Why You Should Use This Financial Modeling Test

The Financial and Excel Modeling Online test helps recruiters and hiring managers to identify qualified candidates from a pool of resumes, and helps in taking objective hiring decisions. It reduces the administrative overhead of interviewing too many candidates and saves expensive engineering time by filtering out unqualified candidates. The Adaface Financial and Excel Modeling test screens candidates for the typical skills recruiters look for in a Financial Analyst: Expertise in performing asset and stock valuation Solid understanding of accounting fundamentals Expertise in advanced MS Excel skills In-depth understanding of financial models for variance analysis and business forecasting Ability to use multiple sources for data compilation Basic understanding of creating performance reports The insights generated from this assessment can be used by recruiters and hiring managers to identify the best candidates for the role. Anti-cheating features enable you to be comfortable with conducting assessments online. The Financial and Excel Modeling test is ideal for helping recruiters identify which candidates have the technical skills to do well on the job.

Financial & Excel Modeling Test

About the test:

The financial modeling test assesses a candidate's understanding of fundamental financial modeling concepts like historical ratios, income statement, working capital, depreciation schedule, amortization schedule, shareholder equity schedule, stock options, cash flow statements, time value of money, capital asset pricing model and asset valuation and their ability to create and maintain financial models using Excel.

Covered skills:

cash flow statement
historical ratios
Net present value
Financial Analysis
Stock Valuation
Rate of return
Excel Macros

depreciation schedule
Time Value of money
Internal rate of return
Asset Valuation
Risk And Return
Capital Asset Pricing Model

See all covered skills

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9 reasons why

Adaface Financial & Excel Modeling Test is the most accurate way to shortlist Financial Analysts

Reason #1

Tests for on-the-job skills

The Financial and Excel Modeling Online test helps recruiters and hiring managers to identify qualified candidates from a pool of resumes, and helps in taking objective hiring decisions. It reduces the administrative overhead of interviewing too many candidates and saves expensive engineering time by filtering out unqualified candidates.

The Adaface Financial and Excel Modeling test screens candidates for the typical skills recruiters look for in a Financial Analyst:

Expertise in performing asset and stock valuation
Solid understanding of accounting fundamentals
Expertise in advanced MS Excel skills
In-depth understanding of financial models for variance analysis and business forecasting
Ability to use multiple sources for data compilation
Basic understanding of creating performance reports

The insights generated from this assessment can be used by recruiters and hiring managers to identify the best candidates for the role. Anti-cheating features enable you to be comfortable with conducting assessments online. The Financial and Excel Modeling test is ideal for helping recruiters identify which candidates have the technical skills to do well on the job.

Reason #2

No trick questions

Traditional assessment tools use trick questions and puzzles for the screening, which creates a lot of frustration among candidates about having to go through irrelevant screening assessments.

The main reason we started Adaface is that traditional pre-employment assessment platforms are not a fair way for companies to evaluate candidates. At Adaface, our mission is to help companies find great candidates by assessing on-the-job skills required for a role.

Why we started Adaface ->

Reason #3

Non-googleable questions

We have a very high focus on the quality of questions that test for on-the-job skills. Every question is non-googleable and we have a very high bar for the level of subject matter experts we onboard to create these questions. We have crawlers to check if any of the questions are leaked online. If/ when a question gets leaked, we get an alert. We change the question for you & let you know.

These are just a small sample from our library of 10,000+ questions. The actual questions on this Financial & Excel Modeling Test will be non-googleable.

