Question 1

A two-variable data table has two input cells and ____ result cell(s).
A) one
B) two
C) variable
D) random

Accepted Answer

A two-variable data table has two input cells and one result cell, which calculates the values based on the input variables and the formula used in the table.

Question 2

A one-variable data table allows you to compare results calculated from changes to ____ input value(s).
A) only one
B) one or more
C) one or two
D) two or more

Accepted Answer

A one-variable data table allows you to compare results calculated from changes to only one input value.

Question 3

Many companies decide to use the company's ____ tax rate in their what-if analysis.
A) marginal
B) projected
C) relative
D) absolute

Accepted Answer

The marginal tax rate is the tax rate that will be applied to the next dollar of income earned. It is important for companies to use this rate in their what-if analysis because it represents the tax impact of any potential changes in income, such as a new investment or change in business strategy. This allows companies to see how their decisions will affect their tax liability and make more informed decisions.

Question 4

To conduct a ____ analysis, you can ask, "How would the break-even point and profitability estimates change if an estimate about one or more other assumptions changes?"
A) sensitivity
B) variable
C) systematic
D) routine

Accepted Answer

The type of analysis being described is a sensitivity analysis, which examines how changes in assumptions or variables may impact the overall outcome or results.

Question 5

To open the Data Table dialog box, click the DATA tab on the ribbon, click the ____ Analysis button in the Data Tools group, and then click the Data Table command.
A) What-If
B) Sensitivity
C) Data
D) Data Table

Accepted Answer

The correct answer is A) What-If. To open the Data Table dialog box, you click the DATA tab on the ribbon, then click the What-If Analysis button in the Data Tools group, and finally select the Data Table command.

Question 6

Excel can be used to create two types of data tables: one-variable data tables and ____ data tables.
A) multi-variable
B) two-variable
C) input
D) output

Accepted Answer

Excel supports the creation of one-variable and two-variable data tables, allowing users to perform what-if analysis by substituting a series of possible values for one or two variables, respectively.

Question 7

Use a(n) ____ data table to see how different interest rates affect a loan payment.
A) one-variable
B) two-variable
C) multi-variable
D) input

Accepted Answer

The answer of Use a(n) ____ data table to see...

Question 8

Use a(n) ____ data table to see how two factors-for example, different interest rates and loan terms-affect a loan payment.
A) one-variable
B) two-variable
C) multi-variable
D) output

Accepted Answer

A two-variable data table allows you to input different values for two factors and see how the outcome (in this case, a loan payment) changes based on those values. A one-variable data table would only show how changes in one factor affect the outcome, while a multi-variable data table would involve more than two factors. An output table would display the results of a specific calculation, but not provide a way to input different values for multiple factors.

Question 9

Creating the structure for a data table involves creating the set of ____ you want to use in your what-if analysis, and then indicating the results you want to see in the data table.
A) input values
B) data values
C) combination values
D) lookup values

Accepted Answer

Input values are the values that will be used in the data table to perform a what-if analysis. They are the values that will be changed to see how they affect the results. Therefore, they need to be included in the structure of the data table. The other options (B, C, and D) are not necessary for creating the structure of a data table.

Question 10

As with one-variable data tables, you must specify how a two-variable data table is structured and which cells in the worksheet's input section relate to the table's ____.
A) values
B) formula
C) formatting
D) file size

Accepted Answer

In a two-variable data table, you are testing how changes in two different variables affect the outcome of a formula or set of formulas. You must specify which cells in the input section of the worksheet relate to the table's values, meaning the actual values that will be used to test the formula. The other options listed (formula, formatting, file size) are not relevant to setting up a two-variable data table.

Question 11

Creating a data table in Excel involves the very important step(s) of ____.
A) setting up the structure for the data table
B) instructing Excel on how the data table's structure relates to the input section of the worksheet
C) both a and b
D) neither a nor b

Accepted Answer

Both setting up the structure for the data table and instructing Excel on how the data table's structure relates to the input section of the worksheet are important steps in creating a data table in Excel. These steps ensure that the data is organized correctly and that the table can be easily updated and manipulated.

Question 12

If a company decides to use income tax expense as a factor in analyses, a method it could use to compute the effects is ____.
A) rules based on Generally Accepted Accounting Principles (GAAP)
B) tax-basis rules
C) either a or b
D) neither a nor b

Accepted Answer

A company could use rules based on GAAP or tax-basis rules to compute the effects of income tax expense. GAAP provides guidance on how to calculate income taxes and report them in financial statements, while tax-basis rules are the accounting rules used for tax purposes. Both methods could be used by a company to analyze the effects of income tax expense.

Question 13

To specify which input cell in the worksheet relates to the values in the data table, open the ____ dialog box.
A) Data Table
B) Input Cell
C) Worksheet
D) What-if

Accepted Answer

The Data Table dialog box is used to specify which input cell in the worksheet relates to the values in the data table.

