the A. net income. B. earnings per share. C. price-earnings ratio. D. stockholder's equity.

C. price-earnings ratio.

Recognizing your strengths and weaknesses helps you to accept yourself, which is one of the foundations of A. safety. B. social acceptance. C. self-esteem. D. self-fulfillment.

C. self-esteem.

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

D. Balance sheet

Adian is conducting online research for a marketing project at work. What web-based tool will help Adian save and organize the websites that contain the relevant information he needs for his final report? A. Personal intranet connection B. Notebook with color-coded dividers C. Word-processing memo template D. Browser bookmarking applications

D. Browser bookmarking applications

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

When preparing a statement of equity, what does a business deduct from its total net income to obtain its retained earnings? A. Bad debt B. Depreciation of assets C. Sales tax payable D. Dividends paid

D. Dividends paid

Joan achieved her goal of being a junior partner in five years. This achievement has made Joan feel good about herself, so she has set a new goal to be a senior partner in 10 years. Joan has received which of the following benefits of goal setting: A. Helps you to understand yourself B. Gives you a way to measure your progress C. Helps you to stay on task D. Raises your level of self-esteem

D. Raises your level of self-esteem

Amy says, "I think the primary reason that last year's sales were higher than this year's sales is because Jansen Electronics has taken a portion of our market share." This is an example of A. comparative criticism. B. a fact. C. historical data. D. an opinion.

D. an opinion.

Purchasing is important to international businesses because A. supplies should be delivered in a timely fashion. B. good relations with vendors reduce prices. C. quality standards should be maintained. D. controlling costs increases competitiveness.

D. controlling costs increases competitiveness.

One way a leader can encourage others to work toward a shared vision is by A. guaranteeing a profit for the business. B. describing the objective. C. reviewing the new assignment. D. explaining how they will benefit.

D. explaining how they will benefit.

Financial planning can be described as a way to A. retire with a substantial amount of money in the bank. B. stop all impulsive purchases. C. achieve your professional goals. D. realize what it takes to get the things you really want.

D. realize what it takes to get the things you really want.

When providing product information to clients, finance professionals should use A. standard responses. B. technical terms. C. financial acronyms. D. simple explanations.

D. simple explanations.

Colleen will vote next week on the new contract that her union has negotiated with management. Union and management are in the __________ stage of the collective-bargaining process. A. contract settlement B. ratification of contract C. preparation and research D. tentative agreement

D. tentative agreement

Which of the following is an example of a change in the relative price ratio when the original price of red apples is $0.60 per pound and the original price of green apples is $0.80 per pound: A. Red apples @ $0.30 per pound; green apples @ $0.40 per pound B. Red apples @ $0.90 per pound; green apples @ $0.80 per pound C. Red apples @ $0.45 per pound; green apples @ $0.60 per pound D. Red apples @ $1.20 per pound; green apples @ $1.60 per pound

Red apples @ $0.90 per pound; green apples @ $0.80 per pound