🧐 Question
Medium All stock acquisition	Solve
Deemak Inc. is acquiring Chopper in an all stock deal. Deemak Inc. has 1000 shares, an EPS of $3.25 and P/E ratio of 11. Chopper has 300 shares, an EPS of $3.75 and P/E ratio of 13. How would you describe this deal for Deemak?
Medium Compound Revenue Growth Rate Projections	Solve
Given the following information for the company NotOpenAI: What is the projected Year 6 Revenue based on the historical compound annual growth rate (CAGR)?
Medium Depreciation on new Capex	Solve
Our financial intern deleted the entries for the Depreciation from new CapEx by mistake. Can you help them calculate the total depreciation on new CapEx in Year 3?
Medium Projected Current Ratio Projections	Solve
Given the following information for the company NotOpenAI: What is the projected Year 6 Current Ratio based on the historical average Current Ratio?
Medium Earnings Per Share	Solve
Consider the following financial data for 3 companies (in millions) for the year 2022: Which company has the highest Earnings Per Share (EPS) if each company has 50 million outstanding shares?
Medium Net cash receipt on issued bonds	Solve
Gajni Inc. issued 2000 $100 9% bonds on May 1 (year 1). These bonds are issued at 103 plus accrued interest. The bonds are dated Jan 1 (year 1) and mature on Jan 1 (year 5). Interest needs to be paid twice a year (Jan 1 and July 1). The cost of issuing the bonds, $5000 was paid by Gajni Inc. to the investment bank. What would be the net cash receipt realized by Gajni Inc. from the issuance of these bonds?
Medium Return on Capital Employed	Solve
Consider the following financial data for five companies for the year 2022: Which company has the highest Return on Capital Employed (ROCE)?
Easy Hedge risk using derivates	Solve
Phenomenal Pte. Ltd., a Singapore based company secured a new client in Germany for their SaaS business, and is expecting to receive a payment of EUR 1.3 million after 6 weeks. They want to be certain of the amount they receive and plan on using the derivates market to hedge the risk. What action would you recommend?
Medium Comprehensive income	Solve
ProCoder Inc. reported the following information on Dec 31st. If we ignore income tax, what should ProCoder report as comprehensive income as of Dec 31?
Medium Land Sale Balance Sheet	Solve
Here’s the balance sheet for SinkedIn Ltd as of December 31, 2022: SinkedIn Ltd acquires a smaller company for $100,000 cash. The acquisition adds $60,000 in goodwill and increases the long-term investments by $40,000. Here’s the new balance sheet created after these changes: Which of the following rows are erroneous rows in the balance sheet after the acquisition?
Medium Sell off long-term investment Balance Sheet	Solve
Review the following balance Sheet for Company Sinclair as of December 31, 2023 (in thousands of dollars) Suppose that Company Sinclair has a tax rate of 30%. What will be the company's new equity balance if the company sells all its long-term investments at their book value, pays off all its short-term debt, and distributes the remaining cash as a dividend to shareholders?
Medium MATCH INDEX LOOKUP	Solve
Some friends live in adjacent apartments in a building in Central Perk, New York. We want to write a function to search the apartment number by name. Which of the following functions should we use?
Medium Organization data Data transformation	Solve
We have two Excel files with organization data. One file has Organization ID and Organization Name fields, whereas the second file has Organization ID, Organization Name and Country fields. We wrote a query to retrieve the data from both files. Here’s a sample of the data retrieved: We want to ensure Organization ID field is unique. Which of the following is the ideal solution that ensures Organization ID field is unique while retaining Country data? A: Select the Organization ID and Country columns, and then click Keep Duplicates. B: Select the Organization ID and Country columns, and then click Remove Duplicates. C: Use Group BY function to group the rows by Organization ID. Specify output columns for Organization Name and Country using MAX operation. D: Select Organization ID column and then click Remove Duplicates. Then specify output columns for Country using MAX operation.
Medium Student scores Data formatting	Solve
Here’s a sample Excel data source: Here’s the expected data format: Which of the following is the correct way to transform the data from the query editor to achieve the result? A: Columns to Select: Student Only B: Columns to Select: Student and Student ID C: Columns to Select: Primary and Secondary D: Command to Use: Pivot Column E: Command to Use: Reverse Rows F: Command to Use: Unpivot Columns
Medium VLOOKUP blood donor	Solve
We are looking to find the contact number of the only blood donor with blood group O-. Which function should we use to look up the correct contact number? Here's the documentation for VLOOKUP: =VLOOKUP(lookup value, range containing the lookup value, the column number in the range containing the return value, Approximate match (TRUE) or Exact match (FALSE)). A: =VLOOKUP("O-", A1:E10, 3, TRUE) B: =VLOOKUP("O-", A1:E10, 3, FALSE) C: =VLOOKUP("O-", D1:D10, 4) D: =VLOOKUP("O-", D1:D10, 3) E: =VLOOKUP("O-", A1:E10, 4, TRUE) F: =VLOOKUP("O-", A1:E10, 4, FALSE) G: =VLOOKUP("Kane", A1:E10, 4)

