Question 1

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 must specify how the table is structured and which cells in the input section of the worksheet relate to the table's values. The table will use these values to calculate the corresponding results. Therefore, the correct answer is A) values. B) formula, C) formatting, and D) file size are not relevant to structuring the table.

Question 2

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 intersection of the two input variables is where the formula's output should be located. This allows for easy comparison and analysis of the data. It also creates a clear visual representation of how changing one input variable affects the output.

Question 3

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 is typically based on values and formulas in a worksheet. Therefore, it must appear on the same worksheet that contains this data. Choices B, C and D are not appropriate because they do not accurately reflect the relationship between a data table and the underlying worksheet.

Question 4

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 the resulting output. In this case, you can input different interest rates and loan terms and see how it affects the loan payment. A one-variable data table only allows you to vary one factor while keeping the other constant, and a multi-variable data table involves more than two factors. An output data table summarizes the results of a calculation.

Question 5

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, we can vary the values of two input variables, and the results for one output value are shown at each combination of the input values. Therefore, the answer is one (A) output value.

Question 6

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 term "sensitivity analysis" refers to the process of examining how changes in certain inputs or assumptions impact the results of a financial model or analysis. By manipulating different variables and assumptions, analysts can gain a better understanding of the risks and uncertainties associated with a given project or investment opportunity. Thus, choice (A) is the best answer. Choices (B), (C), and (D) are not accurate descriptions of this type of analysis.

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

A one-variable data table is used to see how changes in one variable, such as interest rates, affect another variable, like loan payments.

Question 8

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 9

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 in Excel allows you to observe how changes in one input value affect one or more calculated results, hence the name "one-variable".

Question 10

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 their income tax expense on their financial statements, which may differ from the amount of income tax actually paid due to various factors, such as tax exemptions, deferred taxes, or tax credits. Private, large, and small companies may also have differences between their income tax expense and the actual amount paid, but they do not have the same level of reporting requirements as publicly traded companies.

Question 11

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 12

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

The structure for a data table requires the creation of the input values that will be used to perform a what-if analysis. These values are the variables that can be changed to see different outcomes in the analysis. Once the input values are identified, the results that are desired in the data table can be indicated. Therefore, option A is the correct choice. Option B, C, and D are not relevant in this context.

Question 13

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 represents the cells that will be used to complete the data table. It should include the headings and data for the rows and columns that the table will contain.

Question 14

____ 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 are used to determine the profitability of sales alternatives and performing break-even analysis. It represents the difference between the unit selling price and variable costs per unit. By analyzing the contribution margin, a company can determine which products or services they should focus on to maximize their profits.

Question 15

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 rate of tax paid on an additional dollar of income, and therefore the most appropriate for what-if analysis as it provides insight into the impact of changes in income or expenses on the company's tax liability. Projected, relative, or absolute tax rates may not reflect the actual tax implications of changes in income or expenses.

Question 16

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 one result cell, which displays the output based on the input values in the two input cells.

Question 17

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 18

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 19

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

Creating a data table in Excel involves 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. Both steps are equally important in ensuring that the data table functions correctly and displays the desired results.

Question 20

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

The company could use either GAAP-based rules or tax-basis rules to compute the effects of income tax expense on their analyses. Both methods are valid and commonly used in accounting. The choice of method would depend on the specific circumstances and objectives of the analysis.

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

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 ____.

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

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

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

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?"

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

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

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

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

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.

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

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

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

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

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.

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

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 ____.