DECA FINANCE EXAM STUDY GUIDE
debtor-creditor relationship - Answers -A debtor is someone who owes a financial
obligation (a "debt") to another, known as the creditor. Interest must be charged.
affinity fraud - Answers -- Affinity fraud refers to investment scams that prey upon
members of identifiable groups, such as religious or ethnic communities, the elderly, or
professional groups.
- The fraudsters who promote affinity scams frequently are - or pretend to be - members
of the group.
- Many affinity scams involve Ponzi or Pyramid schemes
phishing - Answers -the fraudulent practice of sending emails purporting to be from
reputable companies in order to induce individuals to reveal personal information, such
as passwords and credit card numbers.
Types of communication (up and downward and lateral) - Answers -- Upward: process
of information flowing from the lower levels of a hierarchy to the upper levels
- Downward: occurs when information and messages flow down through an
organization's formal chain of command or hierarchical structure. In other words,
messages and orders start at the upper levels of the organizational hierarchy and move
down toward the bottom levels.
- Lateral/Horizontal: the exchange, imparting or sharing of information, ideas or feeling
between people within a community, peer groups, departments or units of an
organization who are at or about the same hierarchical level as each other for the
purpose of coordinating activities, efforts or fulfilling a common purpose or goal.
economic resources - Answers -Economic resources are the goods or services
available to individuals and businesses used to produce valuable consumer products.
Include land, labor, capital, and entrepreneurship, also known as factors of production.
convergence ratio - Answers -the measure of a company's ability to meet its financial
obligations. In broad terms, the higher the coverage ratio, the better the ability of the
enterprise to fulfill its obligations to its lenders.
financial consolidation - Answers -the process of combining financial data from several
departments or business entities within an organization, usually for reporting purposes.
Data Mining - Answers -- the practice of examining large databases in order to
generate new information. (the process of automated extraction of hidden, previously
unknown and potentially useful information from large databases.)
- Includes artificial neutral networks, decision trees, dashboards, nearest-neighbor
method
, Artificial Neutral Networks - Answers -Set up in a similar way to neurons in our brain.
We use a digital computer to run a simulation of a bunch of heavily interconnected little
mini-programs which stand in for the neurons of our simulated neural network.
Decision Trees - Answers -a decision support tool that uses a tree-like graph or model
of decisions and their possible consequences, including chance event outcomes,
resource costs, and utility. It is one way to display an algorithm.
Dashboards - Answers -a user interface that, somewhat resembling an automobile's
dashboard, organizes and presents information in a way that is easy to read.
Nearest Neighbor Method - Answers -a prediction technique that is quite similar to
clustering - its essence is that in order to predict what a prediction value is in one record
look for records with similar predictor values in the historical database and use the
prediction value from the record that it "nearest" to the unclassified record.
Industry forecasting - Answers -Forecasting is the use of historic data to determine the
direction of future trends. Businesses utilize forecasting to determine how to allocate
their budgets or plan for anticipated expenses for an upcoming period of time. This is
typically based on the projected demand for the goods and services they offer.
operating agreement - Answers -an agreement among limited liability company
members governing the LLC's business, and members' financial and managerial rights
and duties.
profit-loss statement - Answers -financial statement that summarizes the revenues,
costs and expenses incurred during a specific period of time
cost standard - Answers -the practice of substituting an expected cost for an actual cost
in the accounting records, and then periodically recording variances showing the
difference between the expected and actual costs. Used to save time
balanced scorecard - Answers -a strategic planning and management system that is
used extensively in business and industry, government, and nonprofit organizations
worldwide to align business activities to the vision and strategy of the organization,
improve internal and external communications, and monitor organization performance
against strategic goals.
query - Answers -a question, especially one addressed to an official or organization,
especially in order to express one's doubts about it or to check its validity or accuracy.
Includes select, data-definition, crosstab, pass-through.
