Medium Investment Banking Practice Questions

432 free medium-difficulty Investment Banking questions, drawn live from KomFi's calibrated bank. The exam backbone: the difficulty band where most scoring happens.

1. A company recognizes $100.0 million in Deferred Revenue on i… — How does this impact the current year's EBITDA
2. A company switching from LIFO to FIFO inventory accounting during a period of rising prices will report which
3. Assuming a 0% tax shield (non-deductible), what is the impact on the year-end Balance Sheet?
4. Which item is a non-cash expense that is recorded on the Income Statement but added back on the Cash Flow Stat
5. Which of the following would cause a company to have a Deferred Tax Liability (DTL)?
6. Which of the following describes the impact of a $50 million increase in 'Deferred Revenue' on the three finan
7. If a company has a negative Shareholders' Equity balance, which of the following is the most likely cause?
8. Vanguard Corp reports $100M in Net Income. During the period, it recognizes a $100M depreciation expense. If t
9. In February, what is the impact on the Income Statement and the Balance Sheet?
10. Under ASC 842, how does an Operating Lease affect the Income Statement compared to a Finance (Capital) Lease?
11. If the company uses 20 of its cash to pay off 20 of its debt, how do the Three Statements change?
12. If a company uses LIFO (Last-In, First-Out) accounting during a period of rising prices (inflation), how will
13. A company decides to write down its inventory by $50M. Assuming a 25% corporate tax rate, what is the impact o
14. If the tax rate is 40%, what is the Deferred Tax Liability (DTL) created in Year 1?
15. UrbanPack sells 50 backpacks for 120 each in cash. The cost… — At a 40% tax rate, what is the net change in ca
16. UrbanPack undergoes an inventory write-down of $50M. If the tax rate is 25%, what is the net impact on the fir
17. When an acquirer writes up a target's tangible assets (e.g., PP&E) in a stock-for-stock acquisition, what is c
18. An analyst is calculating 'Days Sales Outstanding' (DSO). If Revenue is $1,000M and Accounts Receivable is $10
19. How is the 'Amortization of Debt Issuance Costs' treated in the CFO section?
20. In the CFO reconciliation, what does an increase in a Deferred Tax Liability (DTL) signify?
21. What does a 'Deferred Tax Liability' (DTL) represent on the Balance Sheet?
22. What happens to the three financial statements when a company records $10M in Stock-Based Compensation (SBC)?
23. When a company buys inventory using cash, what is the immediate impact on the total Cash Flow from Operations
24. Which item is added back to Net Income because it represents an expense that will be paid in the future, not t
25. A customer pays $2,400 for a 2-year subscription. After 18 months, how much of this transaction is still sitti
26. If the analyst assumes Accounts Receivable increases by100.0 each year, how much does this specifically reduce
27. If the exit Enterprise Value is $1.0 billion, how does the PIK debt affect the proceeds to the sponsor?
28. What is the combined impact on CFO?
29. If a company decides to purchase an asset using 100% debt rather than leasing it via an operating lease, which
30. If a company grants Restricted Stock Units (RSUs) instead of stock options, how does this change the calculati

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