RRHS DECA Finance Cluster Exam

The stock table column that tells you how many shares were traded that day is labeled

• A. DIV.

• B. NET CHG.

• C. YLD %.

• D. VOL.

An example of an internal financial risk is

• A. consumer buying power.

• B. foreign exchange rate changes.

• C. improper budgeting practices.

• D. credit downgrades.

Why would a bank examine a business's balance sheet?

• A. To determine whether the company qualifies for additional credit

• B. To determine whether to declare the company bankrupt

• C. To meet its oversight responsibilities of the business community

• D. To recognize its most profitable customers

What do many businesses develop to encourage ethical behavior in finance?

• A. Penalties

• B. Punishments

• C. Sanctions

• D. Standards

Why it is important for businesses to keep accurate accounts-receivable information?

• A. To evaluate interest rates

• B. To forecast sales

• C. To classify stocks

• D. To monitor aging accounts

Which of the following is an example of a businessperson exhibiting unethical behavior in relation to a

business's financial information:

• A. An auditor verifies the accuracy of a corporation's financial statements.

• B. An unauthorized employee reviews a client's financial information.

• C. A banker requests financial information from a business to process a loan.

• D. A manager examines the business's financial records to develop a budget.

Why has online technology's use increased in financial-information management?

A. Recognition that the security of transactions is no longer an issue

B. Removal of electronic information exchange procedures

C. Passage of laws that recognize electronic documents as legally binding

D. Protection of customers' right to privacy

• A. Recognition that the security of transactions is no longer an issue

• B. Removal of electronic information exchange procedures

• C. Passage of laws that recognize electronic documents as legally binding

• D. Protection of customers' right to privacy

What must a business do before deciding which data-mining technique to use?

A. Filter the raw data C. Determine the research question

B. Acquire the desired results D. Analyze product usage patterns

• A. Filter the raw data

• B. Acquire the desired results

• C. Determine the research question

• D. Analyze product usage patterns

Which of the following questions would be the least difficult to answer using data mining techniques:

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

• B. When will this customer place his/her next order?

• C. Why did this customer move her/his checking account to another bank?

• D. What product will a particular customer order next?

If you were using a computer spreadsheet to track your small-business's budget, which of the following

should you categorize as investment income:

• A. Dividends

• B. Cash sales

• C. Credit sales

• D. Interest on debt