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Exam Questions With Correct Answers
/ // // // //
What //is //generally //not //considered //to //be //a //pre-tax //non-
recurring //(unusual //or //infrequent) //item? //- //verified //answer(s)-
✔✔Extraordinary //gains/losses
what //is //false //about //depreciation //and //amortization //- //verified //answer(s)-
✔✔D&A //may //be //classified //within //interest //expense
Company //X's //current //assets //increased //by //$40 //million //from //2007-
2008 /
/while /
/the /
/companies /
/current /
/liabilities /
/increased /
/by /
/$25 /
/million /
/over /
/the /
/same /
/period. //the //cash //impact //of //the //change //in //working //capital //was //- //verified //answer(s)-
✔✔a //decrease //of //15 //million
,the /
/final /
/component /
/of /
/an /
/earnings /
/projection /
/model /
/is /
/calculating /
/interest /
/expense. //the //calculation //may //create //a //circular //reference //because //- //verified //answer(s)-
✔✔interest /
/expense /
/affects /
/net /
/income, /
/which /
/affects /
/FCF, /
/which /
/affects /
/the /
/amount /
/of /
/debt //
a/
/company /
/pays //down, //which, //in //turn //affects //the //interest //expense, //hence //the //circular //reference
a //10-q //financial //filing //has //all //of //the //following //characteristics //except //- //verified //answer(s)-
✔✔issued //four //times //a //year.
Depreciation /
/Expense /
/found /
, /in /
/the /
/SG&A /
/line /
/of /
/the /
/income /
/statement /
/for //
a/
/manufacturing /
/firm //would //most //likely //be //attributable //to //which //of //the //following //- //verified //answer(s)-
✔✔computers //used //by //the //accounting //department
If //
a/
/company /
/has /
/projected /
/revenues //of //$10 //billion, //a //gross //profit //margin //of //65%, //and //projected //SG&A //expenses //of
//$2billion, //what //is //the //company's //operating //(EBIT) //margin? //- //verified //answer(s)-✔✔45%
A/
/company /
/has /
/the /
/following /
/information, /
/1. /
/2014 /
/revenues /
/of /
/$5 /
/billion,2013 /
/Accounts /
/receivable /
Street
/ /
Prep
/ /
Premium
/ /
Exam Questions With Correct Answers
/ // // // //
What //is //generally //not //considered //to //be //a //pre-tax //non-
recurring //(unusual //or //infrequent) //item? //- //verified //answer(s)-
✔✔Extraordinary //gains/losses
what //is //false //about //depreciation //and //amortization //- //verified //answer(s)-
✔✔D&A //may //be //classified //within //interest //expense
Company //X's //current //assets //increased //by //$40 //million //from //2007-
2008 /
/while /
/the /
/companies /
/current /
/liabilities /
/increased /
/by /
/$25 /
/million /
/over /
/the /
/same /
/period. //the //cash //impact //of //the //change //in //working //capital //was //- //verified //answer(s)-
✔✔a //decrease //of //15 //million
,the /
/final /
/component /
/of /
/an /
/earnings /
/projection /
/model /
/is /
/calculating /
/interest /
/expense. //the //calculation //may //create //a //circular //reference //because //- //verified //answer(s)-
✔✔interest /
/expense /
/affects /
/net /
/income, /
/which /
/affects /
/FCF, /
/which /
/affects /
/the /
/amount /
/of /
/debt //
a/
/company /
/pays //down, //which, //in //turn //affects //the //interest //expense, //hence //the //circular //reference
a //10-q //financial //filing //has //all //of //the //following //characteristics //except //- //verified //answer(s)-
✔✔issued //four //times //a //year.
Depreciation /
/Expense /
/found /
, /in /
/the /
/SG&A /
/line /
/of /
/the /
/income /
/statement /
/for //
a/
/manufacturing /
/firm //would //most //likely //be //attributable //to //which //of //the //following //- //verified //answer(s)-
✔✔computers //used //by //the //accounting //department
If //
a/
/company /
/has /
/projected /
/revenues //of //$10 //billion, //a //gross //profit //margin //of //65%, //and //projected //SG&A //expenses //of
//$2billion, //what //is //the //company's //operating //(EBIT) //margin? //- //verified //answer(s)-✔✔45%
A/
/company /
/has /
/the /
/following /
/information, /
/1. /
/2014 /
/revenues /
/of /
/$5 /
/billion,2013 /
/Accounts /
/receivable /
