Sample Systems Questions
Part 1
1.Structuring a spreadsheet into separate parts:
a.clarifies the assumptions of the model.
b.improves the efficiency of the model.
c.increases the potential for model errors.
d.makes model documentation unnecessary.
2.On the basis of a spreadsheet model analyzing cash flows and predicted earnings, a company was about to acquire several other companies. Before completing the acquisitions, however, a serious logic error was discovered in the model. The corrected model showed the acquisitions were not as attractive as before. The most likely way to prevent such errors in the future is for the company to:
a.use cell references for multiple references to a data value.
b.require consistency of units across model calculations.
c.protect all cell entries except those for data entry.
d.verify model logic by hand for test cases.
3.If a cell contains a text or label instead of a numeric value, the result of a computation involving that cell is:
a.always correct since the text or label displays the right number.
b.predictable but not always what was intended.
c.always smaller than the intended result.
d.always larger than the intended result.
4.Following a spreadsheet development life cycle is a good idea because it:
a.keeps inexperienced computer users from developing their own spreadsheet models.
b.decreases the number of formulas in spreadsheet models and thus improves their efficiency.
c.shortens the time period required to define and develop spreadsheet models.
d.increases the reliability, auditability, and modifiability of spreadsheet models.
5.Moving a range of cells:
a.leaves blank cells in the destination range.
b.leaves the original cells in the source range.
c.copies the source range to the destination range and leaves the source range intact.
d.copies the source cells to the destination range and leaves blank cells in the source range.
6.Techniques for minimizing spreadsheet data entry errors are:
a.making regular backups.
b.tracing model logic.
c.using crossfoot cells.
d.protecting formula cells.
7.An approach for minimizing spreadsheet user errors is to:
a.require verification of each data value.
b.make the spreadsheet recalculate automatically after each cell update.
c.use space efficiently by not having a separate data section.
d.use formulas to reference the contents of other cells.
8.The range in a spreadsheet @SUM function is not adjusted automatically when a row is added:
a.after the first line of the range.
b.in the middle of the range.
c.at the bottom of the range.
d.above the last line in the range.
9.After execution of a copy command, some of the cell references in formulas in the destination range are identical to the equivalent cell references in the source range. The most likely reason for this equality is that the:
a.cells were marked for absolute references.
b.cells were not marked for absolute references.
c.copy command inverted the order of the copied range.
d.copy command failed due to a memory parity error.
10.The merger and acquisition department of an investment banking firm uses large, complex spreadsheet models with many data values to analyze potential candidates for merger and acquisition for its clients. Analysts typically begin an analysis with the firm's standard model but usually add special features for each company. The best practice for increasing the likelihood of maintaining model integrity for each new application is:
a.test verification of each model with standard data.
b.modification and review by one analyst.
c.periodic backup and recovery procedures.
d.recalculation only upon specific command.