Select query - Answers -One of the easiest to use and can be used to select and
display data from either one table or a series of them depending on what is needed.
debtor-creditor relationship - Answers -A debtor is someone who owes a financial
obligation (a "debt") to another, known as the creditor. Interest must be charged.
affinity fraud - Answers -- Affinity fraud refers to investment scams that prey upon
members of identifiable groups, such as religious or ethnic communities, the elderly, or
professional groups.
- The fraudsters who promote affinity scams frequently are - or pretend to be - members
of the group.
- Many affinity scams involve Ponzi or Pyramid schemes
phishing - Answers -the fraudulent practice of sending emails purporting to be from
reputable companies in order to induce individuals to reveal personal information, such
as passwords and credit card numbers.
Types of communication (up and downward and lateral) - Answers -- Upward: process
of information flowing from the lower levels of a hierarchy to the upper levels
- Downward: occurs when information and messages flow down through an
organization's formal chain of command or hierarchical structure. In other words,
messages and orders start at the upper levels of the organizational hierarchy and move
down toward the bottom levels.
- Lateral/Horizontal: the exchange, imparting or sharing of information, ideas or feeling
between people within a community, peer groups, departments or units of an
organization who are at or about the same hierarchical level as each other for the
purpose of coordinating activities, efforts or fulfilling a common purpose or goal.
economic resources - Answers -Economic resources are the goods or services
available to individuals and businesses used to produce valuable consumer products.
Include land, labor, capital, and entrepreneurship, also known as factors of production.
convergence ratio - Answers -the measure of a company's ability to meet its financial
obligations. In broad terms, the higher the coverage ratio, the better the ability of the
enterprise to fulfill its obligations to its lenders.
financial consolidation - Answers -the process of combining financial data from several
departments or business entities within an organization, usually for reporting purposes.
Data Mining - Answers -- the practice of examining large databases in order to
generate new information. (the process of automated extraction of hidden, previously
unknown and potentially useful information from large databases.)
- Includes artificial neutral networks, decision trees, dashboards, nearest-neighbor
method
, Artificial Neutral Networks - Answers -Set up in a similar way to neurons in our brain.
We use a digital computer to run a simulation of a bunch of heavily interconnected little
mini-programs which stand in for the neurons of our simulated neural network.
Decision Trees - Answers -a decision support tool that uses a tree-like graph or model
of decisions and their possible consequences, including chance event outcomes,
resource costs, and utility. It is one way to display an algorithm.
Dashboards - Answers -a user interface that, somewhat resembling an automobile's
dashboard, organizes and presents information in a way that is easy to read.
Nearest Neighbor Method - Answers -a prediction technique that is quite similar to
clustering - its essence is that in order to predict what a prediction value is in one record
look for records with similar predictor values in the historical database and use the
prediction value from the record that it "nearest" to the unclassified record.
Industry forecasting - Answers -Forecasting is the use of historic data to determine the
direction of future trends. Businesses utilize forecasting to determine how to allocate
their budgets or plan for anticipated expenses for an upcoming period of time. This is
typically based on the projected demand for the goods and services they offer.
operating agreement - Answers -an agreement among limited liability company
members governing the LLC's business, and members' financial and managerial rights
and duties.
profit-loss statement - Answers -financial statement that summarizes the revenues,
costs and expenses incurred during a specific period of time
cost standard - Answers -the practice of substituting an expected cost for an actual cost
in the accounting records, and then periodically recording variances showing the
difference between the expected and actual costs. Used to save time
balanced scorecard - Answers -a strategic planning and management system that is
used extensively in business and industry, government, and nonprofit organizations
worldwide to align business activities to the vision and strategy of the organization,
improve internal and external communications, and monitor organization performance
against strategic goals.
query - Answers -a question, especially one addressed to an official or organization,
especially in order to express one's doubts about it or to check its validity or accuracy.
Includes select, data-definition, crosstab, pass-through.
Select query - Answers -One of the easiest to use and can be used to select and
display data from either one table or a series of them depending on what is needed.
