WALL STREET PREP PREMIUM EXAM TRANSACTION COMPS MODELING
WALL STREET PREP EXAM QUESTIONS WITH CORRECT ANSWERS 2025/2026
What Lis Lgenerally Lnot Lconsidered Lto Lbe La Lpre-tax Lnon-recurring L(unusual Lor Linfrequent)
Litem? L- Lcorrect Lanswer-Extraordinary Lgains/losses
what Lis Lfalse Labout Ldepreciation Land Lamortization L- Lcorrect
Lanswer- LD&A Lmay Lbe Lclassified Lwithin Linterest Lexpense
Company LX's Lcurrent Lassets Lincreased Lby L$40 Lmillion Lfrom L2007-
2008 Lwhile Lthe Lcompanies Lcurrent Lliabilities Lincreased Lby L$25 Lmillion Lover Lthe Lsame Lperiod. Lthe
Lcash Limp Lact Lof Lthe Lchange Lin Lworking Lcapital Lwas L- Lcorrect Lanswer-a Ldecrease Lof L15 Lmillion
the Lfinal Lcomponent Lof Lan Learnings Lprojection Lmodel LisYcalculating Linterest Lexpense. Lthe
Lcalculation Lmay Lcreate La Lcircular Lreference Lbecause L- Lcorrect Lanswer-
interest Lexpense Laffects Lnet Lincome, Lwhich Laffects LFCF, Lwhich Laffects Lthe Lamount Lof Ldebt La Lcompany
Lpays Ldown, Lwhich, Lin Lturn Laffects Lthe Linterest Lexpense, Lhence Lthe Lcircular Lreference
a L10-q Lfinancial LfilingYhas Lall Lof Lthe Lfollowing Lcharacteristics Lexcept L-Ycorrect
Lanswer- Lissued Lfour Ltimes La Lyear.
Depreciation LExpense Lfound Lin Lthe LSG&A Lline Lof Lthe Lincome Lstatement Lfor La Lmanufacturing Lfirm
Lwould Lm Lost Llikely Lbe Lattributable Lto Lwhich Lof Lthe Lfollowing L- Lcorrect Lanswer-
computers Lused Lby Lthe Laccounting Ldepartment
If La Lcompany Lhas Lprojected Lrevenues Lof L$10 Lbillion, La Lgross Lprofit Lmargin Lof L65%, Land Lprojected
LSG&A Lexp Lenses Lof L$2billion, Lwhat Lis Lthe Lcompany's Loperating L(EBIT) Lmargin? L- Lcorrect Lanswer-
45%
A Lcompany Lhas Lthe Lfollowing Linformation, L1. L2014 Lrevenues Lof L$5 Lbillion,2013 LAccounts
Lreceivable Lof L$40 L0 Lmillion, L2014 Laccounts Lreceivable Lof L$600 Lmillion, Lwhat Lare Lthe Ldays Lsales
Loutstanding L- Lcorrect Lanswer- L36.5
, A Lcompany Lhas Lthe Lfollowing Linformation:
• 2014 LRevenues Lof L$8 Lbillion
• 2014 LCOGS Lof L$5 Lbillion
• 2013 LAccounts Lreceivable Lof L$400 Lmillion
• 2014 LAccounts Lreceivable Lof L$600 Lmillion
• 2013 LInventories Lof L$1 Lbillion
• 2014 LInventories Lof L$800 Lmillion
• 2013 LAccounts Lpayable Lof L$250 Lmillion
• 2014 LAccounts Lpayable Lof L$300 Lmillion
WhatYare Lthe Linventory Ldays Lfor Lthe Lcompany? L- Lcorrect Lanswer-65.7 Ldays
Which Lof Lthe Lfollowing Lis Ltrue L- Lcorrect Lanswer-
Coca LCola's Lbrand Lname Lis Lnot Lreflected Las Lan Lintangible Lasset Lon Lits Lbalance Lsheet
A Lcompany Lhas Lthe Lfollowing Linformation:
• 2014 Lshare Lrepurchase Lplan Lof L$4 Lbillion
• Average Lshare Lprice Lof L$60 Lfor Lthe Lyear L2013
• Expected LEPS Lgrowth Lfor L2014 Lof L10%
What Lshould Lthe Lnumber Lof Lshares Lrepurchased Lby Lthe Lcompany Lbe Lin Lyour Lfinancial
Lmodel? L- Lcorrect Lanswer-60.6 Lmillion
non-controlling Linterest L- Lcorrect Lanswer-
is Lan Lexpense Lon Lthe Lincome Lstatement Land Lequity Lo Lthe Lbalance Lsheet
A Lcompany Lhas Lthe Lfollowing Linformation:
• 2013 Lretained Learnings Lbalance Lof L$12 Lbillion
• Net Lincome Lof L$3.5 Lbillion Lin L2014
• Capex Lof L$200 Lmillion Lin L2014
