Mini Quiz Questions

What is the correct structure for IF functions in Excel?

condition to test, what to do if it's true, what to do if it's false

A firm has cash on hand at the start of the month of $300, net income of $30, Net sales of $200, and gross profit of $60. What is the COGS of the firm?

140

$200 - $60 = $140.

What is the advantage of Excel over other common accounting tools?

versatility

With its many built-in, special functions, Excel can be readily adapted to take on tasks, such as expense categorization or overall valuation.

What is NOT a common task for accountants?

Creating financial models.

Creating financial models is more likely to be a task for corporate finance people.

What is the correct structure for VLOOKUP functions in Excel?

(lookup value, table range, column index #, range lookup)\

three main parts:

• the value you’re looking up

• the table you’re looking it up from

• the column number to return

What is the correct structure for SUM functions in Excel?

=SUM(range)

What is the maximum number of transactions that can be imported to QuickBooks from Excel at once?

1000 is the maximum number of transactions that can be exported.

In a general ledger covering the month of January, the amounts of individual expense transactions are listed in column I, and the amounts of individual revenue transactions are listed in column J. How would you calculate the total amount of revenue for January?

Add all numbers in column J.

The sum of all the income transactions is the total income.

What is the benefit of using a pivot table?

It can quickly summarize a large amount of data. A pivot table can automatically group data and calculate sums based on input criteria.

T/F: Transactions can be exported from QuickBooks to Excel.

TRUE

What is one approach to measure EBITDA?

Add back depreciation/amortization, taxes, and interest to net income.

This is the formula for EBITDA.

Which function can be used to total all transactions by expense category in Excel?

SumIF

The SumIF function can be used to sum transactions that meet a criteria such as belonging to a particular category of expenses.

Consider that you need to generate separate P&L statements for weekdays and weekends. How would you do this in Excel?

Test the date of each transaction with an IF statement, to see whether it was a weekday or not.

The SUMIF function uses what structure?

Range of cells to test for criteria, criteria to test, Range of cells to sum

(range,criteria, sum_range)

How does IFRS differ from GAAP?

IFRS is based on guiding principles rather than specific rules, and it makes much greater use of market or fair values.

The General Ledger tracks expenses at what level?

transaction level

Total revenue for BIZZ0 in year 2020 is stored in C3, salaries for the year are in C7, and other expenses for the year are in C10. Which formula correctly calculates operating income?

C3-C7-C10

The formula can be simple, which is to subtract expenses from revenue.

What is the primary benefit of using formulas to link cells together in Excel?

Formulas enable dynamic updating.

What is the purpose of XBRL?

to facilitate dissemination and use of financial data

NOT to:streamline the filing of documents with the SEC", The process of filing XBRL documents can be a significant burden.

What is the correct structure for SUMPRODUCT functions in Excel?

=SUMPRODUCT(range 1, range 2, range 3)

Ex) =SUMPRODUCT(C8:C17, D8:D17)

What is the correct structure for SUMIFS functions in Excel?

=Sumifs(sum_range, criteria_range1, criteria, criteria range 2, criteria 2, criteria range 3, criteria 3)

You wish to project the total market growth for BIZZ0 based on a four-year moving average. The market growth is estimated to be 6.5 percent, 7.3 percent, 7.0 percent, and 5.1 percent in 2017, 2018, 2019, and 2020, respectively. What is the projected market growth for 2021?

6.5 percent

(6.5+7.3+7.0+5.1)/4 = 6.5

The cash flow for accounts payable was $1,024 in 2019. If a CAGR of 4.5 percent is applied, what is the projection for 2021?

1118. Exactly. The annual growth rate is compounded twice over two years.

What is the correct structure for PV functions in Excel?

=Pv (rate,nper,pmt, [fv], [type])

What is the correct structure for Iferror functions in Excel?

Iferror= (value,value_if_error)

historicals

actuals - actuals

plan growth

plan - actual (from last yr)

variance to plan

actual - plan