Financial Modeling MCQs

You can activate a cell by

• Pressing the Tab key

• Clicking the cell

• Pressing an arrow key

• All of above

A worksheet range is a

• A command used for data modeling

• A range of values such as from 23 to 234

• A group of cells

• A group of worksheets

If you want to generate values for a target output by changing multiple inputs and setting multiple constraints on the inputs, you should use the ______ function in Excel.

• Solver

• Scenario

• Goal Seek

• Data Table

which of the following VLOOKUP formulas should be entered in cell B2 to show the result "8.2%"

• =VLOOKUP(B1,A5:C8,2,FALSE)

• =VLOOKUP(B1,A5:C8,2,TRUE)

• =VLOOKUP(B1,A5:C8,3,FALSE)

• =VLOOKUP(B1,A5:C8,3,TRUE)

What are the keyboard shortcut keys to insert Excel function arguments automatically?*

• Ctrl + A

• Ctrl + F3

• Ctrl + Shift + K

• Ctrl + Shift + A

A financial analyst wants to sensitize the gross profit of a company using two major inputs: gross margin (horizontal inputs) and sales growth percentage (vertical inputs). Given the screenshot below, what values should be entered for the row input cell and column input cell to generate the data table?*

• Row input cell: B11; column input cell: A12

• Row input cell: A12; column input cell: B11

• Row input cell: B3; column input cell: B2

• Row input cell: B2; column input cell: B3

The best financial models should (choose the best option from below)

• Keep things as simple as possible while provides sufficient detail for decision making

• Offer users a high degree of detail and precision

• Be easy to follow and audit

• Be very simple and have the minimum level of detail

When structuring a financial model in Excel, it is ideal that

• Processing is as detailed and complicated as possible

• Inputs are entered more than once whenever needed

• Outputs are kept at the very end of the model so they are not quickly accessible

• Processing is broken down into simple steps

Which of the following is not a core building block of a robust financial model?

• Inputs

• Interpretation

• Processing

• Outputs

1. --------------------- = total assets/common equity

• Equity multiplier

• Graphical multiplier

• Turnover multiplier

• Stock multiplier