DECA finance

Equity

Includes earnings that a company has retained and the amount of funds invested in that company by its owners

Internal audit

An examination of an organization's financial statements that is conducted by an employee of the organization

Equity

Includes earnings that a company has retained and the amount of funds invested in that company by its owners

Internal audit

An examination of an organization's financial statements that is conducted by an employee of the organization

trade quota

restriction that limits the quantity of goods which can move in and out of the country

indirect costs

Those costs which cannot be directly linked to a good service or project

Compliance officer

An employee of a business or other organization whose task is to ensure that regulations imposed by a government agency are being met as well as internal policies and procedures

Voluntary compliance

The assumption that taxpayers will stay in compliance with tax laws and accurately report their income amounts and tax deductions fairly and honestly

Financial globalization

The worldwide development of economic, financial, trade and communication integration. This pushes business executives to consider broad views in the global marketplace as counties and their economies become interconnected and interdependent

contextual reasoning

used to consider each financial transaction's circumstances and how they compare to historical patterns in the system.

coupon credit plan

issues coupons to be paid for over a period of time and to be used by customers in making purchases

worker's compensation insurance

insurance purchased by employers to provide benefits to employees who are injured on the job

Direct cost

Those costs which can be directly tied to a good, service, or product

Reporting

Used in finance to disclose an organization's financial standing

Information management

The process of collecting and analyzing data that be used in the strategic decision making process for a business.

External audit

An examination of an organization's financial statements by an independent accountant, not affiliated with the organization

Solvency

Refers to the ability of an organization to meet its financial obligations.

Property tax

The main source of money for many local governments. This tax is based on the value of property such as land and buildings

Managerial accounting

Accounting that focuses on revenues and expenses of a business, reporting variances to management.

Regression

A data-mining technique that takes a numerical dataset and develops a mathematical formula that fits the data

Sustainability reporting

Reporting by an entity that outlines its' economic environmental and social performance

Insurance market

composed of the companies involved in buying and selling of insurance

time value of money

the increase of an amount of money due to interest earned over time or dividends paid

Sunk cost

A cost that a business has incurred, but cannot recover

Accounting system

The (often) computerized system of collecting, processing, analyzing and presenting accurate financial data to support management decisions

Customer relations

The way a business interacts with its customers in order to obtain new customers while maintaining the current customer base

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.

Securities information

Information provided regarding an investment instrument issued by a corporation, government or other organization that demonstrates whether it is debt or equity.

Finance

The process of managing money for an individual, business or other organization

Differential cost

The difference in cost between two or more business decisions

Risk avoidance

Used when a business anticipates risk and refrains from certain business activities in order to avoid the risk

Currency

Money

Risk management

Monitoring the opportunity for loss for a business

Transparency

Fully and accurately disclosing of financial information to the public

Board of Directors

A group of individuals elected by stakeholders of an organization to govern the organization

Six sigma

The strategy involves creating groups of people within the business or organization who have expert status in various methods, and then each project is carried out according to a set of steps in an effort to reach specific financial milestones. A six sigma process is defined as one in which 99.99966% of products created are expected to be statistically free from defects

Inflation

Refers to rising prices and is an indicator of the stability of an economy

Insurance

A contract between a business and the insurer that covers a specific business risk

Management Functions

The four functions of management include: planning, organizing, leading, and controlling

Classification

A data-mining technique that uses a decision tree that requires a series of decisions

Corporate governance

Refers to the rule and practices that direct and control an organization

Professional relationship

Contacts made through business connections and interactions

Variance Analysis

Refers to the difference between a planned and actual budget

Marginal Analysis

A decision making tool that compares the cost of an activity versus the benefits of the activity

Professional Development

Process of improving capabilities of staff through access to education and training opportunities in the workplace, through outside organizations, or observing others perform the job

Cost allocation

Refers to the method in which indirect costs are assigned to a product

Activity based costing

A method used by businesses to accurately allocate overhead costs to specific products

Risk transfer

A strategy in which an insurance risk is shifted to another party (the insurer) by means of an insurance policy

Data

Information in an unorganized form (alphabets, numbers or symbols) that have a relationship with current conditions, ideas, or knowledge

income tax

Calculated as a percentage of the taxable income workers earn while on the job

money market

A network of banks, discount houses, institutional vendors , and money dealers who borrow and lend among themselves for the short term (90 days). Any investment has risk, but a money market account is considered a safe place to invest due to its short term nature

External risk

The possibility of loss, damage or injury outside of a business or other organization

consolidation

Combining assets, equity, liabilities and operating accounts of a business and IRS subsidiaries into one financial statement or combining two or more businesses through the purchase, merger or ownership transfer to create a new business

Creditor

The entity that provides available capital resources to debtors, in exchange for compensation

