Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

DECA > Finance Cluster > Flashcards

Finance Cluster Flashcards

1
Q

Business Law

A

laws that govern businesses and transactions between businesses.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Reporting

A

used in finance to disclose an organization’s financial standing.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Sales Tax

A

Charged to customers as a percentage of the price of the item being purchased

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Compliance Officer

A

An employee of a business or other organization whose task is to ensure that regulations imposed by a government agency are being met as well as internal policies and procedures.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Financial Ratio

A

Financial ratios provide a comparison between financial statement items to determine the strength or weakness of a company. The most common ratios are: net sales to net worth and net income to net sales.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Transaction

A

An agreement or contract that occurs between two or more parties and establishes a legal obligation. This can also be defined as an exchange of goods or services between a buyer and a seller.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Time Value of Money (TVM)

A

The concept that a sum of money is worth more now than the same sum will be at a future date due to its earnings potential in the interim.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Invest

A

An activity where money is put at risk in the short term for the purpose of creating a profit in the long term. Most investment activities include conducting research and developing a long term plan for any assets that will be put at risk.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Inflation

A

Refers to rising prices and is an indicator of the stability of an economy.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Client

A

A customer of a professional service provider or the primary contractor.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Indirect Costs

A

Those costs which cannot be directly linked to good, service, or project.

rent, utilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Capital

A

The most common definition of “capital” is money invested in a business to generate income. Capital can also be defined as wealth in the form of an asset which can be an indication of strength of an individual, business, or country.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Expenditure

A

The payment of cash for goods and services to settle an obligation; usually seen as an invoice or a receipt.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Costing

A

A process to determine the cost of production or operation of a business by assigning expenses to various stages of production or operations of a firm.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Six Sigma

A

This strategy involves creating groups of people within the business or organization who have expert status in various methods, and then each project is carried out according to a set of steps in an effort to reach financial milestones. A six sigma process is defined as one in which only 3.4 out of a million products created are statistically expected to have defects.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Classification

A

A data-mining technique that uses a decision tree that requires a series of decisions.

(used to classify things for machine learning or data mining generally)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Cost of Goods Sold

A

This line on an income statement shows the cost of raw materials and labor to produce a finished product or service that is available to a consumer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Economies of Scale

A

An internal or external reduction in long term costs when production or operation increases in size.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Convergence

A

The joining of two or more unique factors or phenomena, such as technologies. For example, the development of a smartphone was the convergence of telecommunication and internet technologies.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Cost Allocation

A

Refers to the method in which indirect costs are assigned to a product.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Client Services

A

Any activity provided by a vendor on behalf of a client. Depending on the business this can include customer service, financial management, information technology, social media support, database management, etc. The services provided to a client are agreed upon by both parties and detailed in a contract unless otherwise specified.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Debtor

A

A person or business that owes money, goods or services to another. e.g. accounts receivable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Regression

A

A data-mining technique that takes a numerical dataset and develops a mathematical formula that fits the data.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Bank Statement

A

A document showing activity on your account over the previous month, including a beginning and ending balance and all inflows and outflows during that time.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Financial Markets

A

A market for the sale or purchase of stocks, bonds, bills of exchange, commodities, options, and foreign currency which work as an exchange for capital and credit. To elaborate, the investor gets capital, but the company gets credit.

In the United States, well-recognized markets include the New York Stock Exchange, the S&P 500, and the Chicago Mercantile Exchange (CME or Merc), which trades commodities and options.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Credit

A

A contractual agreement in which a borrower receives a sum of money or something of value and repays the lender at a later date, typically with interest

For example, the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Commodity

A

A raw material or primary agricultural product that can be bought and sold, such as copper or coffee.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Inventory (Management) System

A

The process by which you track your goods throughout your entire supply chain, from purchasing to production to end sales.

An inventory system allows a business to maintain the optimum number of each item. In doing so, a business can operate production of a good or service, sales or customer service at a lower cost.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Capital Expenditures

A

The amount spent to acquire or upgrade an asset that will increase the efficiency of the production or operations of a business for the long term.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Financial Position

A

The status of the assets, liabilities, and owner’s equity of an individual, business, or other organization as shown in its financial statements.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Estate Tax

A

A tax paid on wealth, collected after a person has died. (Paid before assets are distributed).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Solvency (Solvent)

A

Refers to the ability of an organization to meet its financial obligations (debt).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Price

A

The value, in terms of money, placed on a good or service.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Currency

A

Money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Transparency

A

Fully and accurately disclosing of financial information to the public.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Financial Institutions

A

Organizations that are public or private who act as a channel between savers and borrowers of funds.

