CFI Exam Study Correct Questions
And Answers
.What is a reason for corporations to use debt in capital financing?Correct Answers To
lower the cost of capital
What is the function of Trace Precedents?Correct Answers Trace cells that provide data
to the formula in the selected cell
In valuation which of the following is an advantage of comparable company analysis?
Correct Answers There are a large number of potential companies to compare to
Cells are __ by default, so before protecting a worksheet you must __Correct Answers
unlocked; lock the formula cells*gross profit mas
Which ratio would you use to determine how much profit a company makes after paying
off its cost of goods sold?Correct Answers gross profit margin ratio
Which of the following is not a best practice of designing your powerpoint presentation?
Correct Answers use different fonts and colors throughout the presentation
Which of the following items are not considered when calculating the income from
operations?Correct Answers Interest
which of the following is the correct ordering of the capital stack (from most secure to
least secure)?Correct Answers Term loan - high yield binds - common shares
When r=-0.99, the relationship between two sets of variables isCorrect Answers strong
negative
in powerpoint, which tab of the ribbon would you use to insert a fade on a textbox during
the presentation?Correct Answers Animations
What could be the yield to maturity for a 3 year bond with a 8% annual coupon if the
bond is trading at discount?Correct Answers 9%
what is the net present value of the project based on the information below? 20,000,
5,000, 8,000, 12,000, 8%Correct Answers 1,014
Calculate the debt to tangible net worth ratio based on the information below: 5,000,
3,000, 1,700, 500Correct Answers 0.68 (interest bearing liabilities/Total assets - Equity
+ IA)
, Which of the following does not describe a strategic buyer in M&A transactionsCorrect
Answers they use leverage for maximum equity returns
In excel, how do you insert a chart in a selected cell like the image below?Correct
Answers insert - sparklines - column
A company has annual sales of 32000 and accounts receivables of 2200. The gross
profit margin is 31.3%. The receivable days estimated from the data above isCorrect
Answers 25.1
A firm generated annual revenue of 75000 and has accounts payable of 3260. The
gross profit margin is 23.3%. The payable days estimated from the data above is
closest toCorrect Answers 21 (use COGS instead of rev)
In excel the yearfrac functions calculatesCorrect Answers the fraction of the year
represented by the number of whole days between two dates (start date and end date)
Calculate the companys breakeven point revenue based on the information
belowCorrect Answers 3077 (fixed costs / Contribution margin)
you would use a scenario analysis whenCorrect Answers comparing different business
cases about the future with multiple variables changed
what formula below is commonly used to forecast accounts payableCorrect Answers
Accounts payable = cost of sales x payable days /365)
Based on the information provided, calculate the revenue variance percentage and
determine whether it is favorable or unfavorable.Correct Answers -6.4% (actual -
budgeted / budgeted)
Forecast 2019 cost of goods sold based on the previous year's number and the
assumptionsCorrect Answers 13,356 (normal forecasting)
How to add the months from the raw data as labels in the following bar chart?Correct
Answers right click the chart - select data - select D45:O45 as axis label range
The net profit margin ratio can mathematically be broken down asCorrect Answers Tax
impact x Capital Structure impact x EBIT / Sales
If the total assets to equity ratio of a company is increasing, it is most likely that:Correct
Answers The company is decreasing the use of debt and getting lower financial
leverage
Calculate the end of the year cash balance based on the information below (1600,
1200, 450, 100, 60, 300, 110, 500)Correct Answers 2180 (beginning cash + Net income
And Answers
.What is a reason for corporations to use debt in capital financing?Correct Answers To
lower the cost of capital
What is the function of Trace Precedents?Correct Answers Trace cells that provide data
to the formula in the selected cell
In valuation which of the following is an advantage of comparable company analysis?
Correct Answers There are a large number of potential companies to compare to
Cells are __ by default, so before protecting a worksheet you must __Correct Answers
unlocked; lock the formula cells*gross profit mas
Which ratio would you use to determine how much profit a company makes after paying
off its cost of goods sold?Correct Answers gross profit margin ratio
Which of the following is not a best practice of designing your powerpoint presentation?
Correct Answers use different fonts and colors throughout the presentation
Which of the following items are not considered when calculating the income from
operations?Correct Answers Interest
which of the following is the correct ordering of the capital stack (from most secure to
least secure)?Correct Answers Term loan - high yield binds - common shares
When r=-0.99, the relationship between two sets of variables isCorrect Answers strong
negative
in powerpoint, which tab of the ribbon would you use to insert a fade on a textbox during
the presentation?Correct Answers Animations
What could be the yield to maturity for a 3 year bond with a 8% annual coupon if the
bond is trading at discount?Correct Answers 9%
what is the net present value of the project based on the information below? 20,000,
5,000, 8,000, 12,000, 8%Correct Answers 1,014
Calculate the debt to tangible net worth ratio based on the information below: 5,000,
3,000, 1,700, 500Correct Answers 0.68 (interest bearing liabilities/Total assets - Equity
+ IA)
, Which of the following does not describe a strategic buyer in M&A transactionsCorrect
Answers they use leverage for maximum equity returns
In excel, how do you insert a chart in a selected cell like the image below?Correct
Answers insert - sparklines - column
A company has annual sales of 32000 and accounts receivables of 2200. The gross
profit margin is 31.3%. The receivable days estimated from the data above isCorrect
Answers 25.1
A firm generated annual revenue of 75000 and has accounts payable of 3260. The
gross profit margin is 23.3%. The payable days estimated from the data above is
closest toCorrect Answers 21 (use COGS instead of rev)
In excel the yearfrac functions calculatesCorrect Answers the fraction of the year
represented by the number of whole days between two dates (start date and end date)
Calculate the companys breakeven point revenue based on the information
belowCorrect Answers 3077 (fixed costs / Contribution margin)
you would use a scenario analysis whenCorrect Answers comparing different business
cases about the future with multiple variables changed
what formula below is commonly used to forecast accounts payableCorrect Answers
Accounts payable = cost of sales x payable days /365)
Based on the information provided, calculate the revenue variance percentage and
determine whether it is favorable or unfavorable.Correct Answers -6.4% (actual -
budgeted / budgeted)
Forecast 2019 cost of goods sold based on the previous year's number and the
assumptionsCorrect Answers 13,356 (normal forecasting)
How to add the months from the raw data as labels in the following bar chart?Correct
Answers right click the chart - select data - select D45:O45 as axis label range
The net profit margin ratio can mathematically be broken down asCorrect Answers Tax
impact x Capital Structure impact x EBIT / Sales
If the total assets to equity ratio of a company is increasing, it is most likely that:Correct
Answers The company is decreasing the use of debt and getting lower financial
leverage
Calculate the end of the year cash balance based on the information below (1600,
1200, 450, 100, 60, 300, 110, 500)Correct Answers 2180 (beginning cash + Net income
