FMVA Practice Test || A+ Certified.
Using the financial statements attached, what is the company's return on equity in year 5? correct
answers 27.15%
Using the financial statements attached, what is the company's return on assets in year 2? correct
answers 25.09%
Using the financial statements attached, what is the company's operating profit (EBIT) margin in
year 1? correct answers 21.75%
Using the financial statements attached, what is the company's net profit margin in year 1?
correct answers 14.71%
Using the financial statements attached, what is the company's effective tax rate in year 2?
correct answers 28.06%
Using the financial statements attached, what is the company's total asset turnover ratio in year
3? correct answers 1.28x
Using the financial statements attached, what is the company's accounts receivable days ratio in
year 1? correct answers 4.0 days
Using the financial statements attached, what is the company's inventory days ratio in year 5?
correct answers 188.8 days
Using the financial statements attached, what is the company's cash days ratio in year 3? correct
answers 95.4 days
,Using the financial statements attached, what is the company's debt to equity ratio in year 1?
correct answers 0.00x
Using the financial statements attached, what is the company's total assets to equity ratio in year
2? correct answers 1.32x
Using the financial statements attached, what is the company's current ratio in year 3? correct
answers 2.41x
When analyzing the income statement, which line item do you typically use as the denominator
in the ratio? correct answers Sales
What is typically NOT included in a checklist used to identify appropriate peer group
companies? correct answers Same type of management team
What is the correct formula for calculating NOPAT? correct answers EBIT x (1 - Tax Rate)
When conducting financial analysis, what is the recommended best practice for minimum
number of years of financial statements? correct answers 5 years
What are the three ROE levers of the DuPont pyramid? correct answers Net Profit Margin x
Total Asset Turnover x Financial Leverage
Which of the following is NOT a characteristic of horizontal analysis? correct answers It is most
effective when comparing one period with each other.
Which current asset or liability is omitted from this ratio? correct answers Inventory
Which of the following retailers is most likely to have the lowest inventory days? correct
answers A grocery store / supermarket
, The proper structure of a 3-statement model should contain which of the following modules?
correct answers Inputs, Calculations, Outputs
Which of the following is a best practice for financial model inputs? correct answers Data should
only be entered once
What is the formula for the Capital Asset Turnover Ratio? correct answers Sales/Property, Plant
& Equipment
According to the course, a 3-statement financial model can be used for which of the following
purposes? Select ALL that apply. correct answers Strategic planning, Corporate transactions, and
Investment decisions
Complex financial models are all of the following EXCEPT: correct answers They are easy to
audit
Which of the following items are considered "operating activities" on the cash flow statement?
Select ALL correct answers. correct answers Changes in operating assets and liabilities, Net
income, and Depreciation
According to the course, which is the best method for calculating interest expense? correct
answers Interest Rate x Average Debt Balance
Forecast the Year 1 gross profit on the previous year's number and the assumptions. correct
answers 47,742
Calculate EBITDA and EBIT, respectively, given the information in the Excel file. correct
answers 3,631; 1,356
Using the financial statements attached, what is the company's return on equity in year 5? correct
answers 27.15%
Using the financial statements attached, what is the company's return on assets in year 2? correct
answers 25.09%
Using the financial statements attached, what is the company's operating profit (EBIT) margin in
year 1? correct answers 21.75%
Using the financial statements attached, what is the company's net profit margin in year 1?
correct answers 14.71%
Using the financial statements attached, what is the company's effective tax rate in year 2?
correct answers 28.06%
Using the financial statements attached, what is the company's total asset turnover ratio in year
3? correct answers 1.28x
Using the financial statements attached, what is the company's accounts receivable days ratio in
year 1? correct answers 4.0 days
Using the financial statements attached, what is the company's inventory days ratio in year 5?
correct answers 188.8 days
Using the financial statements attached, what is the company's cash days ratio in year 3? correct
answers 95.4 days
,Using the financial statements attached, what is the company's debt to equity ratio in year 1?
correct answers 0.00x
Using the financial statements attached, what is the company's total assets to equity ratio in year
2? correct answers 1.32x
Using the financial statements attached, what is the company's current ratio in year 3? correct
answers 2.41x
When analyzing the income statement, which line item do you typically use as the denominator
in the ratio? correct answers Sales
What is typically NOT included in a checklist used to identify appropriate peer group
companies? correct answers Same type of management team
What is the correct formula for calculating NOPAT? correct answers EBIT x (1 - Tax Rate)
When conducting financial analysis, what is the recommended best practice for minimum
number of years of financial statements? correct answers 5 years
What are the three ROE levers of the DuPont pyramid? correct answers Net Profit Margin x
Total Asset Turnover x Financial Leverage
Which of the following is NOT a characteristic of horizontal analysis? correct answers It is most
effective when comparing one period with each other.
Which current asset or liability is omitted from this ratio? correct answers Inventory
Which of the following retailers is most likely to have the lowest inventory days? correct
answers A grocery store / supermarket
, The proper structure of a 3-statement model should contain which of the following modules?
correct answers Inputs, Calculations, Outputs
Which of the following is a best practice for financial model inputs? correct answers Data should
only be entered once
What is the formula for the Capital Asset Turnover Ratio? correct answers Sales/Property, Plant
& Equipment
According to the course, a 3-statement financial model can be used for which of the following
purposes? Select ALL that apply. correct answers Strategic planning, Corporate transactions, and
Investment decisions
Complex financial models are all of the following EXCEPT: correct answers They are easy to
audit
Which of the following items are considered "operating activities" on the cash flow statement?
Select ALL correct answers. correct answers Changes in operating assets and liabilities, Net
income, and Depreciation
According to the course, which is the best method for calculating interest expense? correct
answers Interest Rate x Average Debt Balance
Forecast the Year 1 gross profit on the previous year's number and the assumptions. correct
answers 47,742
Calculate EBITDA and EBIT, respectively, given the information in the Excel file. correct
answers 3,631; 1,356
