BUSI 690 HISTORICAL FINANCIAL
ANALYSIS ACTUAL EXAM PAPER 2026
QUESTIONS WITH ANSWERS GRADED A+
◍ Calculate capital investment return (e.g. net present value, ).
Answer:
◍ Analyze cash budget/forecast variances (FI:508) (SP).
Answer: -process used to compare actual cash flow to the budgeted or
forecasted cash flow.-helps to identify any discrepancies between the two
and can be used to identify areas of improvement or areas of risk-used to
identify any potential cash flow issues that may arise in the future and can
help to inform decisions about cash management-used to identify potential
opportunities to increase cash flow
◍ Validate credit history (FI:072) (CS).
Answer: -process of verifying the accuracy of a person's credit
report-checking the accuracy of the information reported by the credit
bureaus, such as payment history, credit limits, and account
balances-verifying that the person's identity matches the information on the
credit report-important to ensure that the person's credit score is accurate
and that they are not being unfairly penalized for mistakes or inaccuracies
on their credit report.
◍ Analyze the impact of accounts receivable collection on working capital
cycle (FI:637) (SP).
Answer: Accounts receivable: the amount of money owed to a business by
its customers for goods or services that have been provided-When customers
pay their accounts receivable, the business is able to use the money to pay
its own bills, such as inventory and payroll-helps to keep the working capital
cycle in balance, as the business is able to pay its own bills without having
, to borrow money or take out a loan-when customers pay their accounts
receivable, the business can reinvest the money back into the business,
which can help to increase profits and growth
◍ Calculate cash flows associated with an investment (e.g., , operating cash
inflows, ) (FI:492) (SP).
Answer:
◍ Calculate the time value of money (FI:238) (SP).
Answer: future value = FV = PV (1 + r)^npresent value = PV = FV / (1
+r)^n
◍ Monitor project portfolio (FI:753) (SP).
Answer: -involves tracking the progress of all projects within the
portfolio-monitoring the budget, timeline, and resources allocated to each
project-assessing the performance of each project and identifying any
potential risks or issues that may arise-ensure that all projects are completed
on time and within budget, while also ensuring that the portfolio is meeting
its overall objectives
◍ Calculate cash flows associated with an investment (operating cash
outflows, ) (FI:492) (SP).
Answer:
◍ Determine insurance needs (FI:571) (SP).
Answer: -based on income
◍ Protect against identity theft (FI:073) (CS).
Answer: -a serious crime that can have long-lasting financial and emotional
consequences. -protect against identity theft, it is important to take steps to
secure your personal information-shredding documents with sensitive
information, using strong passwords for online accounts, and monitoring
your credit report regularly-important to be aware of potential scams and to
never give out personal information over the phone or online unless you are
certain of the source.
◍ Calculate stock-related values (e.g., the value of a constant growth stock, the
, expected value of future dividends, the expected rate of return, etc.) (FI:367)
(SP).
Answer: -value of a constant growth stock can be calculated using the
Gordon Growth Model, which takes into account the current stock price, the
expected dividend growth rate, and the required rate of return-expected
value of future dividends can be calculated by multiplying the current
dividend per share by the expected growth rate-expected rate of return can
be calculated by taking the expected dividend yield plus the expected capital
gains yield-Other stock-related values to calculate include the price-earnings
ratio, earnings per share, and book value per share-Accurate calculations
important for making informed investment decisions and managing
investment portfolios
◍ Make responsible financial decisions (FI:783) (CS).
Answer: -taking the time to understand your financial situation and making
decisions that will help you reach your financial goals.-budgeting, saving,
investing, and managing debt.-understanding the risks associated with
different financial decisions and making sure that you are comfortable with
the level of risk you are taking.-understanding the different types of
financial products available and choosing the ones that best fit your
needs-staying informed about changes in the financial markets-staying up to
date with the latest financial news.
◍ Prepare cash flow budgets/forecasts (FI:507) (SP).
Answer: -process of creating a financial plan for a company or organization
that estimates the expected cash inflows and outflows over a specific period
of time-helps to identify potential cash flow problems and allows for
proactive management of cash resources-should include all sources of cash,
such as operating activities, investments, financing activities, and other
sources-include expected cash receipts and payments for each period, as
well as any expected changes in cash balances-should be reviewed and
updated regularly to ensure accuracy and to identify any potential cash flow
issues
ANALYSIS ACTUAL EXAM PAPER 2026
QUESTIONS WITH ANSWERS GRADED A+
◍ Calculate capital investment return (e.g. net present value, ).
