This quiz works best with JavaScript enabled. Home > Finance > Financial Analysis > Financial Modeling > Financial Modeling – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Modeling Quiz 5 (24 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Who can benefit from Financial Modeling and Forecasting? A) Asset Managers. B) Investors. C) Accountants. D) All of the Above. Show Answer Correct Answer: D) All of the Above. 2. If Jonathan wants to save 20% of his income, how much money does he need save per month if he make $ 1, 600 per month. A) $ 320. B) $ 160. C) $ 400. D) $ 200. Show Answer Correct Answer: A) $ 320. 3. Which cash flow is accessible for a firm's investors? A) Extrinsic stock. B) Free cash flow. C) Investing cash. D) Intrinsic stock. Show Answer Correct Answer: B) Free cash flow. 4. How would you calculate dividend yield? A) Total Dividends / Share Price. B) Dividend Per Share / Net Income. C) Dividend Per Share / Share Price. D) Share Price / Dividends. E) Share Price / Earnings. Show Answer Correct Answer: C) Dividend Per Share / Share Price. 5. What is the most common calculation for corporate tax rate? A) Corporate Taxes / Net Earnings. B) Corporate Taxes / Earnings Before Taxes. C) Corporate Taxes / Operating Income. D) Corporate Taxes x Revenue. Show Answer Correct Answer: B) Corporate Taxes / Earnings Before Taxes. 6. If the liability and equity are greater than the assets (L + E > A) after forecasting the balance sheet, the excess cash available can be used to:I. Retire debt II. Repurchase shares III. Build extra cash reserves IV. Distribute excess as dividends A) I and II. B) I, II and III. C) II, III and IV. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. Excel Data Tables Are Arrays. What does it mean? A) This means that Excel data tables are static in nature. B) This means that Excel data tables have multiple formulas linked together. C) This means that Excel data tables are grouped together. D) This means that Excel data tables are dynamically linked to your initial example. Show Answer Correct Answer: D) This means that Excel data tables are dynamically linked to your initial example. 8. A ..... is an estimate of a business's financial outlook for the few years. A) Financial plan. B) Budget. C) Financial forecast. D) Income statement. Show Answer Correct Answer: C) Financial forecast. 9. 6) Workbooks that contain macros must be saved in the following format: A) Excel Macro-Enabled Workbook (.xlsm). B) Excel Workbook (.xlsx). C) Microsoft Office Macro-Enabled File (.mef). D) Excel Template (.xltx). Show Answer Correct Answer: A) Excel Macro-Enabled Workbook (.xlsm). 10. Limitation of analysis of financial statements is A) Affected by window dressing. B) Difficulty in forecasting. C) Do not reflect changes in price level. D) All of the Above. Show Answer Correct Answer: D) All of the Above. 11. Expenses that stay the same every month are ..... expenses. Rent would be an example. A) Variable. B) Discretionary. C) Intermittent. D) Fixed. Show Answer Correct Answer: D) Fixed. 12. The Sources and Uses of Funds statement reflects changes in cash A) Falso. B) TRUE. Show Answer Correct Answer: A) Falso. 13. Which of the following is one step in financial planning for a budget? A) Use percentages to see how much of the total income should be set aside for each expense. B) Create a spending chart. C) Create a table for cash gifts and gift cards your received. D) None of above. Show Answer Correct Answer: A) Use percentages to see how much of the total income should be set aside for each expense. 14. Turning inventories faster improves liquidity A) TRUE. B) Falso. Show Answer Correct Answer: B) Falso. 15. Jackie is ready to reconcile her bank statement with her check register. What should she do? A) Subtract deposits made since the statement. B) Add outstanding checks made since the statement. C) Add outstanding deposits and subtract outstanding checks written since statement. D) She does not need to reconcile her bank statements. Show Answer Correct Answer: C) Add outstanding deposits and subtract outstanding checks written since statement. 16. Financial management aims at A) Ensuring availability of enough funds. B) Reducing the cost of funds procured. C) Effective deployment of funds. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. Which of the following is an example of the type of financial data used to produce financial models and forecasts? A) Commodity prices. B) Budgeting plans. C) Business taxation rates. D) Interest rates. Show Answer Correct Answer: D) Interest rates. 18. Which of the following statement regarding NPV is true? A) An investment should be accepted if, and only if, the NPV equals the initial investment. B) An investment should be accepted if, and only if, the NPV equals zero. C) An investment should be accepted if the NPV is positive and rejected if it is negative. D) An investment with greater cash inflows than cash outflows, regardless of when the cash flows occur, will always have a positive NPV and therefore should always be accepted. Show Answer Correct Answer: C) An investment should be accepted if the NPV is positive and rejected if it is negative. 19. The term liquidity is the degree in which a business can turn its assets into cash A) True. B) False. Show Answer Correct Answer: A) True. 20. A worksheet range is a A) A command used for data modeling. B) A range of values such as from 23 to 234. C) A group of cells. D) A group of worksheets. Show Answer Correct Answer: C) A group of cells. 21. Which of the following shows an organization's financial position at a point in time? A) Balance Sheet. B) Cash flow statement. C) Earnings per share. D) Income Statement. E) Free cash flow. Show Answer Correct Answer: A) Balance Sheet. 22. Which of the following is the best indicator of a successful financial model and forecast? A) Accurate predictions and data accuracy. B) High accuracy coupled with low volatility. C) Utility and practicality of the model. D) Realism in the forecasts. Show Answer Correct Answer: A) Accurate predictions and data accuracy. 23. What type of questions does Financial Modeling and Forecasting provide answers to? A) What will our profits be next year?. B) Should I invest now or wait?. C) What will the stock market do tomorrow?. D) All of the Above. Show Answer Correct Answer: D) All of the Above. 24. It's an advantage of budgets A) Your data, when estimated, will be subject to the judgment or experience of those who determined it. B) Coordinate and link the activities of the organization. C) Coordinate the different cost centers in order to ensure that the company runs in a comprehensive manner. D) They facilitate administrative control. Show Answer Correct Answer: C) Coordinate the different cost centers in order to ensure that the company runs in a comprehensive manner. ← PreviousRelated QuizzesFinancial Analysis QuizzesFinance QuizzesFinancial Modeling Quiz 1Financial Modeling Quiz 2Financial Modeling Quiz 3Financial Modeling Quiz 4 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books