DECA

What are forms of financial exchange?

Cash, debit, credit, checks, and electronic transfers. Each impacts fees, records, speed, and security.

What counts as currency?

Coins, paper money, banknotes, and government-issued securities like treasury notes.

What are the three functions of money?

Medium of exchange, unit of measure, and store of value.

What are common sources of income and compensation?

Wages, salaries, bonuses, commissions, interest, dividends, and business profits.

What is the time value of money?

Money today is worth more than the same amount later because it can earn interest.

Why is credit important?

It allows purchases now, builds credit history, spreads payments, and supports business growth.

What legal responsibilities come with financial products?

Disclosures, fair lending, truthful advertising, privacy protection, and honoring contracts.

Why do we save and invest?

To prepare for emergencies, avoid debt, reach goals, and build wealth.

What are SMART financial goals?

Specific, Measurable, Achievable, Relevant, and Time-bound.

What is a personal budget?

A plan for how income will be spent, saved, and invested.

How do you calculate net worth?

Assets − Liabilities = Net Worth.

What are tax liabilities?

The amount of money owed to the government based on income, sales, or property.

What does a pay stub show?

Gross pay, deductions (taxes, benefits), and net pay.

What’s important when writing checks?

Correct date, payee, amount, signature, and accurate recordkeeping.

Why keep financial records?

To track spending, prepare taxes, avoid fraud, and plan future finances.

What does balancing a bank account mean?

Matching your records with the bank’s to find errors or missing transactions.

Why give to charity?

Personal values, community support, and potential tax benefits.

Why manage financial accounts online?

Faster payments, real-time tracking, and fraud alerts.

What is wise credit use?

Borrow only what you can repay, pay on time, and keep balances low.

Why check credit history?

To ensure accuracy, detect fraud, and understand borrowing power.

What is wise credit use?

Borrow only what you can repay, pay on time, and keep balances low

What are responsible financial decisions?

Choices that consider costs, benefits, risks, and long-term goals.

How do you protect against identity theft?

Strong passwords, monitoring accounts, shredding documents, and freezing credit if needed.

Why pay bills on time?

Avoid late fees, protect credit score, and maintain services.

What matters when applying for a loan?

Credit score, income, debt, collateral, and interest rate.

How can someone control debt?

Budgeting, paying more than minimums, and reducing unnecessary spending.

Why complete income tax forms?

To report income, claim deductions, and pay the correct amount of tax.

What are options to finance college?

Scholarships, grants, savings plans, work-study, and student loans.

Why plan for retirement early?

Compound growth, reduced stress, and future financial independence.

What is estate planning?

Deciding how assets will be distributed after death (wills, trusts, beneficiaries).

What are financial-services providers?

Banks, credit unions, brokerage firms, insurance companies, and fintech firms.

What should you consider when choosing a provider?

Fees, services, safety, accessibility, and customer service.

What are common investment types?

Stocks, bonds, mutual funds, real estate, and retirement accounts.

What is insurance?

A risk-management tool where you pay premiums to transfer financial risk to an insurer.

How do you determine insurance needs?

Evaluate risks, assets to protect, dependents, and income.

Why do businesses need financial information?

To budget, make decisions, track performance, and satisfy stakeholders.

What is accounting?

Recording, summarizing, and reporting financial transactions.

Why is ethics important in accounting?

To ensure honesty, trust, and accurate reporting.

How is technology used in accounting?

Automates records, reduces errors, and speeds analysis.

What legal rules affect accounting?

Reporting standards, tax laws, and regulations requiring truthful records.

What is a cash flow statement?

A report showing cash coming in and going out.

What is a balance sheet?

A snapshot of assets, liabilities, and equity at a specific time.

What is an income statement?

Shows revenue, expenses, and profit over a period.

What is the role of finance in business?

Managing money so the company can operate, invest, and grow.

Why is ethics important in finance?

Protects consumers, prevents fraud, and builds trust.

What legal rules affect finance?

Lending laws, disclosure requirements, and consumer protections.

What is a budget?

A plan for expected income and expenses.

What do financial institutions do?

They accept deposits, make loans, move money, and support investments.

What are major financial markets?

Money, capital, insurance, and commodities markets.

What is consolidation?

When financial firms merge to cut costs, increase efficiency, or meet regulations

How do economic conditions affect markets?

Growth raises profits and prices; recessions lower spending and valuations.

What is financial globalization?

Money and investments move across borders, linking world economies.

Where do investors get securities information?

Financial news, company reports, brokerage platforms, and market data sites.

What does a securities table show?

Price, volume, highs/lows, dividends, and performance trends.

What does the statement of changes in equity show?

How owners’ equity changed due to profits, losses, and dividends.

How do you calculate TVM?

Use formulas showing how money grows with interest over time (future/present value).

What are key cost types?

Direct, indirect, fixed, variable, sunk, and differential costs.

What is marginal analysis?

Comparing extra cost vs. extra benefit when making decisions.

What is managerial accounting?

Using financial data to make internal business decisions.

What is variance analysis?

Comparing budgeted results to actual results to find issues.

What are cost accounting budgets?

Plans estimating costs needed for operations or production.

What is cost allocation?

Assigning indirect costs (like utilities or overhead) to different departments or products.