	🧐 Question	🔧 Skill
	Medium All stock acquisition	2 mins Financial Modeling	Solve
Deemak Inc. is acquiring Chopper in an all stock deal. Deemak Inc. has 1000 shares, an EPS of $3.25 and P/E ratio of 11. Chopper has 300 shares, an EPS of $3.75 and P/E ratio of 13. How would you describe this deal for Deemak?
	Medium Compound Revenue Growth Rate Projections	3 mins Financial Modeling	Solve
Given the following information for the company NotOpenAI: What is the projected Year 6 Revenue based on the historical compound annual growth rate (CAGR)?
	Medium Depreciation on new Capex	3 mins Financial Modeling	Solve
Our financial intern deleted the entries for the Depreciation from new CapEx by mistake. Can you help them calculate the total depreciation on new CapEx in Year 3?
	Medium Projected Current Ratio Projections	3 mins Financial Modeling	Solve
Given the following information for the company NotOpenAI: What is the projected Year 6 Current Ratio based on the historical average Current Ratio?
	Medium Earnings Per Share	3 mins Finance	Solve
Consider the following financial data for 3 companies (in millions) for the year 2022: Which company has the highest Earnings Per Share (EPS) if each company has 50 million outstanding shares?
	Medium Net cash receipt on issued bonds	3 mins Finance	Solve
Gajni Inc. issued 2000 $100 9% bonds on May 1 (year 1). These bonds are issued at 103 plus accrued interest. The bonds are dated Jan 1 (year 1) and mature on Jan 1 (year 5). Interest needs to be paid twice a year (Jan 1 and July 1). The cost of issuing the bonds, $5000 was paid by Gajni Inc. to the investment bank. What would be the net cash receipt realized by Gajni Inc. from the issuance of these bonds?
	Medium Return on Capital Employed	3 mins Finance	Solve
Consider the following financial data for five companies for the year 2022: Which company has the highest Return on Capital Employed (ROCE)?
	Easy Hedge risk using derivates	2 mins Finance	Solve
Phenomenal Pte. Ltd., a Singapore based company secured a new client in Germany for their SaaS business, and is expecting to receive a payment of EUR 1.3 million after 6 weeks. They want to be certain of the amount they receive and plan on using the derivates market to hedge the risk. What action would you recommend?
	Medium Comprehensive income	2 mins Accounting	Solve
ProCoder Inc. reported the following information on Dec 31st. If we ignore income tax, what should ProCoder report as comprehensive income as of Dec 31?
	Medium Land Sale Balance Sheet	3 mins Accounting	Solve
Here’s the balance sheet for SinkedIn Ltd as of December 31, 2022: SinkedIn Ltd acquires a smaller company for $100,000 cash. The acquisition adds $60,000 in goodwill and increases the long-term investments by $40,000. Here’s the new balance sheet created after these changes: Which of the following rows are erroneous rows in the balance sheet after the acquisition?
	Medium Sell off long-term investment Balance Sheet	3 mins Accounting	Solve
Review the following balance Sheet for Company Sinclair as of December 31, 2023 (in thousands of dollars) Suppose that Company Sinclair has a tax rate of 30%. What will be the company's new equity balance if the company sells all its long-term investments at their book value, pays off all its short-term debt, and distributes the remaining cash as a dividend to shareholders?
	Medium MATCH INDEX LOOKUP	2 mins Excel	Solve
Some friends live in adjacent apartments in a building in Central Perk, New York. We want to write a function to search the apartment number by name. Which of the following functions should we use?
	Medium Organization data Data transformation	3 mins Excel	Solve
We have two Excel files with organization data. One file has Organization ID and Organization Name fields, whereas the second file has Organization ID, Organization Name and Country fields. We wrote a query to retrieve the data from both files. Here’s a sample of the data retrieved: We want to ensure Organization ID field is unique. Which of the following is the ideal solution that ensures Organization ID field is unique while retaining Country data? A: Select the Organization ID and Country columns, and then click Keep Duplicates. B: Select the Organization ID and Country columns, and then click Remove Duplicates. C: Use Group BY function to group the rows by Organization ID. Specify output columns for Organization Name and Country using MAX operation. D: Select Organization ID column and then click Remove Duplicates. Then specify output columns for Country using MAX operation.
	Medium Student scores Data formatting	2 mins Excel	Solve
Here’s a sample Excel data source: Here’s the expected data format: Which of the following is the correct way to transform the data from the query editor to achieve the result? A: Columns to Select: Student Only B: Columns to Select: Student and Student ID C: Columns to Select: Primary and Secondary D: Command to Use: Pivot Column E: Command to Use: Reverse Rows F: Command to Use: Unpivot Columns
	Medium VLOOKUP blood donor	2 mins Excel	Solve
We are looking to find the contact number of the only blood donor with blood group O-. Which function should we use to look up the correct contact number? Here's the documentation for VLOOKUP: =VLOOKUP(lookup value, range containing the lookup value, the column number in the range containing the return value, Approximate match (TRUE) or Exact match (FALSE)). A: =VLOOKUP("O-", A1:E10, 3, TRUE) B: =VLOOKUP("O-", A1:E10, 3, FALSE) C: =VLOOKUP("O-", D1:D10, 4) D: =VLOOKUP("O-", D1:D10, 3) E: =VLOOKUP("O-", A1:E10, 4, TRUE) F: =VLOOKUP("O-", A1:E10, 4, FALSE) G: =VLOOKUP("Kane", A1:E10, 4)

