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WorksheetsRRHS DECA Finance Cluster Exam
Total questions: 50
Worksheet time: 26mins
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
Which of the following questions should the user of financial analysis applications be able to answer:
A. Why are products being added to the company's product mix?
B. Which projects are business priorities?
C. What will the company's actual amount of profit margin be next year?
D. What is the change in the company's liquidity?
The purpose of using the locking function for a database is to
A. set queries to retrieve data from specific data fields.
B. allow users to import data from external programs.
C. develop reports and summarize various data.
D. ensure that only one person can edit data fields.
Investment firms must accurately report their financial position because
A. they are trusted to maintain an accurate accounting of people's revenue and expenses.
B. others rely on the information when making credit and/or investment decisions.
C. they maintain both brick-and-mortar and virtual businesses for trading.
D. people know that investment firms would not take advantage of them.
Which of the following establishes the guidelines for the way that a publicly owned company reports its
financial position:
A. The federal government C. The accounting department
B. The board of directors D. The stockholders
A. The federal government
B. The board of directors
C. The accounting department
D. The stockholders
Which of the following statements regarding accounting and finance is correct:
A. Accounting is much broader than finance, which focuses on investments.
B. Accounting focuses on the past, while finance focuses on the future.
C. Financial managers typically report to the vice president of accounting.
D. The finance department focuses on assets, while accountants track liabilities.
What type of accounting system is used for internal decision making, is not governed by generally
accepted accounting principles, and emphasizes the future?
A. Managerial
B. Tax
C. Financial
D. Double entry
If a trend indicates that a business is making more money, the business is most likely to have identified
the trend by comparing its __________ from previous time periods.
A. advertising budgets
B. profitability ratios
C. interest rates
D. payroll records
Before approving a loan application, a bank is likely to analyze the applicant's
A. brand preferences.
B. inflation rate.
C. debt ratio.
D. performance goals.
An automotive parts supplier must decide whether to extend a credit line to a new business customer.
Before approving or denying credit for the new customer, what should the supplier do?
A. Analyze the customer's credit application, credit report, bank information, and financial
statements
B. Contact company shareholders and ask for permission to extend credit to the customer
C. Discuss the customer's request for credit with the supplier's financial accountants
D. Evaluate the qualifications and work histories of the customer's management team
Which of the following sources of financial data might a manager use to analyze expense variances:
A. Cash receipts
B. Customer invoices
C.payroll report
D. Productivity reports
Making sure a company follows laws and regulations describes the HR management activity of
A. staffing.
B. compliance.
C. compensation and benefits.
D. employee relations.
Businesses should keep promises to customers in both personal interactions with employees and
A. advertising.
B. newspaper articles.
C. coworker interactions.
D. future products.
While researching information for a business report, Tara reads the following statement in an online
newspaper article: "Although unemployment has dropped slightly over the past few months, many
politicians have indicated that they believe the government has done enough to get our country out of
this recession." This is an example of information that contains
A. statistics.
B. historical facts
C. criticism.
D. poll data.
ChemTech International plans to build a new research facility, which is to be completed in two years. As an employee with ChemTech, your supervisor has requested that you produce a detailed document to send to potential vendors and contractors that outlines how they should submit bids to perform work for the new facility. The document is to contain instructions about the type of information the potential vendors should provide in their bids, and the format in which the information should be presented. What type of document are you preparing?
A. Summary of qualifications
B. Request for proposal
C. Executive summary
D. Business plan
If a company is managing its information effectively, the data should be accurate and
A. encrypted.
B. relevant.
C. anonymous.
D. positive.
When giving verbal instructions, you should always
A. avoid eye contact.
B. give concrete examples.
C. provide written directions.
D. use as many steps as possible.
Customer Relationship Management (CRM) processes should support the basic steps of the
__________ cycle.
A. accounting
B. customer life
C. customer complaint
D. business
In business, economic downturns and technological changes are likely to cause businesses to
A. make changes of their own.
B. hire unskilled workers.
C. expand their operations.
D. resist beneficial changes.
What is equity?