There are two types: depository and non-depository. Depository ones allow customers to deposit money, while non-depository don’t. Depository organizations are usually banks or credit unions. Non-depository organizations are often recognized as insurance companies, finance companies or mutual funds.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Securities

A

A financial instrument that holds value and can be traded between parties.

Examples: bonds, notes, options, shares, debentures

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Financial Instrument

A

A document representing a legal document involving monetary value.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Debentures

A

unsecured bonds / type of debt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

Financial Information Management

A

Managing data such as credit card numbers, accounting balances, or other monetary facts about an individual, business, or other organization that are used when evaluating credit, loans, or other financial activities.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

Risk Transfer

A

A strategy in which an insurance risk is shifted to another party (the insurer) by means of an insurance policy.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

Accounting

A

A system that monitors an individual, business, or other organization’s financial standing.

This includes recording and verifying financial information to determine a profit or loss for a given time period as well as the value of assets, liabilities, and owner’s equity.

43
Q

Variance Analysis

A

Variance analysis is the study of deviations of actual behaviour versus forecasted or planned behaviour in budgeting or management accounting.

44
Q

Financial Resources

A

Funds available to a business or person for spending in the form of cash, credit, or other securities.

45
Q

Internal Audit

A

An examination of an organization’s financial statements that is conducted by an employee of the organization.

46
Q

Customer

A

An individual, business, or other organization that receives products or services for their own use.

47
Q

Just-in-Time (Inventory)

A

An inventory management method that coordinates the demand and supply for goods, delivering them just before they are needed.

48
Q

Periodic Inventory System

A

An inventory method in which items are counted only occasionally, by visual inspection – and can be completed manually, or through the use of technology, such as barcode scanners.

49
Q

Data

A

Information in an unorganized form (alphabet, numbers, or symbols) that have a relationship with current conditions, ideas or knowledge.

50
Q

Insurance Market

A

Composed of the companies involved in buying and selling of insurance.

51
Q

Managerial Accounting

A

Accounting that focuses on revenue and expenses of a business, reporting variances to management.

52
Q

Sunk Cost

A

A cost that a business has incurred, but cannot recover. They are not relevant to future decisions.

For example, the cost of machinery, or equipment.

53
Q

Compliance

A

Verification that a vendor meets the requirements of accepted practices, regulations, legislation, rules, standards and/or the terms of the contact.

54
Q

External Audit

A

An examination of an organization’s financial statements by an independent accountant, not affiliated with the organization.

55
Q

Differential Cost

A

The difference in cost between two or more business decisions.

56
Q

Corporate Governance

A

Refers to the rules and practices that direct and control an organization.

57
Q

Inventory Management

A

The process of buying and storing materials and products while controlling costs.

58
Q

Consolidation

A

Combining assets, equity, and liabilities, and operating accounts of a business and its subsidiaries into one financial statement

OR

Combining two or more businesses through the purchase, merger, or ownership transfer to create a new business.

59
Q

Risk Retention

A

A strategy in which an entity sets aside a sum as a protection against a probable loss, instead of transferring the risk by purchasing an insurance policy.

60
Q

Financial Analysis

A

Evaluating an organization’s financial statements to determine the profitability of:

the organization, a division within the organization, or a specific event or project

61
Q

Database

A

The systematic organization of information that allows easy updating and analysis of data.

62
Q

Social Security (FICA)

A

A tax paid by workers so that they may receive benefits upon retirement.

63
Q

Capital Market

A

A market for supply and demand of debt and equity capital. This is a highly decentralized system made up of three major parts: the stock market, the bond market, and the money market.

64
Q

Marginal Analysis

A

A decision making tool that compares the cost of an activity versus the benefits of the activity.

65
Q

Risk Management

A

The process of controlling an individual, business or other organizations opportunity for damage, loss or injury to ensure the safety of the community, environment and legal responsibilities.

66
Q

Board of Directors

A

A group of individuals elected by stakeholders of an organization to govern the organization.

67
Q

Perpetual Inventory System

A

An inventory system that continually keeps track of the number of items in an inventory, and can be done manually or by computer.

68
Q

Securities Information

A

Information provided regarding an investment instrument issued by a corporation, government, or other organization that demonstrates whether it is debt or equity.

69
Q

Information Management

A

The process of collecting and analysing data that can be used in the strategic decision making process for a business.

70
Q

Insurance

A

A contract between a business and the insurer that covers a specific business risk.