	🧐 Question	🔧 Skill	💪 Difficulty	⌛ Time
	All stock acquisition	Financial Modeling	Medium	2 mins	Solve
Deemak Inc. is acquiring Chopper in an all stock deal. Deemak Inc. has 1000 shares, an EPS of $3.25 and P/E ratio of 11. Chopper has 300 shares, an EPS of $3.75 and P/E ratio of 13. How would you describe this deal for Deemak?
	Compound Revenue Growth Rate Projections	Financial Modeling	Medium	3 mins	Solve
Given the following information for the company NotOpenAI: What is the projected Year 6 Revenue based on the historical compound annual growth rate (CAGR)?
	Depreciation on new Capex	Financial Modeling	Medium	3 mins	Solve
Our financial intern deleted the entries for the Depreciation from new CapEx by mistake. Can you help them calculate the total depreciation on new CapEx in Year 3?
	Projected Current Ratio Projections	Financial Modeling	Medium	3 mins	Solve
Given the following information for the company NotOpenAI: What is the projected Year 6 Current Ratio based on the historical average Current Ratio?
	Earnings Per Share	Finance	Medium	3 mins	Solve
Consider the following financial data for 3 companies (in millions) for the year 2022: Which company has the highest Earnings Per Share (EPS) if each company has 50 million outstanding shares?
	Net cash receipt on issued bonds	Finance	Medium	3 mins	Solve
Gajni Inc. issued 2000 $100 9% bonds on May 1 (year 1). These bonds are issued at 103 plus accrued interest. The bonds are dated Jan 1 (year 1) and mature on Jan 1 (year 5). Interest needs to be paid twice a year (Jan 1 and July 1). The cost of issuing the bonds, $5000 was paid by Gajni Inc. to the investment bank. What would be the net cash receipt realized by Gajni Inc. from the issuance of these bonds?
	Return on Capital Employed	Finance	Medium	3 mins	Solve
Consider the following financial data for five companies for the year 2022: Which company has the highest Return on Capital Employed (ROCE)?
	Hedge risk using derivates	Finance	Easy	2 mins	Solve
Phenomenal Pte. Ltd., a Singapore based company secured a new client in Germany for their SaaS business, and is expecting to receive a payment of EUR 1.3 million after 6 weeks. They want to be certain of the amount they receive and plan on using the derivates market to hedge the risk. What action would you recommend?
	Comprehensive income	Accounting	Medium	2 mins	Solve
ProCoder Inc. reported the following information on Dec 31st. If we ignore income tax, what should ProCoder report as comprehensive income as of Dec 31?
	Land Sale Balance Sheet	Accounting	Medium	3 mins	Solve
Here’s the balance sheet for SinkedIn Ltd as of December 31, 2022: SinkedIn Ltd acquires a smaller company for $100,000 cash. The acquisition adds $60,000 in goodwill and increases the long-term investments by $40,000. Here’s the new balance sheet created after these changes: Which of the following rows are erroneous rows in the balance sheet after the acquisition?
