Easy Investment Banking Practice Questions

191 free easy-difficulty Investment Banking questions, drawn live from KomFi's calibrated bank. Build the foundation first: these test the core mechanics every harder question assumes.

1. SaaSCo recognizes 25 million of stock-based compensation (SB… — How does this appear on the cash flow statemen
2. Under modern lease accounting (ASC 842), what is the primary impact of an operating lease on the balance sheet
3. On the Cash Flow Statement, how is SBC treated in the Operating section?
4. If Zenith Logistics purchases $50,000 of equipment using cash, which of the following best describes the immed
5. If it uses $50 million in cash to buy $50 million in inventory, what is the impact on the Balance Sheet?
6. Which of the following correctly describes the impact on the financial statements?
7. What is the impact on CFO?
8. A customer pays 300 in cash to settle an outstanding balance… — How does this collection affect the balance sh
9. How does an increase in depreciation affect EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortiz
10. If a company pays a $1,500 cash dividend to its shareholders, how does this affect the balance sheet identity?
11. What is the primary difference between Cash Accounting and Accrual Accounting regarding Revenue Recognition?
12. What is the primary purpose of a 'Debt Schedule' in a financial model?
13. When a company generates $10,000 in Net Income and does not pay any dividends, what is the direct impact on th
14. Which of the following describes the impact of an increase in Accounts Receivable (AR) on the Cash Flow Statem
15. Which of the following would be a 'Source of Cash' in the CFO build?
16. Which specific line item on the Balance Sheet serves as the primary cumulative link for Net Income from the In
17. What happens to the 'Lease Liability' on the Balance Sheet at the very end of a 10-year finance lease term, as
18. In a DCF analysis, what does the 'Mid-Year Convention' account for?
19. Under U.S. GAAP, which of the following items is NOT included in the calculation of EBITDA?
20. What is the impact on net income and cash flow from operations?
21. What is its Enterprise Value?
22. A firm has $10.0 million options outstanding with a strike p… — What is the impact of these options on the Ful
23. When constructing the bridge from Equity Value to Enterprise Value for a company like Orion Tech, why is cash
24. A company has a $100M unfunded pension liability. How should this typically be treated in an Enterprise Value
25. Company X has $10M stock options with a strike price of $45.… — How many net dilutive shares from these option
26. For a company with negative Shareholders' Equity on its balance sheet, which of the following is true regardin
27. In the 'Bridge' from Equity Value to Enterprise Value, why is Debt added?
28. In the context of the EV/EBITDA multiple, how does adding Noncontrolling Interest (NCI) to the numerator achie
29. The P/E ratio is most often used for which type of companies?
30. When bridging from Equity Value to Enterprise Value, how should the company's Cash and Cash Equivalents be tre

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