71
Q

Budgeting

A

The process of determining a time specific financial plan for an individual, business, or other organization to achieve a monetary goal.

72
Q

Gross Revenue

A

Amount of money that the purchasers of a company’s products or services actually pay for those items.

73
Q

Equity

A

Includes earnings that a company has retained and the amount of funds invested in that company by its owners.

74
Q

Customer Relationship Management (CRM)

A

At a minimum, this is a database of customer contacts, purchase history, and technical support. Additional information can include profiles of potential clients, understanding and leveraging the needs of current customers, and enhanced customer service based on data analysis.

75
Q

Property Tax

A

The main source of money for many local governments. The tax is based on the value of property such as land and buildings.

76
Q

Exchange Rate

A

The value of one currency in terms of another, established on the foreign exchange market.

77
Q

Tax

A

Payment made to the government for services they provide.

78
Q

Financial Globalization

A

The worldwide development of economic, financial, trade, and communication integration. This pushes business executives to consider broad views in the global marketplace as countries and their economies become interconnected and interdependent.

79
Q

Data Mining / Data Surfing

A

Reviewing very large amounts of data for useful information. This activity often uses advanced statistical tools to determine trends, patterns, and relationships.

80
Q

Voluntary Compliance

A

The assumption that taxpayers will stay in compliance with tax laws and accurately report their income amounts and tax deductions fairly and honestly.

81
Q

Professional Relationship

A

Contacts made through business connections and interactions.

82
Q

Management Functions

A

planning, organizing, leading, and controlling.

83
Q

Savings

A

The portion of disposable income that is not spent on essential expenses in a household or business. A variety of saving vehicles are available to increase the value of savings including a bank savings account, stocks, bonds, etc.

84
Q

Accounting System

A

The (often) computerized system of collecting, processing, analyzing, and presenting accurate financial data to support management decisions.

85
Q

Finance

A

The process of managing money for an individual, business, or other organization.

86
Q

Professional Development

A

Process of improving capabilities of staff through access to education and training opportunities in the workplace, through outside organizations, or observing others perform the job.

87
Q

External Risk

A

The possibility of loss, damage, or injury outside a business or other organization.

88
Q

Activity Based Costing

A

A method used by businesses to accurately allocate overhead costs to specific products.

89
Q

Internal Risk

A

The possibility for loss, damage, or injury within a business or other organization.

90
Q

Income Tax

A

Calculated as a percentage of the taxable income workers earn while on the job.

91
Q

Securities and Exchange Commission (SEC)

A

Government agency created in 1934 that is responsible for enforcing security-related laws and setting standards on financial information about businesses that are traded on a stock exchange. The SEC has 5 commissioners who are appointed by the president and confirmed by the president who serve 5 year terms.

92
Q

Direct Cost

A

Those costs which can be directly tied to a good, service, or project.

93
Q

Financial Goal

A

Monetary objectives of an individual, business, or other organization that are decided by future needs of those entities.

94
Q

Financial Records

A

The financial documentation for an individual, business, or other organization. The most common records are a Cash Flow Statement, Income Statement, Balance Sheet, and Tax Returns.

95
Q

Compliance Programs

A

The systematic process of a business or other organization to ensure that regulations imposed by a government agency are being met.

96
Q

Sustainability Reporting

A

Reporting by an entity that outlines its economic, environmental, and social performance.

97
Q

Risk Avoidance

A

Used when a business anticipates risk and refrains from certain business activities in order to avoid the risk.

98
Q

Tax Law

A

The area of law that governs taxation. A tax is a fee charged by the government on a product, service, income, or activity.

The Internal Revenue Code is the body of law that codifies all federal tax laws. It has been revised many times after being written for the first time in 1939.

Each state that collects a tax has its own department of taxation as well as local municipalities.

99
Q

Customer Relations

A

The way a business interacts with its customers in order to obtain new customers while maintaining the current customer base.

100
Q

Money Market

A

A network of banks, discount houses, institutional vendors, and money dealers who borrow and lend amongst themselves for the short term (90 days). Any investment has risk, but a money market account is considered a safe place to invest due to its short term nature.

101
Q

Discount House

A

A firm specializing in the exchange of bills of exchange and promissory notes.

The difference between the two:
bills of exchange are issued by the creditor, while promissory notes are issued by the debtor.

102
Q

Financial Services

A

Financial services include accountancy, investment banking, investment management, and personal asset management.

103
Q

Financial Products

A

Financial products include insurance, credit cards, mortgage loans, and pension funds.

DECA (14 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions