DECA Finance Exam questions and answers
2024\2025 A+ Grade
debtor-creditor relationship
- correct answer A debtor is someone who owes a financial obligation (a "debt") to another, known as
the creditor. Interest must be charged.
affinity fraud
- correct answer - 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
- correct answer 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)
- correct answer - 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
- correct answer 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
- correct answer 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
- correct answer the process of combining financial data from several departments or business entities
within an organization, usually for reporting purposes.
Data Mining
- correct answer - 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
- correct answer 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
- correct answer 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
- correct answer 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
- correct answer 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.
2024\2025 A+ Grade
debtor-creditor relationship
- correct answer A debtor is someone who owes a financial obligation (a "debt") to another, known as
the creditor. Interest must be charged.
affinity fraud
- correct answer - 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
- correct answer 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)
- correct answer - 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
- correct answer 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
- correct answer 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
- correct answer the process of combining financial data from several departments or business entities
within an organization, usually for reporting purposes.
Data Mining
- correct answer - 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
- correct answer 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
- correct answer 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
- correct answer 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
- correct answer 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.
