1. Question: To calculate a best case scenario, a company would ____________ and ____________.

    A
    increase revenue streams, decrease operating expenses

    B
    increase operating expenses, increase revenues

    C
    decrease revenues, increase operating expenses

    D
    show no change to revenue, show change only to operating expenses

    Note: Not available
    1. Report
  2. Question: What purpose does a central assumptions input tab serve in an Excel-based forecast?

    A
    It adds a level of complexity.

    B
    It helps create an easy-to-use spreadsheet in which all inputs are located in one place.

    C
    There is no particular purpose for it; it is simply required by law.

    D
    There is no particular purpose for it; it is simply required by the SEC.

    Note: Not available
    1. Report
  3. Question: Naming assumption cells is helpful because ____________________.

    A
    it allows for easier creation and tracking of formulas built into the model

    B
    formulas will not work unless they are named

    C
    it prevents subsequent users from editing the cells

    D
    management cannot decipher any hidden references

    Note: Not available
    1. Report
  4. Question: Companies calculate their valuation for the purpose of _____________________.

    A
    determining their Net Income

    B
    seeing if they can get credit from the bank

    C
    determining their tax liability

    D
    using the outcome as a basis for working with investors and deciding how much equity an investment is worth

    Note: Not available
    1. Report
  5. Question: The basic formula for a Balance Sheet is __________________.

    A
    Cash = Liabilities

    B
    Assets = Liabilities + Equity

    C
    Net Income = Assets - Liabilities

    D
    Retained Earnings = Assets + Liabilities

    Note: Not available
    1. Report
  6. Question: Which of the following is the accepted format for a forecasted Cash Flow Statement?

    A
    Net Income, Operating Activities, Financing Activities, Investing Activities

    B
    Revenue, COGS, Operating Expenses

    C
    Taxes, COGS, Revenue, Operating Expenses

    D
    Assets, Liabilities, Equity

    Note: Not available
    1. Report
  7. Question: Which of the following would most likely NOT be included on summary financials?

    A
    Net Income

    B
    Total Assets

    C
    Accounts Payable

    D
    Sales

    Note: Not available
    1. Report
  8. Question: Retained Earnings reflect ____________________.

    A
    the cumulative Net Income for a company from inception until its last reporting year

    B
    Net Income for the current year

    C
    Change in Assets

    D
    Change in Liabilities

    Note: Not available
    1. Report
  9. Question: Which of the following would be a logical arrangement for showing revenue?

    A
    Summary totals

    B
    Detailed by revenue stream

    C
    Detailed by sales person

    D
    Summarized by sales person

    Note: Not available
    1. Report
  10. Question: In a variance/sensitivity analysis, a company will typically calculate _________________.

    A
    only a worst case scenario

    B
    only a best case scenario

    C
    both best case and worst case scenarios of altered revenues and expenses

    D
    None of the above; most companies won't do a variance/sensitivity analysis.

    Note: Not available
    1. Report
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