	Sell off long-term investment Balance Sheet	Accounting	Medium	3 mins	Solve
Review the following balance Sheet for Company Sinclair as of December 31, 2023 (in thousands of dollars) Suppose that Company Sinclair has a tax rate of 30%. What will be the company's new equity balance if the company sells all its long-term investments at their book value, pays off all its short-term debt, and distributes the remaining cash as a dividend to shareholders?
	MATCH INDEX LOOKUP	Excel	Medium	2 mins	Solve
Some friends live in adjacent apartments in a building in Central Perk, New York. We want to write a function to search the apartment number by name. Which of the following functions should we use?
	Organization data Data transformation	Excel	Medium	3 mins	Solve
We have two Excel files with organization data. One file has Organization ID and Organization Name fields, whereas the second file has Organization ID, Organization Name and Country fields. We wrote a query to retrieve the data from both files. Here’s a sample of the data retrieved: We want to ensure Organization ID field is unique. Which of the following is the ideal solution that ensures Organization ID field is unique while retaining Country data? A: Select the Organization ID and Country columns, and then click Keep Duplicates. B: Select the Organization ID and Country columns, and then click Remove Duplicates. C: Use Group BY function to group the rows by Organization ID. Specify output columns for Organization Name and Country using MAX operation. D: Select Organization ID column and then click Remove Duplicates. Then specify output columns for Country using MAX operation.
	Student scores Data formatting	Excel	Medium	2 mins	Solve
Here’s a sample Excel data source: Here’s the expected data format: Which of the following is the correct way to transform the data from the query editor to achieve the result? A: Columns to Select: Student Only B: Columns to Select: Student and Student ID C: Columns to Select: Primary and Secondary D: Command to Use: Pivot Column E: Command to Use: Reverse Rows F: Command to Use: Unpivot Columns
	VLOOKUP blood donor	Excel	Medium	2 mins	Solve
We are looking to find the contact number of the only blood donor with blood group O-. Which function should we use to look up the correct contact number? Here's the documentation for VLOOKUP: =VLOOKUP(lookup value, range containing the lookup value, the column number in the range containing the return value, Approximate match (TRUE) or Exact match (FALSE)). A: =VLOOKUP("O-", A1:E10, 3, TRUE) B: =VLOOKUP("O-", A1:E10, 3, FALSE) C: =VLOOKUP("O-", D1:D10, 4) D: =VLOOKUP("O-", D1:D10, 3) E: =VLOOKUP("O-", A1:E10, 4, TRUE) F: =VLOOKUP("O-", A1:E10, 4, FALSE) G: =VLOOKUP("Kane", A1:E10, 4)

