FMI Exam Questions and Answers
Graded A+
Which of the following best describes a financial model?
• A. A historical financial analysis
• B. A forecast of a company's financial statements
• C. A detailed valuation analysis of a company - Correct answer-B. A forecast of a
company's financial statements
A good financial model should work in which of the following ways?
A. Electronically and on Paper / PDF
B. On Paper / PDF
C. Dynamically and Systematically - Correct answer-A. Electronically and on
Paper / PDF
Which of the following statements is NOT true about Key Drivers in a model?
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,A. A key driver is hard for management to control
B. A key driver is hard to forecast accurately
C. A well-built model will usually have at least 10 Key Drivers - Correct answer-C.
A well-built model will usually have at least 10 Key Drivers
What are the two major approaches to tab structure in a model?
A. Vertical Orientation and Horizontal Orientation
B. Multi Sheet Structure and Single Sheet Structure
C. Vertical Orientation and Hybrid Approaches - Correct answer-A. Vertical
Orientation and Horizontal Orientation
Which of the following best describes the optimal model flow for the front end of a
financial model?
A. It is dependent on the model builder's approach to tab structure
B. It follows this order: Cover Page, Executive Summary,
Assumptions, Scenarios
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, C. It follows this order: Cover Page. Scenarios, Assumptions, Executive Summary
- Correct answer-B. It follows this order: Cover Page, Executive Summary.
Assumptions, Scenarios
What is the purpose of a cover page in a financial model?
• A. It is an optional item in a model
• B. It should be standardized if you include one in a model
• C. It makes the model look professional and feel like a presentation - Correct
answer-• C. It makes the model look professional and feel like a presentation
What is the best way to center a title over the width of a section of a financial
model, such as the Assumptions page, in Microsoft Excel?
• A. Use Center Across Selection within the Format Cells menu
• B. Put the title in the Center Section of the Custom Header Menu
• C. Use the Merge and Center button in the Home Menu - Correct answer-• A. Use
Center Across Selection within the Format Cells menu
Which statement is true about the Assumptions page within a model?
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Graded A+
Which of the following best describes a financial model?
• A. A historical financial analysis
• B. A forecast of a company's financial statements
• C. A detailed valuation analysis of a company - Correct answer-B. A forecast of a
company's financial statements
A good financial model should work in which of the following ways?
A. Electronically and on Paper / PDF
B. On Paper / PDF
C. Dynamically and Systematically - Correct answer-A. Electronically and on
Paper / PDF
Which of the following statements is NOT true about Key Drivers in a model?
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,A. A key driver is hard for management to control
B. A key driver is hard to forecast accurately
C. A well-built model will usually have at least 10 Key Drivers - Correct answer-C.
A well-built model will usually have at least 10 Key Drivers
What are the two major approaches to tab structure in a model?
A. Vertical Orientation and Horizontal Orientation
B. Multi Sheet Structure and Single Sheet Structure
C. Vertical Orientation and Hybrid Approaches - Correct answer-A. Vertical
Orientation and Horizontal Orientation
Which of the following best describes the optimal model flow for the front end of a
financial model?
A. It is dependent on the model builder's approach to tab structure
B. It follows this order: Cover Page, Executive Summary,
Assumptions, Scenarios
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, C. It follows this order: Cover Page. Scenarios, Assumptions, Executive Summary
- Correct answer-B. It follows this order: Cover Page, Executive Summary.
Assumptions, Scenarios
What is the purpose of a cover page in a financial model?
• A. It is an optional item in a model
• B. It should be standardized if you include one in a model
• C. It makes the model look professional and feel like a presentation - Correct
answer-• C. It makes the model look professional and feel like a presentation
What is the best way to center a title over the width of a section of a financial
model, such as the Assumptions page, in Microsoft Excel?
• A. Use Center Across Selection within the Format Cells menu
• B. Put the title in the Center Section of the Custom Header Menu
• C. Use the Merge and Center button in the Home Menu - Correct answer-• A. Use
Center Across Selection within the Format Cells menu
Which statement is true about the Assumptions page within a model?
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