Question 1

The company's income after all expenses and taxes have been paid is called the ____.

Accepted Answer

A)  total income 
B)  net income 
C)  gross revenue 
D)  bottom line 
A)  total income 
B)  net income 
C)  gross revenue 
D)  bottom line

Question 2

A higher discount rate means that future dollars are ____ in comparison to current dollars.

Accepted Answer

A)  discounted less 
B)  discounted more 
C)  amortized more 
D)  amortized less 
A)  discounted less 
B)  discounted more 
C)  amortized more 
D)  amortized less

Question 3

FV is used to calculate the ____ of a fund.

Accepted Answer

A)  future value 
B)  fixed value 
C)  forecast value 
D)  first value 
A)  future value 
B)  fixed value 
C)  forecast value 
D)  first value

Question 4

In a(n)____ trend,the values change by a constant amount.

Accepted Answer

A)  linear 
B)  growth 
C)  periodic 
D)  orthogonal 
A)  linear 
B)  growth 
C)  periodic 
D)  orthogonal

Question 5

When you extrapolate a series,you do not have to specify a(n)____________________ value.

Accepted Answer

stopping
e

Question 6

If you know the beginning and ending values in a series and the series trend,you can fill in the missing values through ____________________.

Accepted Answer

The answer of If you know the beginning and ending...

Question 7

An error indicator (a red triangle in the upper-left corner of a cell)flags cells with an error or a potential error.

Accepted Answer

A) True 
 B)False

Question 8

You can calculate cumulative payments on interest and principal using the CUMIPMT and CUMPRINC functions.

Accepted Answer

A) True 
 B)False

Question 9

The future values of an investment can be ____.

Accepted Answer

A)  positive 
B)  negative 
C)  either a.or b. 
D)  neither a.nor b. 
A)  positive 
B)  negative 
C)  either a.or b. 
D)  neither a.nor b.

Question 10

The ____________________ function calculates the amount of a loan payment used to pay off the principal of the loan.

Accepted Answer

The answer of The ____________________ function calculates the amount of...

Question 11

The PMT value is also known as the ____________________ payment.

Accepted Answer

The answer of The PMT value is also known as...

Question 12

A(n)____ arrow provides a visual clue to the relationship between two cells by pointing from the precedent cell to the dependent cell.

Accepted Answer

A)  tracer 
B)  outline 
C)  index 
D)  key 
A)  tracer 
B)  outline 
C)  index 
D)  key

Question 13

When an investment requires the investor to make multiple future payments,rather than a single initial payment,____.

Accepted Answer

A)  it will show no change in rate of return 
B)  in will have a constant internal rate of return 
C)  it may have several different possible internal rates of return 
D)  none of the above 
A)  it will show no change in rate of return 
B)  in will have a constant internal rate of return 
C)  it may have several different possible internal rates of return 
D)  none of the above

Question 14

A(n)____________________ cash flow occurs whenever money is flowing out of the account.

Accepted Answer

The answer of A(n)____________________ cash flow occurs whenever money is...

Question 15

MATCHING
Identify the letter of the choice that best matches the phrase or definition.
-An interest rate that compares the value of current dollars to future dollars from a series of cash flows

Accepted Answer

A) PPMT function 
B) rate of return 
C) IPMT function 
D) IRR 
E) NPV function
F)RATE function
G)PMT function
H)XIRR function
I)NPV
J)NPER function
K)FV function
L)PV function 
A) PPMT function 
B) rate of return 
C) IPMT function 
D) IRR 
E) NPV function
F)RATE function
G)PMT function
H)XIRR function
I)NPV
J)NPER function
K)FV function
L)PV function

Question 16

The list of values in the IRR function must include at least one positive cash flow and one negative cash flow.

Accepted Answer

A) True 
 B)False

Question 17

Case-Based Critical Thinking Questions
Case 9-1
Christian is having a lot of problems with errors in a very complicated spreadsheet that he inherited from a colleague,and he turns to another co-worker,Sebastian,for tips in how to trace errors in the sheet.
-If in Christian's sheet,cell A4 is a precedent cell for cell B7,what kind of a cell is B7?

Accepted Answer

A)  contingent cell 
B)  dependent cell 
C)  antecedent cell 
D)  indicated cell 
A)  contingent cell 
B)  dependent cell 
C)  antecedent cell 
D)  indicated cell

Question 18

To ____ a series,the cells between the first and last cells in the series must be blank.

