Financial Modelling and Analysis Certification

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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

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