CFI EXAM STUDY QUESTIONS &
CORRECT UPDATED PASSED
ANSWERS
What is a reason for corporations to use debt in capital financing? - correct answer ✔✔To lower
the cost of capital
What is the function of Trace Precedents? - correct answer ✔✔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
answer ✔✔There are a large number of potential companies to compare to
Cells are __ by default, so before protecting a worksheet you must __ - correct answer
✔✔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 answer ✔✔gross profit margin ratio
Which of the following is not a best practice of designing your powerpoint presentation? -
correct answer ✔✔use different fonts and colors throughout the presentation
Which of the following items are not considered when calculating the income from operations?
- correct answer ✔✔Interest
which of the following is the correct ordering of the capital stack (from most secure to least
secure)? - correct answer ✔✔Term loan - high yield binds - common shares
, When r=-0.99, the relationship between two sets of variables is - correct answer ✔✔strong
negative
in powerpoint, which tab of the ribbon would you use to insert a fade on a textbox during the
presentation? - correct answer ✔✔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 answer ✔✔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 answer ✔✔1,014
Calculate the debt to tangible net worth ratio based on the information below: 5,000, 3,000,
1,700, 500 - correct answer ✔✔0.68 (interest bearing liabilities/Total assets - Equity + IA)
Which of the following does not describe a strategic buyer in M&A transactions - correct answer
✔✔they use leverage for maximum equity returns
In excel, how do you insert a chart in a selected cell like the image below? - correct answer
✔✔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 is - correct answer ✔✔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 to - correct answer
✔✔21 (use COGS instead of rev)
CORRECT UPDATED PASSED
ANSWERS
What is a reason for corporations to use debt in capital financing? - correct answer ✔✔To lower
the cost of capital
What is the function of Trace Precedents? - correct answer ✔✔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
answer ✔✔There are a large number of potential companies to compare to
Cells are __ by default, so before protecting a worksheet you must __ - correct answer
✔✔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 answer ✔✔gross profit margin ratio
Which of the following is not a best practice of designing your powerpoint presentation? -
correct answer ✔✔use different fonts and colors throughout the presentation
Which of the following items are not considered when calculating the income from operations?
- correct answer ✔✔Interest
which of the following is the correct ordering of the capital stack (from most secure to least
secure)? - correct answer ✔✔Term loan - high yield binds - common shares
, When r=-0.99, the relationship between two sets of variables is - correct answer ✔✔strong
negative
in powerpoint, which tab of the ribbon would you use to insert a fade on a textbox during the
presentation? - correct answer ✔✔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 answer ✔✔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 answer ✔✔1,014
Calculate the debt to tangible net worth ratio based on the information below: 5,000, 3,000,
1,700, 500 - correct answer ✔✔0.68 (interest bearing liabilities/Total assets - Equity + IA)
Which of the following does not describe a strategic buyer in M&A transactions - correct answer
✔✔they use leverage for maximum equity returns
In excel, how do you insert a chart in a selected cell like the image below? - correct answer
✔✔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 is - correct answer ✔✔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 to - correct answer
✔✔21 (use COGS instead of rev)
