Adventis
A margin typically shows a line item as a percentage of: A) Revenue B) Enterprise value C) Net Income D) Gross Profit E) Cash
A
How do you shift from tab to tab within an Excel workbook on a PC? A) Control + Page Down / Page Up B) Shift + Left Arrow / Right Arrow C) Shift + Page Down / Page Up D) Control + Left Arrow / Right Arrow E) Left Arrow + Right Arrow
A
How is EBITDA typically calculated? A) Operating income plus depreciation and amortization B) Net income less taxes C) Gross profit plus depreciation and amortization D) Cash flow from operations plus depreciation and amortization E) Cash flow from operations less capital expenditures
A
The Income Statement A) Presents the results of operations over a period of time B) Discloses the resources an organization controls and the claims against those resources C) Shows an organization's financial position at a point in time D) Shows the inflows and outflows over a period of time
A
What is calculation for revenue growth? A) Current year's revenue / last year's revenue - 1 B) Current year's revenue / next year's revenue - 1 C) Current year's revenue / last year's revenue D) Current year's revenue / next year's revenue
A
What is the calculation for return on equity? A) Net earnings / shareholders' equity B) Gross margin / shareholders' equity C) Shareholders' equity / EBITDA D) Operating income / shareholders' equity E) EBITDA / shareholders' equity
A
When an invoice is paid to an organization by a customer what is the balance sheet outcome? A) Accounts receivable is reduced and cash is increased B) Revenue is increased and accounts receivable is increased C) Accounts receivable is increased and cash is reduced D) Revenue is increased and accounts receivable is reduced
A
Which of the following describes dividend yield? A) The return on a share of common stock B) Measures the value of common stock C) The amount of earnings attributable to a share of common stock D) Shows how much investors are willing to pay per dollar of earnings
A
Which of the following is false? A) Debt + cash = net debt B) Debt is a cheaper form of capital C) Shareholders' equity can be negative D) Equity holders are not guaranteed to get their investment back
A
A company has long-term debt of $500,000 and EBITDA of $10,000. What conclusion could a financial analyst draw about this company? A) The company may not be able to pay its short-term liabilities B) The company is potentially over levered C) The company does not use its assets efficiently D) The company's profitability is low
B
How is earnings per share calculated? A) Net income / shares repurchased in the past year B) Net income / average shares outstanding C) Operating profit / average shares outstanding D) Average shares outstanding / operating profit E) Shares outstanding / net income
B
How is the number of shares repurchased typically calculated in a financial model? A) Shares outstanding x change in free cash flow B) Shares repurchases x average price paid per share C) Shares outstanding x dividend growth rate D) Shares repurchases / average price paid per share
B
What is an example of cost of sales A) Travel costs B) Raw material cos used in the production process C) Interest expense D) Management salaries
B
What is the definition of revenue? A) The sum of all checks B) The amount of charged for the delivery of goods and services C) The sum of all checks received from customers D) The sum of all checks received from customers and vendors
B
What is the most common calculation for corporate tax rate? A) Corporate taxes / net earnings B) Corporate taxes / earnings before taxes C) Corporate taxes / operating revenue D) Corporate taxes x revenue
B
Which of the following balance sheet items are included in working capital? A) Debt B) Accounts receivable C) Equity D) Cash E) Long-term liabilities
B
Which of the following describes earnings per share? A) Shows how much investors are willing to pay per dollar of earnings B) Shows the amount of earnings attributable to a share of common stock C) The return on a share of common stock D) Measures the value of common stock
B
Which of the following is false? A) Positive profit increases equity B) Repurchasing shares increases equity C) Paying dividends decreases equity D) Issuing new shares increases equity
B
Which of the following statements about EBITDA is not true? A) It excludes the affects from different forms of financing B) It is a proxy for total cash flow of a compan C) It excludes the affects of different rules around depreciation D) It is widely used when assessing the performance of companies across different industries
B
What is the direct cost of producing revenue? A) Operating expenses B) Non-operating expenses C) Cost of sales D) Other expenses
C
Which of the following falls into investing activities? A) Cost of goods sold B) Depreciation C) Capital Expenditures D) Change in working capital
C
Which of the following line items do not directly affect shareholders' equity? A) Dividends B) Net income C) Capital expenditures D) Shares repurchases
C
All else being equal, depreciation increases by $100. Assuming corporate taxes are 40%, which of the following is a false statement? A) Net income would be reduced by $60 B) Shareholders' equity would be reduced by $60 C) PP&E would be reduced by $100 D) Cash flow from operations would be reduced by $100 E) Cash would increase by $40
D
An organization purchases a tractor without financing. What impact does this purchase have on the balance sheet? A) Property, plant & equipment decreases and cash decreases B) Property, plant & equipment increases and cash increases C) Property, plant & equipment decreases and cash increases D) Property, plant & equipment increases and cash decreases
D
How is the number of shares repurchased typically calculated in a financial model? A) Share repurchases / average price paid per share B) Shares outstanding x change in free cash flow C) Shares outstanding x dividend growth rate D) Share repurchases x average price paid per share
D
If debt is reduced, what is the corresponding transaction on the balance sheet? A) Equity is increased B) Equity is reduced C) Cash is increased D) Cash is reduced
D
The income statement connects to the cash flow statement via which account? A) Equity B) Corporate taxes C) Operating profit D) Net income
D
What is a standard approach to calculating free cash flow? A) Net income plus depreciation plus charge in working capital B) EBIT plus depreciation and amortization C) Cash flow from operations plus depreciation and amortization D) Cash flow from operations less capital expenditures
D
Which of the following balance sheet items are not included in working capital? A) Accounts payable B) Accrued liabilities C) Accounts receivable D) Short-term debt E) Other current liabilities
D
Which of the following does not fall into financing activities? A) Share repurchases B) Debt issuances C) Dividends D) Acquisitions
D
Which of the following does not fall into operating activities A) Depreciation B) Net income C) Change in working capital D) Capital expenditures
D
Which of the following is not a credit ratio? A) Debt / Equity B) Interest coverage C) Debt / EBITDA D) Gross margin
D
Which of the following is not accurate in regards to the balance sheet A) Shows an organization's financial position at a point in time B) Discloses the resources an organization controls and the claims against those resources C) Includes items such as cash, accounts receivable, and equity D) Presents the results of operations over a period of time
D
Which of the following is true? A) Capital expenditures do not affect PP&E B) Capital expenditures reduces PP&E C) Depreciation increases PP&E D) Capital expenditures are a use of cash
D
Which of the following statements is true? A) Red font is used for inputs B) Black font is used for inputs C) Blue font is used for calculations D) Green font is used for links to cells in other tabs
D
What metric states what is available for distribution to creditors and shareholders? A) Cash flow from financing activities B) Cash flow from investing activities C) Net income D) Cash flow from operating activities E) Free cash flow
E
