Question

True or False. When doing a cashflow analysis, cash outflows should be entered as positive numbers.

True or False

What is the formula to find the average of cells A1, B1, B2, B3, B4 and B5?

		=average(A1,B1:B5)
		=avg(A1,B1:B5)
		=average(A1:B1:B2:B3:B4:B5)
		=avg(A1, B1, B2, B3, B4, B5)

What is the beginning date in Excel that all serial numbers are based off of?

		1/1/2000
		1/1/1900
		12/31/1899
		1/1/1960

This formula in Excel determines if any conditions in a test are TRUE.

		IF
		AND
		OR
		None of the above

If I want to increment dates by three months, what formula would I use? Assume that date is a date reference in your spreadsheet.

		=edate(date,1)
		=edate(date,+3)
		=date+3
		=date(date,3)
		=edate(date,3)

The additional risk that results from using financial leverage is known as the:

		Interest Rate Risk
		Financial Risk
		Business Risk
		Credit Risk

Which of the following functions allows you to calculate one or more parameters of a regression equation?

		INTERCEPT
		SLOPE
		LINEST
		All of the above
		None of the above

What formula should I use if I want to find the minimum monthly payment on a loan?

		PAYMENT
		PMT
		NPER
		RATE

If you are stuck on a problem in Excel (other than this exam), what should you do?

		Give up
		Search the internet
		Use old spreadsheets as reference
		Ask a friend
		B, C and D

True or False. Compounding is the process of moving cashflows into a later time period.

True or False

Assume that the Earning Before Interest and Taxes is $30,000, the Earnings before Taxes is $25,000 and the Tax Rate is 40%. What is the Net Income?

		$13,000
		$18,000
		$15,000
		$25,000

What does compound rate of return (CAGR) mean?

		It is the straight average rate of return
		It is the rate of return required assuming profits were reinvested each year
		It is the geometric mean
		b and c

Which statement is true relating to Common-Size financial statements?

		Common-Size shows items in the Income Statement as a percentage relative to Sales.
		Common-Size shows items in the Balance Sheet as a percentage relative to Sales.
		Common-Size shows items in the Statement of Cash Flows as a percentage relative to the beginning cash balance.
		All of the above
		a and b
		a and c

True or False. The three different types of measure leverage are: Financial, Operating and Contribution.

True or False

This formula in Excel returns one value if a condition is true and another value if it's false.

		IF
		AND
		OR
		None of the above

If I want to round to the nearest 100,000, what is the formula I need? The number you want to round is 1,234,567.

		=roundup(1234567,-5)
		=round(1234567,-3)
		=mround(1234567,100)
		=round(1234567,-5)

True or False. When creating a Statement of Cash Flows, the Change in Accounts Receivable is calculated as Accounts Receivable in 2015 minus Accounts Receivable in 2016.

True or False

A circular error results when a formula refers to:

		a cell in another workbook that is closed.
		the same cell that contains the formula.
		another cell that refers back to the cell that contains the formula
		a and b
		b and c

If the discretionary financing needed (DFN) is negative, that represents a            of discretionary funding.

		surplus
		deficit
		neither
		both

All these are multiple-choice question.

Answer 1

Q1) False

Explanation: Cash outflow should be written with negative sign.

Q2) A) =average (A1,B1:B5)

Explanation: we don't use =avg as formula while calculating average in excel. In average formula we separate the number by comma instead of ' : ' .

Q3) B) 1/1/1900

Explanation: all serial number starts from year 1900 in excel.

Q4) A) Or

Explanation: Excel OR function returns TRUE if any of the conditions are TRUE. Otherwise, it returns FALSE. The OR function is a built-in function in Excel that is categorized as a Logical Function.

Q5) E) =edate(date,3)

Explanation: Edate function is used to add or subtract months to the date given. If we need to add , then put a positive number . And in case if we want to subtract, then put a negative number.

Q6) Credit risk

Q7) All of the above

Q8) PMT

Q9) B,C and D

Q10) True

Explanation: Compounding = P(1+r)^t

It is used to calculate the cash flow at later date.

Q11) 15,000

Explanation: Net income= EBT (1-tax)

= 25,000 (1-0.40)

= 25,00 × 0.60

= 15,000

Q12) B and C

Q13) Common-Size shows items in the Income Statement as a percentage relative to Sales.

Q14) False

Explanation: The three different leverages are financial, operating and combined. It is not contribution.

Q15) If

Q16) =round(1234567,-5)

Q17) False

Explanation: The formula should be 2016 account receivable minus 2015 account receivable

Q18) the same cell that contains the formula

Q19) Surplus