Practice Test GeeksCES - Certified Excel Specialists Practice Test
← All CES Flashcard Decks

Financial Functions & Modeling Flashcards

7 cards from real CES practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Financial Functions & Modeling flashcards as text

  1. How does the XNPV function differ from the standard NPV function?

    Answer: XNPV handles cash flows that occur at irregular time intervals

    XNPV allows cash flows to occur at irregular intervals by requiring specific dates for each cash flow, unlike NPV which assumes equally spaced periods.

  2. Which Excel function calculates straight-line depreciation of an asset for one period?

    Answer: SLN

    SLN calculates the straight-line depreciation of an asset for one period, spreading the cost evenly over the asset's useful life.

  3. What does the RATE function calculate in Excel?

    Answer: The interest rate per period of an annuity

    RATE calculates the interest rate per period of an annuity when given the number of periods, payment amount, and present value.

  4. Which Excel function calculates the Modified Internal Rate of Return?

    Answer: MIRR

    MIRR (Modified Internal Rate of Return) accounts for both the cost of investment and the interest rate earned on reinvested cash flows, correcting a key flaw in standard IRR.

  5. What is the purpose of the IPMT function in Excel?

    Answer: Calculate the interest portion of a specific loan payment

    IPMT returns the interest payment for a given period of a loan, allowing you to see exactly how much of each payment goes toward interest.

  6. Which Excel function calculates the cumulative interest paid on a loan between two specified periods?

    Answer: CUMIPMT

    CUMIPMT returns the cumulative interest paid on a loan between a specified start and end period, useful for tax deductions and accounting reports.

  7. Which Excel function calculates asset depreciation using the fixed-declining balance method?

    Answer: DB

    DB calculates the depreciation of an asset for a specified period using the fixed-declining balance method, which front-loads depreciation in early years.