Answer:
◍ Analyze cash budget/forecast variances (FI:508) (SP).
Answer: -process used to compare actual cash flow to the budgeted or
forecasted cash flow.-helps to identify any discrepancies between the two
and can be used to identify areas of improvement or areas of risk-used to
identify any potential cash flow issues that may arise in the future and can
help to inform decisions about cash management-used to identify potential
opportunities to increase cash flow
◍ Validate credit history (FI:072) (CS).
Answer: -process of verifying the accuracy of a person's credit
report-checking the accuracy of the information reported by the credit
bureaus, such as payment history, credit limits, and account
balances-verifying that the person's identity matches the information on the
credit report-important to ensure that the person's credit score is accurate
and that they are not being unfairly penalized for mistakes or inaccuracies
on their credit report.
◍ Analyze the impact of accounts receivable collection on working capital
cycle (FI:637) (SP).
Answer: Accounts receivable: the amount of money owed to a business by
its customers for goods or services that have been provided-When customers
pay their accounts receivable, the business is able to use the money to pay
its own bills, such as inventory and payroll-helps to keep the working capital
cycle in balance, as the business is able to pay its own bills without having
, to borrow money or take out a loan-when customers pay their accounts
receivable, the business can reinvest the money back into the business,
which can help to increase profits and growth
◍ Calculate cash flows associated with an investment (e.g., , operating cash
inflows, ) (FI:492) (SP).
Answer:
◍ Calculate the time value of money (FI:238) (SP).
Answer: future value = FV = PV (1 + r)^npresent value = PV = FV / (1
+r)^n
◍ Monitor project portfolio (FI:753) (SP).
Answer: -involves tracking the progress of all projects within the
portfolio-monitoring the budget, timeline, and resources allocated to each
project-assessing the performance of each project and identifying any
potential risks or issues that may arise-ensure that all projects are completed
on time and within budget, while also ensuring that the portfolio is meeting
its overall objectives
◍ Calculate cash flows associated with an investment (operating cash
outflows, ) (FI:492) (SP).
Answer:
◍ Determine insurance needs (FI:571) (SP).
Answer: -based on income
◍ Protect against identity theft (FI:073) (CS).
Answer: -a serious crime that can have long-lasting financial and emotional
consequences. -protect against identity theft, it is important to take steps to
secure your personal information-shredding documents with sensitive
information, using strong passwords for online accounts, and monitoring
your credit report regularly-important to be aware of potential scams and to
never give out personal information over the phone or online unless you are
certain of the source.
◍ Calculate stock-related values (e.g., the value of a constant growth stock, the
, expected value of future dividends, the expected rate of return, etc.) (FI:367)
(SP).
Answer: -value of a constant growth stock can be calculated using the
Gordon Growth Model, which takes into account the current stock price, the
expected dividend growth rate, and the required rate of return-expected
value of future dividends can be calculated by multiplying the current
dividend per share by the expected growth rate-expected rate of return can
be calculated by taking the expected dividend yield plus the expected capital
gains yield-Other stock-related values to calculate include the price-earnings
ratio, earnings per share, and book value per share-Accurate calculations
important for making informed investment decisions and managing
investment portfolios
◍ Make responsible financial decisions (FI:783) (CS).
Answer: -taking the time to understand your financial situation and making
decisions that will help you reach your financial goals.-budgeting, saving,
investing, and managing debt.-understanding the risks associated with
different financial decisions and making sure that you are comfortable with
the level of risk you are taking.-understanding the different types of
financial products available and choosing the ones that best fit your
needs-staying informed about changes in the financial markets-staying up to
date with the latest financial news.
◍ Prepare cash flow budgets/forecasts (FI:507) (SP).
Answer: -process of creating a financial plan for a company or organization
that estimates the expected cash inflows and outflows over a specific period
of time-helps to identify potential cash flow problems and allows for
proactive management of cash resources-should include all sources of cash,
such as operating activities, investments, financing activities, and other
sources-include expected cash receipts and payments for each period, as
well as any expected changes in cash balances-should be reviewed and
updated regularly to ensure accuracy and to identify any potential cash flow
issues
