Question 1

If the NPER function returns the error value #REF a loan cannot be paid back in any length of time._________________________

Accepted Answer

A) True 
 B)False

Question 2

The difference between a loan and an investment is based on the direction of the ____________________.

Accepted Answer

The answer of The difference between a loan and an...

Question 3

To calculate the depreciation of an asset,you need to know all of the following EXCEPT the ____.

Accepted Answer

A)  asset's original cost 
B)  asset's useful life 
C)  asset's type 
D)  rate of depreciation 
A)  asset's original cost 
B)  asset's useful life 
C)  asset's type 
D)  rate of depreciation

Question 4

The point at which the net present value of an investment equals ____ is the internal rate of return.

Accepted Answer

A)  -1 
B)  0 
C)  0.1 
D)  1 
A)  -1 
B)  0 
C)  0.1 
D)  1

Question 5

With the PMT function,the type argument is ____ when the payments are made at the end of each period.

Accepted Answer

A)  0 
B)  1 
C)  a 
D)  -1 
A)  0 
B)  1 
C)  a 
D)  -1

Question 6

MATCHING
Identify the letter of the choice that best matches the phrase or definition.
-The difference between the present value of an investment and the initial expenditure on that investment

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 7

The DB function used to calculate the declining balance depreciation has the following syntax: ____.

Accepted Answer

A)  =DB(salvage,life,period [month]) 
B)  =DB(cost,salvage,period [month]) 
C)  =DB(salvage,cost,life,period [month]) 
D)  =DB(cost,salvage,life,period [month]) 
A)  =DB(salvage,life,period [month]) 
B)  =DB(cost,salvage,period [month]) 
C)  =DB(salvage,cost,life,period [month]) 
D)  =DB(cost,salvage,life,period [month])

Question 8

Financial functions format calculated values as currency,with ____.

Accepted Answer

A)  positive cash flow appearing in red font 
B)  positive cash flow enclosed in parentheses 
C)  negative cash flow appearing in green font 
D)  negative cash flow appearing in red font 
A)  positive cash flow appearing in red font 
B)  positive cash flow enclosed in parentheses 
C)  negative cash flow appearing in green font 
D)  negative cash flow appearing in red font

Question 9

A positive cash flow,or ____________________,occurs whenever money is flowing into the account.

Accepted Answer

The answer of A positive cash flow,or ____________________,occurs whenever money...

Question 10

A regular cash flow occurs when cash is going away from the investor._________________________

Accepted Answer

A) True 
 B)False

Question 11

To determine the interest rate needed to reach your savings goal,you can use the ____________________ function.

Accepted Answer

The answer of To determine the interest rate needed to...

Question 12

The process of allocating the original cost of an investment over the years of use is known as ____.

Accepted Answer

A)  interest 
B)  balance 
C)  depreciation 
D)  amortization 
A)  interest 
B)  balance 
C)  depreciation 
D)  amortization

Question 13

The ____ function calculates the future value of an investment or loan.

Accepted Answer

A)  RATE 
B)  PV 
C)  NPER 
D)  FV 
A)  RATE 
B)  PV 
C)  NPER 
D)  FV

Question 14

A(n)____ worksheet projects the company's expected assets,liabilities,and equity.

Accepted Answer

A)  Asset Report 
B)  Income Statement 
C)  Balance Sheet 
D)  Transactions 
A)  Asset Report 
B)  Income Statement 
C)  Balance Sheet 
D)  Transactions

Question 15

Most Excel financial functions require a particular ____ to the cash flow to return the correct value.

Accepted Answer

A)  index 
B)  valence 
C)  orientation 
D)  direction 
A)  index 
B)  valence 
C)  orientation 
D)  direction

Question 16

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 straight-line depreciation?

Accepted Answer

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

Question 17

Cash flow is the movement of cash assets ____ an account.

Accepted Answer

A)  into 
B)  out of 
C)  into or out of 
D)  none of the above 
A)  into 
B)  out of 
C)  into or out of 
D)  none of the above

Question 18

Excel supports ____ function(s)to calculate depreciation under different assumptions.

Accepted Answer

A)  one 
B)  two 
C)  five 
D)  seven 
A)  one 
B)  two 
C)  five 
D)  seven

Question 19

MATCHING
Identify the letter of the choice that best matches the phrase or definition.
-Calculates the number of payments required to pay off a loan or reach an investment goal

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 20

When you borrow money,the money you receive represents a ____ cash flow.

Accepted Answer

A)  positive 
B)  negative 
C)  fixed 
D)  neutral 
A)  positive 
B)  negative 
C)  fixed 
D)  neutral

If the NPER function returns the error value #REF a loan cannot be paid back in any length of time._________________________

The difference between a loan and an investment is based on the direction of the ____________________.

To calculate the depreciation of an asset,you need to know all of the following EXCEPT the ____.

The point at which the net present value of an investment equals ____ is the internal rate of return.

With the PMT function,the type argument is ____ when the payments are made at the end of each period.

MATCHING Identify the letter of the choice that best matches the phrase or definition. -The difference between the present value of an investment and the initial expenditure on that investment

The DB function used to calculate the declining balance depreciation has the following syntax: ____.

Financial functions format calculated values as currency,with ____.

A positive cash flow,or ____________________,occurs whenever money is flowing into the account.

A regular cash flow occurs when cash is going away from the investor._________________________

To determine the interest rate needed to reach your savings goal,you can use the ____________________ function.

The process of allocating the original cost of an investment over the years of use is known as ____.

The ____ function calculates the future value of an investment or loan.

A(n)____ worksheet projects the company's expected assets,liabilities,and equity.

Most Excel financial functions require a particular ____ to the cash flow to return the correct value.

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 straight-line depreciation?

Cash flow is the movement of cash assets ____ an account.

Excel supports ____ function(s)to calculate depreciation under different assumptions.

MATCHING Identify the letter of the choice that best matches the phrase or definition. -Calculates the number of payments required to pay off a loan or reach an investment goal

When you borrow money,the money you receive represents a ____ cash flow.

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

Exam 9: Working With Financial Tools and Functions

If the NPER function returns the error value #REF a loan cannot be paid back in any length of time._________________________

The difference between a loan and an investment is based on the direction of the ____________________.

To calculate the depreciation of an asset,you need to know all of the following EXCEPT the ____.

The point at which the net present value of an investment equals ____ is the internal rate of return.

With the PMT function,the type argument is ____ when the payments are made at the end of each period.

MATCHING Identify the letter of the choice that best matches the phrase or definition. -The difference between the present value of an investment and the initial expenditure on that investment

The DB function used to calculate the declining balance depreciation has the following syntax: ____.

Financial functions format calculated values as currency,with ____.

A positive cash flow,or ____________________,occurs whenever money is flowing into the account.

A regular cash flow occurs when cash is going away from the investor._________________________

To determine the interest rate needed to reach your savings goal,you can use the ____________________ function.

The process of allocating the original cost of an investment over the years of use is known as ____.

The ____ function calculates the future value of an investment or loan.

A(n)____ worksheet projects the company's expected assets,liabilities,and equity.

Most Excel financial functions require a particular ____ to the cash flow to return the correct value.

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 straight-line depreciation?

Cash flow is the movement of cash assets ____ an account.

Excel supports ____ function(s)to calculate depreciation under different assumptions.

MATCHING Identify the letter of the choice that best matches the phrase or definition. -Calculates the number of payments required to pay off a loan or reach an investment goal

When you borrow money,the money you receive represents a ____ cash flow.

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