(Solved): 1b Financial modeling professionals are expected to perform many tasks. Which of the following ...

1b Financial modeling professionals are expected to perform many tasks.
Which of the following is not typically a task as part of the financial modeling process?

i. Setup for presentation and printing

ii. Smoothing data for management

iii. Reports for evaluating a business or investment

iv. Check model integrity

1c. Financial modeling professionals typically break their work down into modular steps for ease and transparency, before linking everything back to the three core financial statements.
Corkscrew schedules are primarily used to support calculations for which financial statement?

i. Cash Flow Statement

ii. Income Statement

iii. Balance Sheet

iv. Statement of Operations

1d. Financial modeling professionals typically break their work down into modular steps for ease and transparency, before linking everything back to the three core financial statements.
Which of the following is a true statement?
Select ALL that apply.

i. It doesn’t matter if a balance sheet balances because a decision will be made based on income statement data.

ii. You should ‘plug’ an unbalanced balance sheet.

iii. The Balance Sheet acts as a natural error detection system.

iv. We can set up multiple checks to see if there are errors in our financial model.

1e. Circularity in models
Many sophisticated models use circular calculations.
What is a required Excel setting that allows for circular calculations? Select the best option

i. Enable iterative calculations

ii. Use table names in formulas

iii. Enable Live Preview

iv. Automatic calculations

1f. Modeling a revolving line of credit is a crucial skill for an analyst. Additionally, it helps the analyst naturally balance a balance sheet. Which of the below are features of building a revolving line of credit into a financial model?
Select ALL that apply.

i. Does not result in a circular calculation

ii. Flexibility which can be used when necessary

iii. It’s a ‘lender of last resort’

iv. It can be borrowed, paid back and re-borrowed as needed

1g. Models as Decision-Making Tools
Ultimately, models are decision-making tools.
According to our materials, which selection below is likely the most important part of a financial model?

i.The circularity switch or toggle

ii. The main model itself

iii. Dashboard of key metrics and charts

iv. Corkscrew schedules

13 The Role of Financial Models Review Later Financial models are created for a specific purpose. Which of the following are financial models used? Select ALL that apply. To justify an outcome Decision making Matching costs with revenues Communication