Earnings that a company has retained and the amount of funds invested in that company by its owners
A data-mining technique that takes a numerical dataset and develops a mathematical formula that fits the data
the increase of an amount of money due to interest earned over time or dividends paid
A cost that a business has incurred, but cannot recover
The yen, peso, and euro are types of
A. bonds.
B. money.
C. stock.
D. dollars.
Which of the following securities is most likely to be bought and sold on a money market:
A. Short-term equity securities
B. Long-term debt securities
C. Short-term debt securities
D. Long-term equity securities
In the past 20 years, Country X has reformed its trade policies and currency exchange rate system. As a result, foreign investment is increasing, and the country's business activity and gross domestic product is rapidly growing. This is an example of a(n)
A. integrated financial market.
B. emerging market economy.
C. recession-proof economy.
D. industrial-based market.
What is a Financial Analysis?
Evaluating an organization's financial statements to determine the profitability of the organization, a division with the organization or a specific event or project.
The way a business interacts with its customers in order to obtain new customers while maintaining the current customer base
A cost that a business has incurred, but cannot recover
Accounting that focuses on revenues and expenses of a business, reporting variances to management.
One disadvantage of marginal analysis is that it does not account for
A. outsourcing.
B. sunk costs.
C. qualitative factors.
D. labor costs.
You want to have $8,000 in three years to purchase a car. You can earn 4% compound interest on your investment. How much should you invest today?
A. $7,821.47
B. $7,364.10
C. $7,692.31
D. $7,111.75
When using presentation software to develop a slideshow presentation, it is best to
A. limit the presentation to twelve or fewer slides.
B. avoid the use of decorative fonts.
C. include flashy background designs.
D. use a lot of clipart to add interest.
Lynnette works at Main Street Bank. Her primary job responsibility is to determine if the bank should lend
funds to the bank's customers. Lynnette is working as a(n)
A. collections officer.
B. credit analyst.
C. chartered financial consultant.
D. bank agent.
What technology can businesses use to reduce the risk of network security breaches?
A. Concurrency control applications
B. Teleprompter devices
C. Intrusion detection systems
D. Pirated software programs
What is the Time Value of Money?
A. the increase of an amount of money due to interest earned over time or dividends paid
B. composed of the companies involved in buying and selling of insurance
C. Those costs which cannot be directly linked to a good service or project
D. A cost that a business has incurred, but cannot recover
As the unemployment rate has increased, Peppy Pizzeria's sales have decreased. The restaurant's profits have declined because of
A. greater demand for pizza.
B. a downturn in the economy.
C. lower operating expenses.
D. higher cost of goods.
During a recession, interest rates are likely to __________ because demand for money is __________.
A. decrease; strong
B. increase; strong
C. decrease; weak
D. increase; weak
Tariffs, quotas, subsidies, and licenses are all examples of trade
A. allowances.
B. restrictions.
C. guidelines.
D. penalties.
Annie currently has $20,000 of mortgage debt, $3,000 of credit card debt, and $15,000 of student loan debt. These are all examples of
A. liabilities.
B. negative debt.
C. positive debt.
D. personal assets.
Which financial market focuses on protecting individuals and organizations against risk?
A. Insurance market
B. Commodities market
C. Capital market
D. Stock market
Which of the following sources is most likely to provide nonbiased, factual information to help investors evaluate the financial health of a company with publicly traded stock:
A. Public stock exchanges
B. Financial statements on the company's website
C. Performance reviews posted online by other investors
D. Governmental tax agencies
When creating a cash flow statement, which of the following is included in a business's cash paid out:
A. Cash receipts
B. Ending cash balance
C. Cost of goods
D. Sale of assets
If a decision maker chooses a software package with a lower initial purchase price, what type of cost has s/he considered?
A. Indirect cost
B. Direct cost
C. Sunk cost
D. Opportunity cost
Accurate financial-information management improves a business's payment cycles by
A. improving the business's trustworthiness.
B. optimizing accounts payable and accounts receivable.
C. allowing for better sales forecasting.
D. giving companies a way to evaluate their tax liability.
Forming an evaluation team; defining the product, service, or material; and determining the business requirements are all steps of
A. vendor selection.
B. financial analysis.
C. marketing research.
D. customer targeting.
Every six months, a company holds a meeting for all shareholders and explains how the company has
been performing financially. Which component of a well-governed company is this an example of?
A. Transparency
B. Accountability
C. Fairness
D. Viability
