DECA Finance Exam Questions With Complete Solutions
3. Which of the following is an example of a voluntary debtor-
creditor relationship:
A. Requiring specific information
B. Receiving a monetary gift
C. Obtaining a loan from a bank
D. Owing punitive damages Correct Answer C. Obtaining a
loan from a bank
A business selects specific characteristics about its customers
and uses software to obtain data from its
database, which will help the business identify, evaluate, and
group its customers' buying behaviors. The
business is using the ____________ data-mining technique.
A. primary
B. organic
C. statistical
D. clustering Correct Answer D. clustering
A business that fails to provide accurate financial information in
the required time frame to a government
agency may be subject to
A. monetary fines.
B. tax reductions.
C. payroll exemptions.
D. regulatory subsidies. Correct Answer A. monetary fines.
A business's balance sheet lists $3,800 in cash, $15,125 in
accounts payable, $2,775 in taxes, $10,350
,in machinery and equipment, and $6,280 in salaries. Calculate
the business's total liabilities.
A. $27,030
B. $18,470
C. $15,225
D. $24,180 Correct Answer D. $24,180
A business's cash flow statement for one month indicates cash
sales of $4,275, credit sales of $2,960,
shipping costs of $525, and fixed expenses of $2,380. Calculate
the total cash receipts.
A. $2,960
B. $4,275
C. $6,655
D. $7,235 Correct Answer B. $4,275
A characteristic of managerial accounting is that it focuses on
A. reporting the business's long-term investment goals.
B. capturing the business's day-to-day financial activities.
C. developing the business's annual report.
D. preparing and submitting the business's tax forms. Correct
Answer B. capturing the business's day-to-day financial
activities.
A commission or bonus is an example of a form of
A. employee contract.
B. assistance program.
C. benefit.
D. compensation. Correct Answer D. compensation.
,A company purchases an expensive new software system and
divides the cost of it between the two
departments that will use the system. This is an example of cost
A. allocation.
B. accumulation.
C. dividing.
D. precision. Correct Answer A. allocation.
A company that makes one specialty item at a time is using what
type of production system?
A. Batch
B. Unit
C. Mass
D. Assembly line Correct Answer B. Unit
A form of business ownership in which the owners own shares
of stock is known as a
A. corporation.
B. consolidation.
C. partnership.
D. proprietorship. Correct Answer A. corporation.
A member of a sales team said, "Our sales always decline this
time of year. We just need to wait a few
months until they pick up again." What barrier to creativity is
the sales-team member exhibiting?
A. Criticism
B. Need to be right the first time
C. Limiting code of behavior
D. Stress Correct Answer C. Limiting code of behavior
, A persuasive message that asks a person to do something should
be written in a way that makes it easy
for the person to
A. respond positively.
B. organize logically.
C. answer politely.
D. read slowly. Correct Answer A. respond positively.
A primary factor that has led to the consolidation of financial
firms is the desire
A. to lower risks.
B. for fewer assets.
C. for fewer products.
D. to lower costs. Correct Answer D. to lower costs.
A primary reason why business people analyze financial
variances is to
A. increase market share.
B. identify problems.
C. negotiate contracts.
D. organize workflow. Correct Answer B. identify problems.
A primary reason why businesses implement financial audit
trails is to
A. evaluate their profitability ratios.
B. ensure that financial reports are prepared quickly.
C. monitor the daily activities of the securities exchanges.
D. reduce risks associated with intentional data tampering.
Correct Answer D. reduce risks associated with intentional data
tampering.
3. Which of the following is an example of a voluntary debtor-
creditor relationship:
A. Requiring specific information
B. Receiving a monetary gift
C. Obtaining a loan from a bank
D. Owing punitive damages Correct Answer C. Obtaining a
loan from a bank
A business selects specific characteristics about its customers
and uses software to obtain data from its
database, which will help the business identify, evaluate, and
group its customers' buying behaviors. The
business is using the ____________ data-mining technique.
A. primary
B. organic
C. statistical
D. clustering Correct Answer D. clustering
A business that fails to provide accurate financial information in
the required time frame to a government
agency may be subject to
A. monetary fines.
B. tax reductions.
C. payroll exemptions.
D. regulatory subsidies. Correct Answer A. monetary fines.
A business's balance sheet lists $3,800 in cash, $15,125 in
accounts payable, $2,775 in taxes, $10,350
,in machinery and equipment, and $6,280 in salaries. Calculate
the business's total liabilities.
A. $27,030
B. $18,470
C. $15,225
D. $24,180 Correct Answer D. $24,180
A business's cash flow statement for one month indicates cash
sales of $4,275, credit sales of $2,960,
shipping costs of $525, and fixed expenses of $2,380. Calculate
the total cash receipts.
A. $2,960
B. $4,275
C. $6,655
D. $7,235 Correct Answer B. $4,275
A characteristic of managerial accounting is that it focuses on
A. reporting the business's long-term investment goals.
B. capturing the business's day-to-day financial activities.
C. developing the business's annual report.
D. preparing and submitting the business's tax forms. Correct
Answer B. capturing the business's day-to-day financial
activities.
A commission or bonus is an example of a form of
A. employee contract.
B. assistance program.
C. benefit.
D. compensation. Correct Answer D. compensation.
,A company purchases an expensive new software system and
divides the cost of it between the two
departments that will use the system. This is an example of cost
A. allocation.
B. accumulation.
C. dividing.
D. precision. Correct Answer A. allocation.
A company that makes one specialty item at a time is using what
type of production system?
A. Batch
B. Unit
C. Mass
D. Assembly line Correct Answer B. Unit
A form of business ownership in which the owners own shares
of stock is known as a
A. corporation.
B. consolidation.
C. partnership.
D. proprietorship. Correct Answer A. corporation.
A member of a sales team said, "Our sales always decline this
time of year. We just need to wait a few
months until they pick up again." What barrier to creativity is
the sales-team member exhibiting?
A. Criticism
B. Need to be right the first time
C. Limiting code of behavior
D. Stress Correct Answer C. Limiting code of behavior
, A persuasive message that asks a person to do something should
be written in a way that makes it easy
for the person to
A. respond positively.
B. organize logically.
C. answer politely.
D. read slowly. Correct Answer A. respond positively.
A primary factor that has led to the consolidation of financial
firms is the desire
A. to lower risks.
B. for fewer assets.
C. for fewer products.
D. to lower costs. Correct Answer D. to lower costs.
A primary reason why business people analyze financial
variances is to
A. increase market share.
B. identify problems.
C. negotiate contracts.
D. organize workflow. Correct Answer B. identify problems.
A primary reason why businesses implement financial audit
trails is to
A. evaluate their profitability ratios.
B. ensure that financial reports are prepared quickly.
C. monitor the daily activities of the securities exchanges.
D. reduce risks associated with intentional data tampering.
Correct Answer D. reduce risks associated with intentional data
tampering.
