3 STATEMENT MODELING 2024
(CFI) EXAM
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
Define Capital Structure - ANSWERS-Mixture of debt and equity a firm uses to
finance its self
QUESTION 2
Two types of debt a company can take on - ANSWERS-1. Term debt
2. Revolving Credit Line
QUESTION 3
Two types of equity a company can take on - ANSWERS-1. Common Shares
2. Preferred Shares
END OF
PAGE 1
, 3 STATEMENT MODELING 2024
(CFI) EXAM
QUESTION 4
When determining capital structure what schedules do you create first? -
ANSWERS-1. Debt Schedule
2. Equity Schedule
QUESTION 5
What are three types of techniques you can use to find errors in the balance sheet?
- ANSWERS-1. Finding Hardcodes (F5->Special->Constants-> Uncheck Texts)
2. Finding Row Differences (F5->Row Differences->Go) or (highlight cells the
press [Ctrl + "\"])
3. Tracing Precedents (Ctrl +[ ) or to go back (F5)
4. Missing Line Items (Make sure all lines on the BS are linked to the CF
statement)
5. Incorrect Balance Sheet Wiring (Make sure to see if the formula in retained
earnings does not equal =Assets-liabilities-Equity)
QUESTION 6
T/F We generally Model a company's capital structure in order of seniority from
most to least senior - ANSWERS-True
END OF
PAGE 2
(CFI) EXAM
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
Define Capital Structure - ANSWERS-Mixture of debt and equity a firm uses to
finance its self
QUESTION 2
Two types of debt a company can take on - ANSWERS-1. Term debt
2. Revolving Credit Line
QUESTION 3
Two types of equity a company can take on - ANSWERS-1. Common Shares
2. Preferred Shares
END OF
PAGE 1
, 3 STATEMENT MODELING 2024
(CFI) EXAM
QUESTION 4
When determining capital structure what schedules do you create first? -
ANSWERS-1. Debt Schedule
2. Equity Schedule
QUESTION 5
What are three types of techniques you can use to find errors in the balance sheet?
- ANSWERS-1. Finding Hardcodes (F5->Special->Constants-> Uncheck Texts)
2. Finding Row Differences (F5->Row Differences->Go) or (highlight cells the
press [Ctrl + "\"])
3. Tracing Precedents (Ctrl +[ ) or to go back (F5)
4. Missing Line Items (Make sure all lines on the BS are linked to the CF
statement)
5. Incorrect Balance Sheet Wiring (Make sure to see if the formula in retained
earnings does not equal =Assets-liabilities-Equity)
QUESTION 6
T/F We generally Model a company's capital structure in order of seniority from
most to least senior - ANSWERS-True
END OF
PAGE 2
