WSP Financial Modelling questions with answers
Why do you never want to re-enter the same input more than once in your model? - **🔰
VERIFIED ANSWERS🔰 ✔✔Bc. you want your model to be dynamic
Components of a financial statement model? - **🔰 VERIFIED ANSWERS🔰 ✔✔Income
statement
Balance sheet
Statement of cash flows
Both historical results and forecasts
What colour text should you use for:
Hard-coded inputs
Formulas
Links to other worksheets
Links to other files
Links to data providers - **🔰 VERIFIED ANSWERS🔰 ✔✔Hard-coded inputs -> blue
Formulas -> black
Links to other worksheets -> green
Links to other files -> red
Links to data providers -> dark red
Should you hide rows? - **🔰 VERIFIED ANSWERS🔰 ✔✔No, grouping is better
, Should you merge cells? - **🔰 VERIFIED ANSWERS🔰 ✔✔No, centering across selection
is better
Footnotes vs comments? - **🔰 VERIFIED ANSWERS🔰 ✔✔Footnotes will show up when
model is printed
Comments for internal purposes
If you want to delete a worksheet and want to know if there are any links to that worksheet,
how can you do this? - **🔰 VERIFIED ANSWERS🔰 ✔✔Ctrl + F
and then search for the name of the worksheet you want to delete
What documents would you gather prior to starting to model? - **🔰 VERIFIED
ANSWERS🔰 ✔✔Latest annual report and corresponding 4th quarter press release and
earnings call transcript
Latest equity research & EPS consensus estimates
Last 6 months news run (stock splits, acquisitions and other material changes)
For quarterly models and LTM calculations...
-also get latest 3 quarterly reports and corresponding press releases & earnings calls
Why pay attention to press releases and earnings calls? - **🔰 VERIFIED ANSWERS🔰
✔✔Available weeks before the relevant annual/quarterly report -- if you ignore the press
release, you could be ignoring an entire quarter of availabe results
Has non-GAAP disclosures
Why do you never want to re-enter the same input more than once in your model? - **🔰
VERIFIED ANSWERS🔰 ✔✔Bc. you want your model to be dynamic
Components of a financial statement model? - **🔰 VERIFIED ANSWERS🔰 ✔✔Income
statement
Balance sheet
Statement of cash flows
Both historical results and forecasts
What colour text should you use for:
Hard-coded inputs
Formulas
Links to other worksheets
Links to other files
Links to data providers - **🔰 VERIFIED ANSWERS🔰 ✔✔Hard-coded inputs -> blue
Formulas -> black
Links to other worksheets -> green
Links to other files -> red
Links to data providers -> dark red
Should you hide rows? - **🔰 VERIFIED ANSWERS🔰 ✔✔No, grouping is better
, Should you merge cells? - **🔰 VERIFIED ANSWERS🔰 ✔✔No, centering across selection
is better
Footnotes vs comments? - **🔰 VERIFIED ANSWERS🔰 ✔✔Footnotes will show up when
model is printed
Comments for internal purposes
If you want to delete a worksheet and want to know if there are any links to that worksheet,
how can you do this? - **🔰 VERIFIED ANSWERS🔰 ✔✔Ctrl + F
and then search for the name of the worksheet you want to delete
What documents would you gather prior to starting to model? - **🔰 VERIFIED
ANSWERS🔰 ✔✔Latest annual report and corresponding 4th quarter press release and
earnings call transcript
Latest equity research & EPS consensus estimates
Last 6 months news run (stock splits, acquisitions and other material changes)
For quarterly models and LTM calculations...
-also get latest 3 quarterly reports and corresponding press releases & earnings calls
Why pay attention to press releases and earnings calls? - **🔰 VERIFIED ANSWERS🔰
✔✔Available weeks before the relevant annual/quarterly report -- if you ignore the press
release, you could be ignoring an entire quarter of availabe results
Has non-GAAP disclosures
