study

  Ques 1:  You want to record a bill that you received from one of your vendors. What is the quickest way to get to the Bill screen? (a) In the navigation bar on the left, click Dashboard. (b) In the Navigation bar on the left, click Expenses. (c) In the Navigation bar on the left, click Bills. (d) At the top right of the QuickBooks Online screen, click the + icon. Answer: Option(D):  At the top right of the QuickBooks Online screen, click the + icon. Feedback When you click the + icon at the top right, you then click the Bill entry to open the Bill screen. Ques 2:  Which form can you not add bundles to? (a) invoice (b) estimate (c) sales receipt (d) bill Answer: Option(D):  bill Feedback You can't add bundles to bills because bundles are available only on sales forms. Ques 3:  Your sales tax filing frequency is determined by which factors? (a) your monthly sales tax liability (b) your monthly sales tax liability and your sales tax rate (c) the tax agency (...

Ques 1:  How do the net present value (NPV) and the internal rate of return (IRR) relate to decision-making regarding a project? (a) If the NPV is positive, regardless of IRR, you should go forward with the project. (b) If the internal rate of return is positive, you should go forward with the project. (c) If the IRR and NPV tell you two different things, you should not go ahead with the project. (d) If the discount rate is higher than the IRR, you should go forward with the project. Answer: Option(A):  If the NPV is positive, regardless of IRR, you should go forward with the project. Feedback This tells you that the profit you will generate, in present value dollars, makes it worthwhile to move forward with the project. Ques 2:  What is the decision criteria used with IRR? (a) Is the IRR greater than WACC? (b) Is the IRR greater than 0%? (c) Is the IRR greater than the NPV? (d) Is the IRR greater than profit? Answer: Option(A):  Is the IRR greater than WACC? Feedbac...

Ques 1:  What reduces the quality of your financial model? (a) using historical revenue and expense trends to project their future values (b) projecting price, cost, of new capacity, and cost structure (c) using multiple measures of sales in representing operating data (d) accounting for real-world drivers when projecting changes to wages Answer: Option(C):  using multiple measures of sales in representing operating data Ques 2:  Which choice is NOT a method of financial forecasting? (a) regression analysis (b) top-down analysis (c) bottoms-up analysis (d) side-to-side analysis Answer: Option(D):  side-to-side analysis Feedback Side-to-side analysis is not a method for forecasting. Ques 3:  To better understand the value of a firm, what should your valuation model consider? (a) Free cash flows should be calculated for the worst-case scenario. (b) Free cash flows must ignore any capital expenditures. (c) Free cash flows need to be projected for at least 10 years....

Ques 1:  What do you calculate when you use the corporate model? (a) the return earned by an investor (b) the discounted cash flow (c) the terminal value of the company (d) the purchase price of a company Answer: Option(C):  the terminal value of the company Feedback The corporate model focuses on calculating the value at the conclusion of the model. Ques 2:  What is a key goal of financial modeling? (a) Adding detail to complex information. (b) Adding detail to simple scenarios. (c) Summarizing complex information in a detailed way. (d) Summarizing complex information in an understandable way. Answer: Option(D):  Summarizing complex information in an understandable way. Ques 3:  What tip will you provide to a colleague working on a financial model in Excel? (a) Add any necessary information as cell comments. (b) Separate any three-statement models into different worksheets. (c) Keep your assumptions in your model. (d) Separate some data to other Excel workbooks...

Ques 1:  What is the approximate average return on stocks over the last century? (a) 6% (b) 3% (c) 11% (d) 16% Answer: Option(C):  11% Ques 2:  What is the term for a single unit of stock? (a) percent (b) share (c) portion (d) part Answer: Option(B):  share Feedback A single unit of stock is called a share. Ques 3:  What does HSA stand for? (a) health savings account (b) health savings annuity (c) health standard annuity (d) health standard account Answer: Option(A):  health savings account Ques 4:  What factor would likely lead to a lower premium on a home insurance policy? (a) higher deductible (b) shorter time to maturity (c) lower deductible (d) higher covered amount Answer: Option(A):  higher deductible Ques 5:  What type of life insurance has a fixed premium throughout the beneficiary's life? (a) none of these answers (b) universal life (c) variable life (d) whole life Answer: Option(D):  whole life Feedback Whole life policies g...