Risk management

The process of controlling an individual, business or other organizations opportunity for damage, loss or injury to ensure the safety of the community, environment and legal responsibilities

Inventory system

An inventory system allows a business to maintain the optimum number of each item. In doing so, a business can operate production of a good or service, sales or customer service at a lower cost

Compliance

Verification that a vendor meets the requirements of accepted practices, regulations, legislation, rules, standards and/or the terms of a contract

sales tax

Charged to customers as a percentage of the price of the item being purchased

Financial Institution

Organizations that are public or private whom act as a channel between savers and borrowers of funds. There are two types of institutions: depository and non-depository. Depository organizations are usually banks or credit unions. Non-depository organizations are often recognized as insurance companies or mutual funds

Financial records

The financial documentation for an individual, business or other organization. The most common records are a Cash Flow Statement, Income Statement, Balance Sheet and Tax Returns

Financial position

The status of the assets, liabilities and owner's equity of an individual, business or other organization as shown in its financial statements

Savings

The portion of disposable income that is not spent on essential expenses in a household or business. A variety of savings vehicles are available to increase the value of savings including a bank savings account, stocks, bonds, etc

estate tax

A tax paid on wealth, collected after a person has died

Financial information management

Managing data such as credit card numbers, accounting balances or other monetary facts about an individual, business or other organization that are used when evaluating credit, loans, or other financial activities

Perpetual inventory system

An inventory systems that continually keeps track of the number of items in inventory, and can be done manually or by computer

Expenditure

The payment of cash for goods or services to settle an obligation; usually seen as an invoice or a receipt

Costing

A process to determine the cost of production or operation of a business by assigning expenses to various stages of production or operations of a firm

Debtor

A person or business that owes money, goods or services to another

Accounting

A system that monitors an individual, business or other organizations financial standing. This includes recording and verifying financial information to determine a profit or loss for a given time period as well as the value of assets, liabilities and owners equity

inventory management

The process of buying and storing materials and products while controlling costs

Internal risk

The possibility of loss, damage or injury within a business or other organization

Securities and Exchange Commission (SEC)

Government agency created in 1934 that is responsible for enforcing securities-related laws and setting standards for financial information about businesses that are traded on a stock exchange.

master-servant relationship

refers to the amount of control that a principal has over an agent

administrative law

deals with the rules and regulations that have been established by governmental agencies.

private enterprise

an economic system in which individuals and groups, rather than government, own or control the means of production

fiduciary

a financial professional who has been given legal authority to make financial transactions on behalf of an individual or business

fiduciary responsibility

involves making wise financial decisions and obtaining financial products that will help the client achieve his/her financial goals.

tax-deductible gifts

the donor pays a reduced amount of tax or is exempt from paying the tax, depending on the type and value of the gift.

virtual auditor

a type of compliance technology that uses multiple reasoning processes to continuously review financial transactions and processes to identify errors and/or compliance violations

comparative reasoning

used to identify financial system transactions that are very similar to each other but not exactly alike.

temporal reasoning

involves considering the timing of a financial transaction

cross-source reasoning

used to compare financial transactions and processes in multiple financial systems

environmental distractions

aspects of the setting that take away from a listener's ability to listen

executive summary

a section of a formal report that highlights the most important information that appears in the body of the document

company's image

the way a person or group views the company; the combined impressions and experiences associated with the company

hedge funds

exclusive investment partnerships that typically require a large minimum investment

data-cleansing process

removes duplicate records, updates expired data, and completes incomplete data fields. An effective round of this results in a database that contains useful, relevant, and accurate data.

shopping goods

consumer products that are purchased by consumers after comparing products and stores to get the best quality, price, and/or service.

capital goods

manufactured or constructed items used in the production of goods and services

convenience goods and services

goods and services purchased quickly and without much thought or effort by ultimate consumers

specialty goods

consumer products with special or unique characteristics that consumers are willing to exert special efforts to obtain

relative prices

come into play when both wages and prices rise or fall at the same rate, so that consumers are willing to pay the new price

competitive prices

prices that are about equal to or lower than those of a business's competitors

unfair prices

prices that are either too high for the good or service provided, or too low in comparison to those of competitors

objective prices

prices that are fair and reasonable, relating strictly to the value of the product

philanthropic responsibility

part of a business's overall social responsibility-does not relate to political campaigns, scientific research, or the economy

pure risks

risks that carry with them the possibility of loss or no loss

speculative risks

those risks that may result in a loss, no change, or a gain.

absolute advantage

when a nation can produce a product for less than other nations

comparative advantage

achieved by a nation from specializing in and producing goods and services at which it is relatively most efficient

trade surplus

occurs when a nation's exports are greater than ints imports

joint venture/strategic alliance

an arrangement that involves two or more businesses entering into a short-term relationship by combining complementary resources such as technology, skills, capital, or distribution channels for the benefit of all parties.