Ivy Software - Corporate Finance
Comprehensive Resource To Help You Ace 2026-2027
Includes Frequently Tested Questions With ELABORATED
100% Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!!
Current Update!!
1. Company Co. has 1,000 employees and it decides to grant each of the
employees 200 share options as part of its new rewards plan. The options
are exercisable over 5 years and subject only to the condition that the
company's stock price must be at least 30% higher than its original issue
price. Company Co.'s share-based payments are subject to: - ANSWER
Non-vesting condition
2. Company A has 800 employees, and it decides to grant each of the
employees 50 share options as part of its new rewards plan. The options are
exercisable over 5 years and subject to a 3-year service condition. The fair
value of each option at the grant date is $16. The company estimates that
80% of its employees will meet the service condition required for receiving
the options. Calculate the total share-based payment expense for Company
A assuming that 80% of the employees actually meet the service condition.
- ANSWER $512,000
3. Which of the following is not a required criterion for a transaction to be
considered a business combination? - ANSWER Presence of outputs
,4. Which of the following statements regarding the accounting for business
combinations is false? - ANSWER Goodwill is the difference between the
consideration transferred by the acquirer to the acquiree and the fair value
of identifiable assets acquired.
5. Debt issuance costs are: - ANSWER Amortized over the term of the
related debt liability
6. Which of the following is NOT a best practice for financial model inputs? -
ANSWER Protect inputs by locking input cells
7. Complex financial models are all of the following EXCEPT: - ANSWER
They are easy to follow and audit
8. Forecast the 2019 Cost of goods sold on the previous year's number and the
assumptions - ANSWER 32,400
9. Forecast the accounts receivable for Company XYZ using the following
annual information.
Receivable days assumption = 55 days
Payable days assumption = 69 days
Forecasted revenue = $263,500
Forecasted cost of goods sold = $114,780 - ANSWER 39,705
,10.What formula below can be used to forecast inventory? - ANSWER
(Inventory days / 365) x Cost of sales
11.Which of the following items can be found in a published cash flow
statement under "operating activities"? Select ALL correct answers. -
ANSWER Depreciation Changes in operating assets and liabilities
12.What is the total cash from operating activities based on the information
below?
Net income: 500
Depreciation: 80
Increase in receivables: 100
Increase in inventory: 50
Increase in payables: 60 - ANSWER 490
13.Calculate the end of the year cash balance based on the information below:
Beginning of the year cash balance: 2,000
Net income: 300
Depreciation: 140
Increase in accounts payable: 60
Acquisitions of PP&E: 580
Dividends paid in the current year: 130
Increase in long-term debt: 200 - ANSWER 1,990
, 14.Which Excel function or tool will you use to display the cells that are
referred to by a formula in the selected cell? - ANSWER Trace
Precedents
15.What is the forecasted value of property, plan and equipment (PP&E) based
on the following information:
Capital asset turnover ratio: 2.5
Forecasted revenues: $120
Forecasted costs of goods sold: $80 - ANSWER 48
16.What is the impact on cash flow from operations in the current year based
on the change in operating assets and liabilities listed below? - ANSWER
-200
17.What's the forecasted capital expenditure based on the information below?
Net PP&E beginning of period: 15,000
Net PP&E end of period: 17,500
Depreciation expenses: 2,400 - ANSWER 4,900
18.What's the retained earnings end of period based on the information
below?
Retained earnings beginning of period: 7,500
Net income: 2,300
Dividends paid: 1,700 - ANSWER 8,100
Comprehensive Resource To Help You Ace 2026-2027
Includes Frequently Tested Questions With ELABORATED
100% Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!!
Current Update!!
1. Company Co. has 1,000 employees and it decides to grant each of the
employees 200 share options as part of its new rewards plan. The options
are exercisable over 5 years and subject only to the condition that the
company's stock price must be at least 30% higher than its original issue
price. Company Co.'s share-based payments are subject to: - ANSWER
Non-vesting condition
2. Company A has 800 employees, and it decides to grant each of the
employees 50 share options as part of its new rewards plan. The options are
exercisable over 5 years and subject to a 3-year service condition. The fair
value of each option at the grant date is $16. The company estimates that
80% of its employees will meet the service condition required for receiving
the options. Calculate the total share-based payment expense for Company
A assuming that 80% of the employees actually meet the service condition.
- ANSWER $512,000
3. Which of the following is not a required criterion for a transaction to be
considered a business combination? - ANSWER Presence of outputs
,4. Which of the following statements regarding the accounting for business
combinations is false? - ANSWER Goodwill is the difference between the
consideration transferred by the acquirer to the acquiree and the fair value
of identifiable assets acquired.
5. Debt issuance costs are: - ANSWER Amortized over the term of the
related debt liability
6. Which of the following is NOT a best practice for financial model inputs? -
ANSWER Protect inputs by locking input cells
7. Complex financial models are all of the following EXCEPT: - ANSWER
They are easy to follow and audit
8. Forecast the 2019 Cost of goods sold on the previous year's number and the
assumptions - ANSWER 32,400
9. Forecast the accounts receivable for Company XYZ using the following
annual information.
Receivable days assumption = 55 days
Payable days assumption = 69 days
Forecasted revenue = $263,500
Forecasted cost of goods sold = $114,780 - ANSWER 39,705
,10.What formula below can be used to forecast inventory? - ANSWER
(Inventory days / 365) x Cost of sales
11.Which of the following items can be found in a published cash flow
statement under "operating activities"? Select ALL correct answers. -
ANSWER Depreciation Changes in operating assets and liabilities
12.What is the total cash from operating activities based on the information
below?
Net income: 500
Depreciation: 80
Increase in receivables: 100
Increase in inventory: 50
Increase in payables: 60 - ANSWER 490
13.Calculate the end of the year cash balance based on the information below:
Beginning of the year cash balance: 2,000
Net income: 300
Depreciation: 140
Increase in accounts payable: 60
Acquisitions of PP&E: 580
Dividends paid in the current year: 130
Increase in long-term debt: 200 - ANSWER 1,990
, 14.Which Excel function or tool will you use to display the cells that are
referred to by a formula in the selected cell? - ANSWER Trace
Precedents
15.What is the forecasted value of property, plan and equipment (PP&E) based
on the following information:
Capital asset turnover ratio: 2.5
Forecasted revenues: $120
Forecasted costs of goods sold: $80 - ANSWER 48
16.What is the impact on cash flow from operations in the current year based
on the change in operating assets and liabilities listed below? - ANSWER
-200
17.What's the forecasted capital expenditure based on the information below?
Net PP&E beginning of period: 15,000
Net PP&E end of period: 17,500
Depreciation expenses: 2,400 - ANSWER 4,900
18.What's the retained earnings end of period based on the information
below?
Retained earnings beginning of period: 7,500
Net income: 2,300
Dividends paid: 1,700 - ANSWER 8,100
