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Financial Modelling and Analysis Certification
Financial modeling is the task of building an abstract representation of a real world financial situation. This is a mathematical model designed to represent the performance of a financial asset or portfolio of a business, project, or any other investment.
Certificate:
Get Financial Modeling & Analysis Certificate from The Digital Adda which you can share in the Certifications section of your LinkedIn profile, on printed resumes, CVs, or other documents.
Exam Details:
- Format: Multiple Choice Question
- Questions: 20
- Passing Score: 16/20 or 80%
- Language: English
Question 1: Which Tools can be Used for Auditing the Financial Models in Excel?
- Model structure
- Go to special
- Trace precedents & dependents
- All of the above
Question 2: What illustrates a Financial Model
- Excel spreadsheet with numbers
- Calculation tool
- A decision making tool
- Excel containing historical financial data
Question 3: Which of the following results in increase of return on investment
- Increasing Turnover
- Reducing Expenses
- Increasing Capital Utilization
- All of these.
Question 4: What will be the ‘use’ of funds, if the following are balance sheet changes – Rs. 5,005 decrease in accounts receivable , Rs. 7,000 decrease in cash , Rs. 12,012 decrease in notes payable and Rs. 10,001 increase in accounts payable
- Rs. 7000 decrease in cash.
- Rs. 5005 decrease in accounts receivable.
- Rs. 10001 increase in accounts payable.
- Rs. 12012 decrease in notes payable.
Question 5: What does cash Inflows from a project usually includes
- Tax Shield of Depreciation
- After-tax Operating Profits
- Raising of Funds
- Both Tax Shield of Depreciation and Raising of Funds.
Question 6: What is mean by conglomeration?
- Corporation that is the largest amongst its competitors
- Corporation that sells its products and services in several countries
- Acquisition strategy whereby a company makes acquisitions in relatively unrelated business areas
- None of these
Question 7: How to determine liquid assets
- Current assets-stock-Prepaid expenses
- Current assets +stock+ prepaid expenses
- Current assets +Prepaid expenses
- None of these
Question 8: Which of the following formula will you use to make a number in cell C1 10% smaller than the number in C3 you enter?
- =C31.10 +C3110
- =C3%10
- =C3*.90
Question 9: Find the return on total assets, given Net income available to stockholders = Rs. 150 and Total assets = Rs. 2,100.
- 7.0E-4
- 0.0714
- 0.05 times
- 7.15 times
Question 10: What is a Greenfield?
- Building a new factory from scratch
- Modifying /upgrading a preexisting factory
- Integrating a newly purchased company quickly and efficiently
- All of the above
Question 11: Which of the following also refer to turnover ratios
- Activity ratios
- Performance ratios
- Both Activity ratios and Performance ratios
- None of these
Question 12: Which of the following can improve Debt to Total Assets Ratio
- Borrowing More
- Issue of Debentures
- Issue of Equity Shares
- Redemption of Debt.
Question 13: ___ helps to understand how the target variable is affected by the change in input variable.
- Modeling Analysis
- Financial Analysis
- Sensitivity Analysis
- Cash flow analysis
Question 14: Which of the following is of interest to suppliers and creditors
- Profitability Position
- Liquidity Position
- Share Position
- Debt Position.
Question 15: What is a valid statement
- Cost of capital is based on market value and usually is stated in real terms.
- Cost of capital is based on book value and usually is stated in real terms.
- Cost of capital is based on market value and usually is stated in nominal terms.
- Cost of capital is based on book value and usually is stated in nominal terms.
Question 16: What is the basis of computing the return on equity capital
- Funds of equity shareholders
- Equity capital only
- Either a or b
- None of these
Question 17: Which of the following is a disadvantage of Vertical Financial Model Layouts?
- Excessive sheets that need to be interlinked
- Tougher to navigate
- Too much data management
- All of these
Question 18: What is the factor for operating leverage
- Fixed Cost of Production
- Fixed Interest Cost
- Variable Cost
Question 19: Which of the following is not a current asset?
- Inventory
- Bills Receivable
- Land and Building
- Cash at hand
Question 20: Accounting entry of closing balance can be recorded for _
- Asset a/c and Liability a/c
- Liability a/c and Expenses a/c
- Income a/c and Expenses a/c
- Liability a/c and Owner’s equity a/c
