Wall Street Prep Premium Exam Questions and Answers

1. What is generally not considered to be a pre-tax non-recurring (unusual or infrequent) item?: Ans- Extraordinary gains/losses 2. what is false about depreciation and amortization: Ans- D&A may be classified within interest expense 3. Company X's current assets increased by $40 million from while the companies current liabilities increased by $25 million over the same period. the cash impact of the change in working capital was: Ans- a decrease of 15 million 4. the final component of an earnings projection model is calculating interest expense. the calculation may create a circular reference because: Ans- 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 5. a 10-q financial filing has all of the following characteristics except: Ansissued four times a year. 6. 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: Ans- computers used by the accounting department