Accepted Answer

A)  extrapolate 
B)  concatenate 
C)  integrate 
D)  interpolate 
A)  extrapolate 
B)  concatenate 
C)  integrate 
D)  interpolate

Question 19

Case-Based Critical Thinking Questions
Case 9-2
Mackenzie is studying for her midterm exam in her accounting class.Her study partner Libby is her go-to person for help with calculating depreciation.
-Which of the following functions does Libby say is used to calculate a depreciation if it is variable?

Accepted Answer

A)  DB 
B)  SLN 
C)  SYD 
D)  VDB 
A)  DB 
B)  SLN 
C)  SYD 
D)  VDB

Question 20

Income statements are often created ____.

Accepted Answer

A)  monthly 
B)  semiannually 
C)  annually 
D)  any of the above 
A)  monthly 
B)  semiannually 
C)  annually 
D)  any of the above

The company's income after all expenses and taxes have been paid is called the ____.

A higher discount rate means that future dollars are ____ in comparison to current dollars.

FV is used to calculate the ____ of a fund.

In a(n)____ trend,the values change by a constant amount.

When you extrapolate a series,you do not have to specify a(n)____________________ value.

If you know the beginning and ending values in a series and the series trend,you can fill in the missing values through ____________________.

An error indicator (a red triangle in the upper-left corner of a cell)flags cells with an error or a potential error.

You can calculate cumulative payments on interest and principal using the CUMIPMT and CUMPRINC functions.

The future values of an investment can be ____.

The ____________________ function calculates the amount of a loan payment used to pay off the principal of the loan.

The PMT value is also known as the ____________________ payment.

A(n)____ arrow provides a visual clue to the relationship between two cells by pointing from the precedent cell to the dependent cell.

When an investment requires the investor to make multiple future payments,rather than a single initial payment,____.

A(n)____________________ cash flow occurs whenever money is flowing out of the account.

MATCHING Identify the letter of the choice that best matches the phrase or definition. -An interest rate that compares the value of current dollars to future dollars from a series of cash flows

The list of values in the IRR function must include at least one positive cash flow and one negative cash flow.

To ____ a series,the cells between the first and last cells in the series must be blank.

Income statements are often created ____.

Getting Started With Excel

Formatting a Workbook

Working With Formulas and Functions

Enhancing a Workbook With Charts and Graphs

Working With Excel Tables, Pivot-tables, and Pivot-charts

Managing Multiple Worksheets and Workbooks

Using Advanced Functions and Conditional Formatting

Developing an Excel Application

Performing What-If Analyses

Connecting to External Data

Expanding Excel With Visual Basic for Applications

Managing Your Files

Getting Started With Microsoft Office 2010

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Exam 9: Working With Financial Tools and Functions

The company's income after all expenses and taxes have been paid is called the ____.

A higher discount rate means that future dollars are ____ in comparison to current dollars.

FV is used to calculate the ____ of a fund.

In a(n)____ trend,the values change by a constant amount.

When you extrapolate a series,you do not have to specify a(n)____________________ value.

If you know the beginning and ending values in a series and the series trend,you can fill in the missing values through ____________________.

An error indicator (a red triangle in the upper-left corner of a cell)flags cells with an error or a potential error.

You can calculate cumulative payments on interest and principal using the CUMIPMT and CUMPRINC functions.

The future values of an investment can be ____.

The ____________________ function calculates the amount of a loan payment used to pay off the principal of the loan.

The PMT value is also known as the ____________________ payment.

A(n)____ arrow provides a visual clue to the relationship between two cells by pointing from the precedent cell to the dependent cell.

When an investment requires the investor to make multiple future payments,rather than a single initial payment,____.

A(n)____________________ cash flow occurs whenever money is flowing out of the account.

MATCHING Identify the letter of the choice that best matches the phrase or definition. -An interest rate that compares the value of current dollars to future dollars from a series of cash flows

The list of values in the IRR function must include at least one positive cash flow and one negative cash flow.

To ____ a series,the cells between the first and last cells in the series must be blank.

Income statements are often created ____.

Getting Started With Excel

Formatting a Workbook

Working With Formulas and Functions

Enhancing a Workbook With Charts and Graphs

Working With Excel Tables, Pivot-tables, and Pivot-charts

Managing Multiple Worksheets and Workbooks

Using Advanced Functions and Conditional Formatting

Developing an Excel Application

Performing What-If Analyses

Connecting to External Data

Expanding Excel With Visual Basic for Applications

Managing Your Files

Getting Started With Microsoft Office 2010

Filters