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HBX Core Final Exam 2024 Quizzes & Ans!!
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HBX Core Final Exam 2024 Quizzes & Ans!!
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HBX Core Final Exam 2024 Quizzes & Ans!!Net Present Value (correct answer) Is a calculation of the present
values of all the cash inflows and outflows of a project or investment.
Excel formula =NPV(E4,B3:B12)+B2
Remember,for NPV you have to manually add the negative outflow from
time zero related to the initial investment.
Asset/Expense Accounts (correct answer) Asset and expense
accounts increase with debit and decrease with credit.
Income Statement (correct answer) Shows a company's financial
performance, because it shows the accumulation of all nominal
accounts over a period of time.
Gross Profit (correct answer) Sales Revenue minus COGS.
Accounts Payable Turnover (correct answer) Credit
Purchases/Average Accounts Payable Balance.
,Internal Rate of Return (IRR) (correct answer) The discount rate
that sets the net present value (NPV) of a project equal to zero. The IRR
allows us to find the percentage rate that would be earned for a given
set of cash flows.
Gross Profit Margin Calculation (correct answer) Gross
Profit/Revenue =Gross Profit Margin
Leverage Ratio Calculation (correct answer) Average Total
Assets/Average Equity.
Suggested Formula =Average (B11,D5)/Average (Sum(B16:B18),D8).
Present Value Calculation (correct answer) It is calculated by
multiplying the annual payment by the present value of an annuity
factor.
$18,000*6.71008=$120,781
Return on Equity (ROE) (correct answer) The return that a
business generates during a period on equity invested in the business
by the owners of the business.
Measured in DuPont Framework.
, Return on Investment (ROI) (correct answer) The return or profit
received as a result of investing funds.
Not measured by the DuPont Framework.
Cash Conversion Cycle (CCC) (correct answer) The number of days
between when a company pays for inventory purchases and when a
company collects from customers.
Not measured by the DuPont Framework.
Interest Coverage Ratio (correct answer) The number of times a
company can cover its interest expense only using its earnings before
interest and tax.
Not part of the DuPont Framework.
Deferred Tax Asset (correct answer) Arises when taxable income
exceeds Income Before Taxes due to a temporary timing difference.
When a deferred Tax Asset arises it means a company is recognizing Tax
Expense now on an amount of income that will be reflected in the
financial records later.
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