This quiz works best with JavaScript enabled. Home > Financial Analysis > Financial Modeling > Financial Modeling – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Modeling Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Excel data tables are array functions. What does it mean? A) Multiple cells of excel are merged together to create one group. B) An array is a group of excel cells. C) An array function has multiple formula embedded inside one formula. D) An array function is a formula that can perform multiple calculations on one or more items in an array. Show Answer Correct Answer: D) An array function is a formula that can perform multiple calculations on one or more items in an array. 2. What type of analysis can be conducted using Financial Modeling and Forecasting? A) Risk analysis. B) Analysis portfolio. C) Data analysis. D) All of the Above. Show Answer Correct Answer: D) All of the Above. 3. Jackson spends in gas changes every month, based upon the price of gas, this is an example of which of the following: A) Fixed Expense. B) Variable Expense. C) Periodic Expense. D) None of above. Show Answer Correct Answer: B) Variable Expense. 4. How do you access Data Table command in Excel? A) Data|Analysis Toolpak|Data Table. B) Data|What-if Analysis|Data Table. C) Data|Data Analysis|Data Table. D) Data|Solver|Data Table. Show Answer Correct Answer: B) Data|What-if Analysis|Data Table. 5. Which of the following falls into investing activities? A) Change in working capital. B) Capital expenditures. C) Cost of goods sold. D) Depreciation. Show Answer Correct Answer: B) Capital expenditures. 6. If the net present value of project A is +$ 50, and of project B is +$ 80, then the NPV of the combined project is: A) $ 30. B) $ 50. C) $ 80. D) $ 130. Show Answer Correct Answer: D) $ 130. 7. Purpose of a budget is to: A) Identify cash in and out flows of a business. B) Determine the actual cash on hand for a previous period. C) Identify revenue earned for the current period. D) Determine expenses incurred for the current period. Show Answer Correct Answer: A) Identify cash in and out flows of a business. 8. What will be the return on assets DuPont equation, given profit margin= 4.5% and total assets turnover= 1.8%. A) 0.025. B) 0.081. C) 0.004. D) 4 times. Show Answer Correct Answer: B) 0.081. 9. What is the calculation for revenue growth> A) Current year's revenue/ last year's revenue. B) Current year's revenue / next year's revenue-1. C) Current year's revenue / next year's revenue. D) Current year's revenue / last year's revenue-1. Show Answer Correct Answer: D) Current year's revenue / last year's revenue-1. 10. The primary goal of financial management is A) To maximize the return. B) To minimize the risk. C) To maximize wealth of owners. D) To maximize profit. Show Answer Correct Answer: C) To maximize wealth of owners. 11. Market value of shares are decided by A) The respective companies. B) The investment market. C) The government. D) The shareholders. Show Answer Correct Answer: B) The investment market. 12. Which of the following is equal to real rate of return? A) Nominal Rate x Inflation Rate. B) Nominal Rate Inflation Rate. C) Nominal Rate-Inflation Rate. D) Nominal Rate + Inflation Rate. Show Answer Correct Answer: C) Nominal Rate-Inflation Rate. 13. 9) Where do you assign a Macro to a button on the Ribbon? A) In the Customize the Ribbon area of the Excel Options dialog box. B) In the Record Macro dialog box. C) In the Macros dialog box. D) Under the Insert tab on the Ribbon, select Insert Macro Icon. Show Answer Correct Answer: C) In the Macros dialog box. 14. Financial analysis becomes significant because it: A) Ignores price level changes. B) Measures the efficiency of business. C) Lacks qualitative analysis. D) Is effected by personal bias. Show Answer Correct Answer: B) Measures the efficiency of business. 15. Payback period rule accepts all projects for which the payback period is: A) Greater than the cut-off value. B) Less than the cut-off value. C) Positive. D) An integer. Show Answer Correct Answer: B) Less than the cut-off value. 16. Which of the following best describes the purpose of Financial Models & Forecasting in the financial services industry? A) To identify new investment opportunities. B) To predict stock prices. C) To build financial statements. D) To evaluate possible outcomes. Show Answer Correct Answer: D) To evaluate possible outcomes. 17. "Allows for the assumption that the firm will make large investments in capacity and will need new funding in large, infrequent financing rounds." This statement refers to the advantage of forecasting capital expenditures, working capital, and financing events directly. A) True. B) False. Show Answer Correct Answer: A) True. 18. When bad position of the business is tried to be depicted as good, it is known as A) Personal Bias. B) Price Level Changes. C) Window Dressing. D) All of the Above. Show Answer Correct Answer: C) Window Dressing. 19. How do calculate Days Receivable? A) Accounts Payable / Cost of Sales x 365. B) Accounts Payable / Annual Revenue x 365. C) Accounts Receivable / Cost of Sales x 365. D) Accounts Receivable / Annual Revenue x 365. E) Accounts Receivable x Annual Revenue / 365. Show Answer Correct Answer: D) Accounts Receivable / Annual Revenue x 365. 20. Under what condition would you NOT accept a project that has a positive net present value? A) If the project has a profitability index less than zero. B) If two or more projects are mutually inclusive. C) If the firm is limited in the capital it has available. D) If a project has more than one sign reversal. Show Answer Correct Answer: C) If the firm is limited in the capital it has available. ← PreviousNext →Related QuizzesFinancial Analysis QuizzesFinancial Modeling Quiz 1Financial Modeling Quiz 3Financial Modeling Quiz 4Financial Modeling Quiz 5Financial Modeling Quiz 6Financial Modeling Quiz 7Financial Modeling Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books