Question 14

Income tax expense on income statements for ____ companies and the amount of income tax actually paid are two different numbers.
A) publicly traded
B) private
C) large
D) small

Accepted Answer

Publicly traded companies are required to disclose income tax expense on their income statements, even if they haven't paid the full amount yet. This is because income tax expense is based on the company's income and applicable tax laws, while the amount of income tax actually paid may be affected by various factors such as available tax credits and timing differences in payments. Private, large, and small companies may also have differences between income tax expense and actual payments, but the question specifically asks for the best choice, which is A.

Question 15

____ margins are widely used in analysis, especially when evaluating the profitability of sales alternatives and performing break-even analysis.
A) Lookup
B) Contribution
C) Data
D) Source

Accepted Answer

Contribution margins refer to the amount of revenue that remains after the variable costs associated with a product or service have been subtracted, and are therefore useful in determining how much revenue is left over to cover fixed costs and provide profit. This information is key when performing break-even analyses or evaluating the profitability of various sales alternatives. Lookup, data, and source margins are not commonly used terms in financial analysis.

Question 16

A contribution margin is calculated by subtracting variable expenses from sales, and represents the amount of revenue that contributes to covering the ____ expenses of a company.
A) variable
B) fixed
C) tax
D) accounts payable

Accepted Answer

Contribution margin represents the amount of revenue that contributes to covering the fixed expenses of a company. Variable expenses are deducted from sales to determine the contribution margin, and any remaining amount after fixed expenses are covered represents the company's net profit. Tax and accounts payable are not factors in calculating the contribution margin.

Question 17

In preparation for executing the command to complete the data table, first select the ____ that will constitute the completed data table.
A) range
B) output area
C) input area
D) chart area

Accepted Answer

The range of cells that contain the data to be analyzed and completed is the input area. The output area is the location where the completed table or analysis will be displayed. The chart area is where visual representations of the data will be presented. Therefore, the best choice would be A, as it refers to selecting the range of cells that contain the data to be completed.

Question 18

You must structure a two-variable data table so that the input values are perpendicular to each other, and so that the table's output formula is located ____ the two sets of input variables.
A) on top of
B) at the intersection of
C) under
D) next to

Accepted Answer

The output formula should be located at the intersection of the two sets of input variables, creating a perpendicular structure for the data table. This allows for easy interpretation and analysis of the data.

Question 19

In a two-variable data table, you can vary the values of two input variables, and show the results for ____ output value(s).
A) one
B) two
C) one or two
D) two or more

Accepted Answer

In a two-variable data table, you can vary the values of two input variables and show the results for one output value.

Question 20

A data table depends on values and formulas used in a worksheet, and must appear ____ that contains this data.
A) on the same worksheet
B) in the same file
C) in the same table
D) in the same row

Accepted Answer

A data table depends on values and formulas used in a worksheet, and must appear on the same worksheet that contains this data. Tables can't be created outside the worksheet where the data exists.

Quiz 8: Using Data Tables and Excel Scenarios for What If Analysis

A two-variable data table has two input cells and ____ result cell(s) .

A one-variable data table allows you to compare results calculated from changes to ____ input value(s) .

Many companies decide to use the company's ____ tax rate in their what-if analysis.

To conduct a ____ analysis, you can ask, "How would the break-even point and profitability estimates change if an estimate about one or more other assumptions changes?"

To open the Data Table dialog box, click the DATA tab on the ribbon, click the ____ Analysis button in the Data Tools group, and then click the Data Table command.

Excel can be used to create two types of data tables: one-variable data tables and ____ data tables.

Use a(n) ____ data table to see how different interest rates affect a loan payment.

Use a(n) ____ data table to see how two factors-for example, different interest rates and loan terms-affect a loan payment.

Creating the structure for a data table involves creating the set of ____ you want to use in your what-if analysis, and then indicating the results you want to see in the data table.

As with one-variable data tables, you must specify how a two-variable data table is structured and which cells in the worksheet's input section relate to the table's ____.

Creating a data table in Excel involves the very important step(s) of ____.

If a company decides to use income tax expense as a factor in analyses, a method it could use to compute the effects is ____.

To specify which input cell in the worksheet relates to the values in the data table, open the ____ dialog box.

Income tax expense on income statements for ____ companies and the amount of income tax actually paid are two different numbers.

____ margins are widely used in analysis, especially when evaluating the profitability of sales alternatives and performing break-even analysis.

A contribution margin is calculated by subtracting variable expenses from sales, and represents the amount of revenue that contributes to covering the ____ expenses of a company.

In preparation for executing the command to complete the data table, first select the ____ that will constitute the completed data table.

You must structure a two-variable data table so that the input values are perpendicular to each other, and so that the table's output formula is located ____ the two sets of input variables.

In a two-variable data table, you can vary the values of two input variables, and show the results for ____ output value(s) .

A data table depends on values and formulas used in a worksheet, and must appear ____ that contains this data.