Set 2 of DECA Finance Exam Terms and Concepts for DECAmaxxing

2 areas of responsibility for compliance departments

Identification and prevention.

Annual Present Value Equation

FV / (1 + ROR)^n

Cornell Method of note-taking

The page is divided into three or four sections.

When a customer-centric business constantly strives to align its objectives and activities with customer needs by stressing innovation and technology, it is engaging in…

Business process management

Seller’s market

There is high demand, low supply, and rising prices.

Advantage of unions for businesses

They help with the recruitment of new employees.

BATNA

Stands for "Best Alternative to a Negotiated Agreement," representing the most advantageous course of action a party can take if negotiations fail and no agreement is reached.

Main reason why businesses offer credit

To be competitive.

“First step” pattern

Identify… or Determine…

An external source of corporate information that can aid an organization in understanding securities

Investment research firms.

Equity market

It is where investors and traders buy and sell stock.

Spot market

Trade of financial instruments for immediate delivery.

This is true about equity statements

They report changes in a company's equity.

Retained earnings formula

Beginning period retained earnings+Net income (or loss)−Net dividends

Avoidable costs

Costs that can be eliminated by no longer engaging in a certain business or operational activity.

Goal of marginal analysis

Marginal revenue exceeds marginal cost.

Cost accounting is an activity used mainly in __________ accounting.

Managerial.

This is true about accounting information systems

They help a company's different departments work together.

Data normalization involves creating a(n) __________ for all data within an organization.

Standard format.

A claims adjuster in most likely to work in…

Insurance.

Claims adjuster

Works for an insurance company and evaluates damage, liability, and costs after an accident, loss, or disaster.

Generally, a company’s board of directors makes decisions on behalf of the company as a(n)…

Fiduciary.

What helps businesses predict risk for a given strategy or initiative?

Risk model.

What is a possible legal result of effective risk management?

Reduced liability exposure.

Best way to describe enterprise risk management (ERM)

Firmwide strategy.

Secondary market

Is a place where investors can buy and sell securities that have been issued by a corporation; is the stock market.

Certificates of Deposits

A low-risk lending investment.

HTML

Provides the structure or skeleton of the web page.

CSS

Provides the visual appearance or skin of the web page.

10-Q

Also called a quarterly report, provides content about a company's fiscal quarter.

10-K

Also known as an annual report, gives an overview of a company's fiscal year and includes financial information along with insight into the company's leadership, mission, and culture.

8-K

Also called a current events report, provides current information to investors after an event affects the company.

Zero-based budget

Used to determine specific dollar amounts for their budgets. Requires managers to demonstrate the need for every expense instead of relying on figures from a previous period, in effect, the budgets start from zero.

What is an advantage of spot markets?

They tend to be incredibly liquid.

Rent and payroll are what types of costs?

Indirect

Accrual accounting method

Journalize income and expenditures at the time they occur even if no money changes hands at that time.

What are descriptive statistics?

Used to describe basic features of data in a study.

What is the relationship between stock and bond prices?

Inverse

Pull promotional strategies

Promote their products directly to the ultimate consumer or industrial user to generate customer interest in the products.

Push promotional strategies

Promote their products to intermediaries who then promote the products to customers.