Cfi Exam Study With Questions And Answers #11
What is a reason for corporations to use debt in capital financing? - correct answer To
lower the cost of capital
What is the function of Trace Precedents? - correct answer Trace cells that provide data
to the formula in the selected cell
In valuation which of the following is an advantage of comparable company analysis? -
correct answer There are a large number of potential companies to compare to
Cells are __ by default, so before protecting a worksheet you must __ - correct answer
unlocked; lock the formula cells*gross profit mas
Which ratio would you use to determine how much profit a company makes after paying
off its cost of goods sold? - correct answer gross profit margin ratio
Which of the following is not a best practice of designing your powerpoint presentation?
- correct answer use different fonts and colors throughout the presentation
Which of the following items are not considered when calculating the income from
operations? - correct answer Interest
Which of the following is the correct ordering of the capital stack (from most secure to
least secure)? - correct answer Term loan - high yield binds - common shares
When r=-0.99, the relationship between two sets of variables is - correct answer strong
negative
In powerpoint, which tab of the ribbon would you use to insert a fade on a textbox during
the presentation? - correct answer Animations
What could be the yield to maturity for a 3 year bond with a 8% annual coupon if the
bond is trading at discount? - correct answer 9%
What is the net present value of the project based on the information below? 20,000,
5,000, 8,000, 12,000, 8% - correct answer 1,014
Calculate the debt to tangible net worth ratio based on the information below: 5,000,
3,000, 1,700, 500 - correct answer 0.68 (interest bearing liabilities/Total assets - Equity
+ IA)
Which of the following does not describe a strategic buyer in M&A transactions - correct
answer they use leverage for maximum equity returns
, In excel, how do you insert a chart in a selected cell like the image below? - correct
answer insert - sparklines - column
A company has annual sales of 32000 and accounts receivables of 2200. The gross
profit margin is 31.3%. The receivable days estimated from the data above is - correct
answer 25.1
A firm generated annual revenue of 75000 and has accounts payable of 3260. The
gross profit margin is 23.3%. The payable days estimated from the data above is
closest to - correct answer 21 (use COGS instead of rev)
In excel the yearfrac functions calculates - correct answer the fraction of the year
represented by the number of whole days between two dates (start date and end date)
Calculate the companys breakeven point revenue based on the information below -
correct answer 3077 (fixed costs / Contribution margin)
You would use a scenario analysis when - correct answer comparing different business
cases about the future with multiple variables changed
What formula below is commonly used to forecast accounts payable - correct answer
Accounts payable = cost of sales x payable days /365)
Based on the information provided, calculate the revenue variance percentage and
determine whether it is favorable or unfavorable. - correct answer -6.4% (actual -
budgeted / budgeted)
Forecast 2019 cost of goods sold based on the previous year's number and the
assumptions - correct answer 13,356 (normal forecasting)
How to add the months from the raw data as labels in the following bar chart? - correct
answer right click the chart - select data - select D45:O45 as axis label range
The net profit margin ratio can mathematically be broken down as - correct answer Tax
impact x Capital Structure impact x EBIT / Sales
If the total assets to equity ratio of a company is increasing, it is most likely that: -
correct answer The company is decreasing the use of debt and getting lower financial
leverage
Calculate the end of the year cash balance based on the information below (1600,
1200, 450, 100, 60, 300, 110, 500) - correct answer 2180 (beginning cash + Net income
+ depreciation -negative changes in operating assets and liabilities - acquired PP&E -
Dividends + increase in long term debt) (would add increase in accounts payable to
cash)
What is a reason for corporations to use debt in capital financing? - correct answer To
lower the cost of capital
What is the function of Trace Precedents? - correct answer Trace cells that provide data
to the formula in the selected cell
In valuation which of the following is an advantage of comparable company analysis? -
correct answer There are a large number of potential companies to compare to
Cells are __ by default, so before protecting a worksheet you must __ - correct answer
unlocked; lock the formula cells*gross profit mas
Which ratio would you use to determine how much profit a company makes after paying
off its cost of goods sold? - correct answer gross profit margin ratio
Which of the following is not a best practice of designing your powerpoint presentation?
- correct answer use different fonts and colors throughout the presentation
Which of the following items are not considered when calculating the income from
operations? - correct answer Interest
Which of the following is the correct ordering of the capital stack (from most secure to
least secure)? - correct answer Term loan - high yield binds - common shares
When r=-0.99, the relationship between two sets of variables is - correct answer strong
negative
In powerpoint, which tab of the ribbon would you use to insert a fade on a textbox during
the presentation? - correct answer Animations
What could be the yield to maturity for a 3 year bond with a 8% annual coupon if the
bond is trading at discount? - correct answer 9%
What is the net present value of the project based on the information below? 20,000,
5,000, 8,000, 12,000, 8% - correct answer 1,014
Calculate the debt to tangible net worth ratio based on the information below: 5,000,
3,000, 1,700, 500 - correct answer 0.68 (interest bearing liabilities/Total assets - Equity
+ IA)
Which of the following does not describe a strategic buyer in M&A transactions - correct
answer they use leverage for maximum equity returns
, In excel, how do you insert a chart in a selected cell like the image below? - correct
answer insert - sparklines - column
A company has annual sales of 32000 and accounts receivables of 2200. The gross
profit margin is 31.3%. The receivable days estimated from the data above is - correct
answer 25.1
A firm generated annual revenue of 75000 and has accounts payable of 3260. The
gross profit margin is 23.3%. The payable days estimated from the data above is
closest to - correct answer 21 (use COGS instead of rev)
In excel the yearfrac functions calculates - correct answer the fraction of the year
represented by the number of whole days between two dates (start date and end date)
Calculate the companys breakeven point revenue based on the information below -
correct answer 3077 (fixed costs / Contribution margin)
You would use a scenario analysis when - correct answer comparing different business
cases about the future with multiple variables changed
What formula below is commonly used to forecast accounts payable - correct answer
Accounts payable = cost of sales x payable days /365)
Based on the information provided, calculate the revenue variance percentage and
determine whether it is favorable or unfavorable. - correct answer -6.4% (actual -
budgeted / budgeted)
Forecast 2019 cost of goods sold based on the previous year's number and the
assumptions - correct answer 13,356 (normal forecasting)
How to add the months from the raw data as labels in the following bar chart? - correct
answer right click the chart - select data - select D45:O45 as axis label range
The net profit margin ratio can mathematically be broken down as - correct answer Tax
impact x Capital Structure impact x EBIT / Sales
If the total assets to equity ratio of a company is increasing, it is most likely that: -
correct answer The company is decreasing the use of debt and getting lower financial
leverage
Calculate the end of the year cash balance based on the information below (1600,
1200, 450, 100, 60, 300, 110, 500) - correct answer 2180 (beginning cash + Net income
+ depreciation -negative changes in operating assets and liabilities - acquired PP&E -
Dividends + increase in long term debt) (would add increase in accounts payable to
cash)
