Questions for State Exams
Questions for Final Exam in Vocation Retraining Program “Financial Manager”
Vocational Retraining Program “Financial Manager”
QUESTIONS FOR PREPARATION FOR FINAL QUALIFICATION EXAM
1. Cash Flow Statement in IFRS. Methods of preparation. Interpretation of the statement’s indices for
analysis of the company’s cash flow.
2. Financial, management and tax accounting – similarities and differences.
3. Recognition of income and expenses in IFRS.
4. General approaches to preparation of Income Statement in IFRS.
5. Peculiarities of IFRS application by Russian companies (may be shown using the example of your company).
6. Consolidated financial reporting – principles of IFRS preparation.
7. Classification of costs in managerial accounting.
8. Disadvantages of concentration method of indirect cost accounting. Selecting methods of indirect
cost distribution at output cost determination depending on the strategy.
9. Methods of direct cost accounting. Ambiguity of direct cost accounting and work-in-progress.
10. Methods of managerial accounting. Classic and nonconventional accounting items and their indices.
Nonconventional accounting tasks: accounting of package inputs in the process method of direct cost accounting,
accounting of costs for by-products.
11. Financial responsibility centers and their indices. Controllable, partially controllable
And non-controllable costs of subdivisions and FRC.
12. Accounting by direct-costing method; difference from accounting of full costs and application in decision-making.
Problem variable costs calculation.
13. Decision-making on the basis of managerial accounting data. Relevant and non-relevant expenses. Using economic (indirect) costs in managerial accounting.
14. Interaction of management accounting, balanced system of indices, budgeting and cost management.
15. Standard costing: objectives, instruments and examples.
16. АВС-costing and other functional methods of costs accounting. Cost management.
17. Technology of managerial accounting and reporting. Development of accounting management policy.
18. Financial reporting information – qualitative characteristics, users, scope.
19. Evaluation of financial reporting elements. Relation of evaluation methods with information needs of users.
20. Time value of money. Compound interest method. Discounting method. Discounting rate.
21. Types of investment decisions. Main criteria for investment decision-making.
22. Analytical financial information: scope, structure, interpretation methods.
23. Category of cash flow and spheres of its application in finance. Classification of cash flows.
24. Financial coefficients, classification and functions. Main groups of coefficients.
25. Methodological approaches to organization of financial analysis of the company. Sources of data for financial analysis. Information restrictions and problems of data availability and reliability. Operational and total profitability of the company.
26. Assessment and analysis of business, financial and credit risks.
27. Financial activity evaluation. Evaluation criteria and earnings ratio. Cost/ benefit analysis and analysis logics. Key factors of profitability growth.
28. Liquidity analysis and evaluation using traditional and non-traditional methods.
29. Concept of stable growth of the company and financial strategies. SGR model.
30. Business plan goal and purpose. Basic elements of financial part of a business plan.
31. Budgeting. Budget categories. Development scheme of the consolidated budget. Organizational prerequisites of budgeting.
32. Working capital management: methods of inventory optimization; trade credit policy and methods of receivables amortization; payables turnover.
33. Appraisal of shares value and appraisal of return on equity.
34. Corporate bonds. Classification. Ratings. Issue stimulation.
35. Appraisal of yield to maturity.
36. Appraisal of bond value.
37. Classification of shares. Common and preferred shares.
38. Markets and instruments of forward and futures contracts.
39. Options and their characteristics. Options market.
40. Swaps and their kinds. Application methods.
41. Earning power and risks of international investments. Securities and exchange risks. International diversification. Risk hedging using Russian financial instruments.
42. Strategic targets of using derivative financial instruments in operational, financial and investment activity of corporations. Risk hedging using derivative financial instruments.
43. Organization of exchange and over-the-counter trading. Forwards and futures: Variety. Pricing. Positions of participants and calculations.
44. Сost-of-Сarry Мodel. Commodity markets and production activity hedging.
45. Investment and financial decisions. Risk and profitability.
46. Profitability. Basic profitability kinds. Expected return. Concept and measures of investment risk.
47. Mean-variance analysis. Portfolio at risk. Efficient frontier and selection of optimal portfolio.
48. Capital market theory. Efficiency of market portfolio. Capital market line (CML).
49. Systematic and non-systematic risks of a separate security and investment portfolio.
50. Capital Asset Pricing Model (САРМ). Securities market line (SML). Application of САРМ.
51. Criticism of САРМ (criticism of Roll). Concept of arbitrage pricing theory.
52. Multi-factor model. Sensitivity to factors as the measure of factor risks.
53. Value at risk (VaR).
54. Parametric normal model of calculation VaR.
55. General scheme of investment project valuation.
56. Valuation of project sensitivity as a method of project risk assessment.
57. Scenario analysis of the project and its risks.
58. VaR of the project and its valuation.
59. Investment and financial decisions. Valuation principles. Cash flow principle. Principle “with a project – without a project”.
60. Project budget: methodological basics and preparation technology.
61. Simple criteria of investment decisions valuation: return on capital employed (ROCE) and payback period (time).
62. Net present value and internal rate of return: comparative analysis
63. Equivalent annual annuity and profitability index. Concept of capital rationing. Comparison of the projects with different life cycles.
64. Required profitability level for free cash flow (cash flow from assets) and residual cash flow.
65. Types of investment project financing. Project financing and direct financing of corporation.
66. Leasing advantages and disadvantages. Leasing and acquisition.
67. Valuation models applied in VBM. Advantages and disadvantages of valuation models on the basis of residual income.
68. Basic concepts, definitions and assumptions for business appraisal. Value and cost.
69. DCF model. Basic models of DCF valuation, conditions for their application.
70. Basic approaches and evaluation formulas of terminal corporate value. Problems and typical errors of TV evaluation.
71. Costing of company capital. Impact of capital structure on corporate values.
72. Market approach to business appraisal: applied methods, comparative analysis, application of valuation multipliers, final corrections.
73. Asset valuation method. General scheme of valuation using NAV. Goodwill valuation.
74. Corporate values growth as an integral index of activity. Key drivers of corporate value, their modalities.
75. Key financial drivers of corporate value: analysis and management.
76. Target function of management: value growth for shareholders or satisfaction of stakeholders’ expectations?
77. Targets and motives of mergers and acquisitions. Appraisal of a special purpose company and merging conditions.
78. Analysis of EPS changing due to M&A deal.
79. Targets of the balanced scorecard system development. Financial prospects. Examples of targets and scores.
80. Principles and experience of the balanced scorecard system development.
81. Structural design of the balanced scorecard system.
82. Principal of value maximization. Its role and place in corporate management.
Questions for State Exams