DECA Corporate Finance Career Pathway - Performance Indicators

Comply with financial reporting and internal control laws and regulations in corporate finance.

1

Explain the impact of business customs and practices on global trade.

2

Describe the nature of business customs and practices in the North American market.

Explain the nature of business customs and practices in Western Europe.

Explain the nature of business customs and practices in Eastern Europe.

Explain the nature of business customs and practices in Latin America.

Describe the nature of business customs and practices in the Pacific Rim.

Discuss the nature of business customs and practices in the Middle East.

Explain the nature of business customs and practices in South Asia.

Describe the nature of business customs and practices in Northern Africa.

Discuss the nature of business customs and practices in Sub-Saharan Africa.

Discuss the nature of depreciation.

Describe the nature of cash flows.

Discuss the nature of corporate bonds.

Discuss the cost of corporate bonds.

Discuss the issuance of stock from a corporation.

Discuss the cost of common stock.

Discuss the nature of stock options.

Discuss the nature of Initial Public Offerings.

Describe components of a payment system.

Describe components of a collection system.

Manage bank accounts (e.g., scope of services, fee structures, system integration).

Describe the nature of short-term financial management.

Describe cash management procedures.

Explain the use of cash budgets.

Analyze the impact of accounts payable schedules on working capital.

Analyze the impact of accounts receivable collection on working capital cycle.

Discuss the impact of employee benefits on business financials.

Discuss the impact of obsolescence on business expense.

Prepare cash flow budgets/forecasts.

Analyze cash budget/forecast variances.

Evaluate leases.

Develop policies to manage trade credit.

Explain the role of capital markets in business finance.

Calculate stock-related values (e.g., the value of a constant growth stock, the expected value of future dividends, the expected rate of return, etc.).

Calculate bond-related values (e.g., the price of a bond given its yield to maturity, the coupon interest payment for a bond, the effects of interest rates on the price of a bond, etc.).

Explain the nature of capital investment.

Explain methods used to analyze capital investments (e.g., payback period, discounted break-even, net present value, accounting rate of return, internal rate of return, etc.).

Explain the impact of the cost of capital on capital investments.

Calculate the cost of capital and its components (e.g., debt, equity).

Calculate cash flows associated with an investment (e.g., initial investment, operating cash inflows, operating cash outflows, terminal flows).

Use the time value of money to make business decisions (e.g., projects, investments, etc.).

Calculate capital investment return (e.g., payback, net present value, internal rate of return).

Identify project benefits and costs.

Monitor project portfolio.

Manage loans.

Manage investment portfolio.

Manage pension investment portfolio.

Explain forms of dividends.

Explain the nature of dividend reinvestment plans (DRIPs).

Discuss the financial planning process.

Discuss the nature of short-term (operating) financial plans.

Differentiate among management accounting responsibility centers (i.e., cost, profit, investment, revenue).

Discuss the use of cost-volume-profit analysis.

Discuss cost accounting systems (e.g., job order costing, process costing, activity-based costing [ABC], project costing, etc.).

Distinguish between variable costing and absorption costing.

Describe common management accounting performance measures (e.g., balanced scorecard, return on investment [ROI], customer profitability analysis, etc.).

Discuss the role of standard costing in the preparation and analysis of budgets.

Describe the nature of flexible budgets.

Explain the role of transfer pricing in managerial accounting.

Explain the impact of business operational practices (e.g., total quality management [TQM], lean production, just-in-time [JIT], etc.) on managerial accounting.

Perform budgetary cost analysis (e.g., direct cost, indirect cost, sunk cost, differential cost, etc.).

Perform responsibility center budgeting (i.e., cost, profit, investment, revenue).

Discuss the nature of pro forma statements.

Discuss the analysis of a company's financial situation using its financial statements.

Discuss external forces affecting a company's value.

Explain how value is created for a company.

Analyze transactions and accounts (e.g., purchase, sales, sales returns and allowances, uncollectible accounts, depreciation, debt).

Compare mergers and acquisitions.

Explain the nature of hostile takeovers.

Explain divestiture concepts (e.g., spin-offs, split-ups, etc.).

Explain the purpose of internal accounting controls.

Maintain internal accounting controls.

Describe manual and computerized treasury systems.

Describe the nature of Extensible Business Reporting Language (XBRL).

Use treasury systems (e.g., cash management, budgeting, forecasting).

Explain the role and responsibilities of financial management personnel.

Describe the role and responsibilities of risk management personnel.

Discuss the role and responsibilities of treasury management personnel.

Explain professional designations in the field of business finance (e.g., CF, CFA, CCM, CTP, CFM, etc.).

Discuss the roles and responsibilities of accounting-standard-setting bodies (i.e., SEC, FASB, IASB, GASB).

Compare U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).

Identify financial risk factors associated with business contracts (e.g., ratio requirements, restricted transactions, financial report filing requirements).

Monitor for breach of contract of non-performance related terms and conditions.

Maintain contract compliance documentation.

Evaluate alternative revenue arrangements (e.g., cost-plus pricing, contingent fees).

Establish monitoring programs for contract-specific revenue arrangements.

Develop monitoring programs for restrictive contract requirements.

Establish processes for timely reporting of required information.

Discuss the relationship between risk management and business finance.

Describe types of financial risks (e.g., interest rate risk, equity risk, commodity risk, etc.).

Discuss the nature of risk measurement.