• Preferred Ldividends Lof L$100 Lmillion Lin L2014
WALL STREET PREP EXAM QUESTIONS WITH CORRECT ANSWERS 2025/2026
What Lis Lgenerally Lnot Lconsidered Lto Lbe La Lpre-tax Lnon-recurring L(unusual Lor Linfrequent)
Litem? L- Lcorrect Lanswer-Extraordinary Lgains/losses
what Lis Lfalse Labout Ldepreciation Land Lamortization L- Lcorrect
Lanswer- LD&A Lmay Lbe Lclassified Lwithin Linterest Lexpense
Company LX's Lcurrent Lassets Lincreased Lby L$40 Lmillion Lfrom L2007-
2008 Lwhile Lthe Lcompanies Lcurrent Lliabilities Lincreased Lby L$25 Lmillion Lover Lthe Lsame Lperiod. Lthe
Lcash Limp Lact Lof Lthe Lchange Lin Lworking Lcapital Lwas L- Lcorrect Lanswer-a Ldecrease Lof L15 Lmillion
the Lfinal Lcomponent Lof Lan Learnings Lprojection Lmodel LisYcalculating Linterest Lexpense. Lthe
Lcalculation Lmay Lcreate La Lcircular Lreference Lbecause L- Lcorrect Lanswer-
interest Lexpense Laffects Lnet Lincome, Lwhich Laffects LFCF, Lwhich Laffects Lthe Lamount Lof Ldebt La Lcompany
Lpays Ldown, Lwhich, Lin Lturn Laffects Lthe Linterest Lexpense, Lhence Lthe Lcircular Lreference
a L10-q Lfinancial LfilingYhas Lall Lof Lthe Lfollowing Lcharacteristics Lexcept L-Ycorrect
Lanswer- Lissued Lfour Ltimes La Lyear.
Depreciation LExpense Lfound Lin Lthe LSG&A Lline Lof Lthe Lincome Lstatement Lfor La Lmanufacturing Lfirm
Lwould Lm Lost Llikely Lbe Lattributable Lto Lwhich Lof Lthe Lfollowing L- Lcorrect Lanswer-
computers Lused Lby Lthe Laccounting Ldepartment
If La Lcompany Lhas Lprojected Lrevenues Lof L$10 Lbillion, La Lgross Lprofit Lmargin Lof L65%, Land Lprojected
LSG&A Lexp Lenses Lof L$2billion, Lwhat Lis Lthe Lcompany's Loperating L(EBIT) Lmargin? L- Lcorrect Lanswer-
45%
A Lcompany Lhas Lthe Lfollowing Linformation, L1. L2014 Lrevenues Lof L$5 Lbillion,2013 LAccounts
Lreceivable Lof L$40 L0 Lmillion, L2014 Laccounts Lreceivable Lof L$600 Lmillion, Lwhat Lare Lthe Ldays Lsales
Loutstanding L- Lcorrect Lanswer- L36.5
, A Lcompany Lhas Lthe Lfollowing Linformation:
• 2014 LRevenues Lof L$8 Lbillion
• 2014 LCOGS Lof L$5 Lbillion
• 2013 LAccounts Lreceivable Lof L$400 Lmillion
• 2014 LAccounts Lreceivable Lof L$600 Lmillion
• 2013 LInventories Lof L$1 Lbillion
• 2014 LInventories Lof L$800 Lmillion
• 2013 LAccounts Lpayable Lof L$250 Lmillion
• 2014 LAccounts Lpayable Lof L$300 Lmillion
WhatYare Lthe Linventory Ldays Lfor Lthe Lcompany? L- Lcorrect Lanswer-65.7 Ldays
Which Lof Lthe Lfollowing Lis Ltrue L- Lcorrect Lanswer-
Coca LCola's Lbrand Lname Lis Lnot Lreflected Las Lan Lintangible Lasset Lon Lits Lbalance Lsheet
A Lcompany Lhas Lthe Lfollowing Linformation:
• 2014 Lshare Lrepurchase Lplan Lof L$4 Lbillion
• Average Lshare Lprice Lof L$60 Lfor Lthe Lyear L2013
• Expected LEPS Lgrowth Lfor L2014 Lof L10%
What Lshould Lthe Lnumber Lof Lshares Lrepurchased Lby Lthe Lcompany Lbe Lin Lyour Lfinancial
Lmodel? L- Lcorrect Lanswer-60.6 Lmillion
non-controlling Linterest L- Lcorrect Lanswer-
is Lan Lexpense Lon Lthe Lincome Lstatement Land Lequity Lo Lthe Lbalance Lsheet
A Lcompany Lhas Lthe Lfollowing Linformation:
• 2013 Lretained Learnings Lbalance Lof L$12 Lbillion
• Net Lincome Lof L$3.5 Lbillion Lin L2014
• Capex Lof L$200 Lmillion Lin L2014
• Preferred Ldividends Lof L$100 Lmillion Lin L2014