Reason #4

1200+ customers in 75 countries

With Adaface, we were able to optimise our initial screening process by upwards of 75%, freeing up precious time for both hiring managers and our talent acquisition team alike!

Brandon Lee, Head of People, Love, Bonito

Reason #5

Designed for elimination, not selection

The most important thing while implementing the pre-employment Financial & Excel Modeling Test in your hiring process is that it is an elimination tool, not a selection tool. In other words: you want to use the test to eliminate the candidates who do poorly on the test, not to select the candidates who come out at the top. While they are super valuable, pre-employment tests do not paint the entire picture of a candidate’s abilities, knowledge, and motivations. Multiple easy questions are more predictive of a candidate's ability than fewer hard questions. Harder questions are often "trick" based questions, which do not provide any meaningful signal about the candidate's skillset.

Reason #6

1 click candidate invites

Email invites: You can send candidates an email invite to the Financial & Excel Modeling Test from your dashboard by entering their email address.

Public link: You can create a public link for each test that you can share with candidates.

API or integrations: You can invite candidates directly from your ATS by using our pre-built integrations with popular ATS systems or building a custom integration with your in-house ATS.

Reason #7

Detailed scorecards & benchmarks

Reason #8

High completion rate

Adaface tests are conversational, low-stress, and take just 25-40 mins to complete.

This is why Adaface has the highest test-completion rate (86%), which is more than 2x better than traditional assessments.

Reason #9

Advanced Proctoring

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What is Financial Modeling

Financial modeling is one of the most important skills in financial analysis. It combines the fields of finance, accounting, and business metrics to forecast an organization’s future financial performance. Financial modeling is heavily dependent on the use of Microsoft Excel for its forecasting purposes.

Business analysts, financial consultants, and finance professionals should have the ability to develop powerful financial models to project the financial performance of the company and conduct various other financial analyses that give powerful insights.

The various purposes for which financial models can be used include:

Debt Affordability
Evaluation of a business
Cashflow and capital budgeting
Data-driven decision making
Future planning

What roles can I use the Financial & Excel Modeling Test for?

Financial Analyst
Business Analyst
Accountant
Finance Manager
Risk Analyst
Data Analyst
Management Consultant

What topics are covered in the Financial & Excel Modeling Test?

Income Statements

Discounted Cash Flow

Excel Macros

Revenue Forecasting

Return on Equity

Leveraged Buyout Model

Excel Macros

Cost Forecasting

Return on Assets

Comparable Company Analysis Model

Sensitivity Analysis

Debt Forecasting

Turnover Ratios

Time Value of money - net present value

internal rate of return

Financial Analysis

Asset Valuation

Stock Valuation

Risk And Return - from various asset classes

Calculation of rate of return

Capital Asset Pricing Model

Balance Sheets

Cash Flows

Sensitivity Analysis

Historical Financial Statements

Financial Model Layout

Shareholder’s equity schedule

Working capital schedule

Depreciation schedule

Receivables turnover

Inventory turnover

Accounts Payables

NPV and XNPV

The debt to equity ratio is a representation of the company's capital structure that determines the proportion of external liabilities to the shareholders' equity.

Debt to Equity Ratio

DCF Valuation

Margins – Gross, Operating, and Net

Debt Financing

Equity Financing

Efficiency Ratios

Leverage Ratios

Liquidity ratios

Mergers and Acquisitions Model

LOOKUP

VLOOKUP

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The hiring managers felt that through the technical questions that they asked during the panel interviews, they were able to tell which candidates had better scores, and differentiated with those who did not score as well. They are highly satisfied with the quality of candidates shortlisted with the Adaface screening.

85%

reduction in screening time

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FAQs

What type of questions will the financial modeling test contain?

The financial modelling test contains scenario-based questions that test candidates on the following:

Expertise in building and managing financial models for variance analysis and business forecasting
Experience undertaking asset valuation and stock valuation
Deep understanding of historical ratios, income statement, depreciation schedule, amortization schedule and working capital
Strong problem-solving skills

Can I combine multiple skills into one custom assessment?

Yes, absolutely. Custom assessments are set up based on your job description, and will include questions on all must-have skills you specify.

Do you have any anti-cheating or proctoring features in place?

We have the following anti-cheating features in place:

Non-googleable questions
IP proctoring
Web proctoring
Webcam proctoring
Plagiarism detection
Secure browser

Read more about the proctoring features.

How do I interpret test scores?

The primary thing to keep in mind is that an assessment is an elimination tool, not a selection tool. A skills assessment is optimized to help you eliminate candidates who are not technically qualified for the role, it is not optimized to help you find the best candidate for the role. So the ideal way to use an assessment is to decide a threshold score (typically 55%, we help you benchmark) and invite all candidates who score above the threshold for the next rounds of interview.

What experience level can I use this test for?

Each Adaface assessment is customized to your job description/ ideal candidate persona (our subject matter experts will pick the right questions for your assessment from our library of 10000+ questions). This assessment can be customized for any experience level.

Does every candidate get the same questions?

Yes, it makes it much easier for you to compare candidates. Options for MCQ questions and the order of questions are randomized. We have anti-cheating/ proctoring features in place. In our enterprise plan, we also have the option to create multiple versions of the same assessment with questions of similar difficulty levels.