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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:

  • Financial analysis
  • Financial forecasting
  • Valuation
  • Risk management
  • Financial statements
  • Depreciation schedule
  • Time Value of money
  • Internal rate of return
  • Asset Valuation
  • Risk And Return
  • Capital Asset Pricing Model
  • Excel modeling
  • Financial planning
  • Financial reporting
  • Investment analysis
  • Budgeting
  • Cash flow statement
  • Historical ratios
  • Net present value
  • Financial Analysis
  • Stock Valuation
  • Rate of return
  • Excel Macros

9 reasons why
9 reasons why

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



Reason #1

Tests for on-the-job skills

The Financial & Excel Modeling Test helps recruiters and hiring managers 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 time by filtering out unqualified candidates at the first step of the hiring process.

The test screens for the following skills that hiring managers look for in candidates:

  • Ability to prepare detailed financial models
  • Strong understanding of financial analysis and forecasting
  • Capability to analyze and interpret financial statements
  • Proficiency in valuation techniques
  • Knowledge of investment analysis and risk management
  • Skill in budgeting and financial planning
  • Ability to create and analyze cash flow statements
  • Understanding of time value of money concepts
  • Proficiency in Excel modeling and macros
  • Capability to perform asset and stock valuation
  • Competence in using the Capital Asset Pricing Model
  • Ability to evaluate risk and return in financial decision making
Reason #2

No trick questions

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.

View sample questions

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.

How we design questions

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

Compound Revenue Growth Rate
Projections
Income Statement
Solve
Given the following information for the company NotOpenAI:
 image
What is the projected Year 6 Revenue based on the historical compound annual growth rate (CAGR)?

Medium

Depreciation on new Capex
Depreciation Schedule
Projections
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?
 image

Medium

Projected Current Ratio
Projections
Balance Sheet
Solve
Given the following information for the company NotOpenAI:
 image
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:
 image
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:
 image
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

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?
 image

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:
 image
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:
 image
Here’s the expected data format: 
 image
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)).
 image
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

Compound Revenue Growth Rate
Projections
Income Statement

3 mins

Financial Modeling
Solve

Medium

Depreciation on new Capex
Depreciation Schedule
Projections

3 mins

Financial Modeling
Solve

Medium

Projected Current Ratio
Projections
Balance Sheet

3 mins

Financial Modeling
Solve

Medium

Earnings Per Share

3 mins

Finance
Solve

Medium

Net cash receipt on issued bonds

3 mins

Finance
Solve

Medium

Return on Capital Employed

3 mins

Finance
Solve

Easy

Hedge risk using derivates

2 mins

Finance
Solve

Medium

MATCH INDEX LOOKUP

2 mins

Excel
Solve

Medium

Organization data
Data transformation

3 mins

Excel
Solve

Medium

Student scores
Data formatting

2 mins

Excel
Solve

Medium

VLOOKUP blood donor

2 mins

Excel
Solve
🧐 Question🔧 Skill💪 Difficulty⌛ Time
Compound Revenue Growth Rate
Projections
Income Statement
Financial Modeling
Medium3 mins
Solve
Depreciation on new Capex
Depreciation Schedule
Projections
Financial Modeling
Medium3 mins
Solve
Projected Current Ratio
Projections
Balance Sheet
Financial Modeling
Medium3 mins
Solve
Earnings Per Share
Finance
Medium3 mins
Solve
Net cash receipt on issued bonds
Finance
Medium3 mins
Solve
Return on Capital Employed
Finance
Medium3 mins
Solve
Hedge risk using derivates
Finance
Easy2 mins
Solve
MATCH INDEX LOOKUP
Excel
Medium2 mins
Solve
Organization data
Data transformation
Excel
Medium3 mins
Solve
Student scores
Data formatting
Excel
Medium2 mins
Solve
VLOOKUP blood donor
Excel
Medium2 mins
Solve
Reason #4

1200+ customers in 75 countries

customers in 75 countries
Brandon

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.

Science behind Adaface tests
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.

invite candidates
Reason #7

Detailed scorecards & benchmarks

View sample scorecard
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.

test completion rate
Reason #9

Advanced Proctoring


Learn more

About the Financial & Excel Modeling Online Test

Why you should use Pre-employment Financial & Excel Modeling Test?

The Financial & Excel Modeling Test makes use of scenario-based questions to test for on-the-job skills as opposed to theoretical knowledge, ensuring that candidates who do well on this screening test have the relavant skills. The questions are designed to covered following on-the-job aspects:

  • Financial modeling skills including constructing financial models for business valuation and forecasting
  • Proficiency in finance principles and concepts such as financial analysis, planning, reporting, and budgeting
  • Ability to perform financial analysis and interpret financial statements to assess the financial health of a company
  • Understanding of valuation methodologies and ability to value assets and stocks
  • Knowledge of investment analysis and risk management techniques
  • Familiarity with financial forecasting methods to predict future performance and trends
  • Competence in using Excel for financial modeling, data analysis, and reporting
  • Proficiency in creating and analyzing cash flow statements and depreciation schedules
  • Ability to calculate historical ratios and analyze their implications
  • Understanding of the Time Value of Money concept and its application in financial decision-making

Once the test is sent to a candidate, the candidate receives a link in email to take the test. For each candidate, you will receive a detailed report with skills breakdown and benchmarks to shortlist the top candidates from your pool.

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

  • Financial Analysis

    Financial analysis refers to the assessment of a company's financial performance, including the analysis of financial statements, ratios, and trends. It helps in evaluating the company's profitability, liquidity, and solvency, providing insights into its financial health and performance.

  • Financial Planning

    Financial planning involves developing a comprehensive strategy to manage and allocate financial resources effectively. It includes creating budgets, setting financial goals, and formulating investment plans to achieve those goals. This skill is measured in the test to assess a candidate's ability to develop and execute financial plans.

  • Financial Forecasting

    Financial forecasting is the process of predicting future financial outcomes based on historical data and market trends. It helps in estimating revenues, expenses, and cash flows, enabling businesses to make informed decisions and plans. This skill is measured in the test to evaluate a candidate's ability to forecast financial outcomes accurately.

  • Financial Reporting

    Financial reporting involves preparing and presenting financial statements and reports to communicate relevant financial information to stakeholders. It includes the preparation of balance sheets, income statements, and cash flow statements. This skill is measured in the test to assess a candidate's proficiency in accurately preparing financial reports.

  • Valuation

    Valuation refers to the process of determining the intrinsic value of an asset, such as a business, stock, or investment. It involves analyzing various factors and methodologies to estimate the fair value of the asset. This skill is measured in the test to evaluate a candidate's ability to assess the worth of different assets.

  • Investment Analysis

    Investment analysis involves evaluating the potential risks and returns of different investment opportunities. It includes analyzing financial statements, market trends, and industry dynamics to make informed investment decisions. This skill is measured in the test to assess a candidate's ability to analyze and recommend suitable investment options.

  • Risk Management

    Risk management is the process of identifying, assessing, and mitigating potential risks that may impact an organization's financial objectives. It includes developing risk avoidance and risk mitigation strategies to minimize potential losses. This skill is measured in the test to evaluate a candidate's understanding of risk management techniques.

  • Budgeting

    Budgeting involves the process of planning and allocating financial resources to achieve organizational goals. It includes estimating expenses, setting financial targets, and monitoring actual spending against the budget. This skill is measured in the test to assess a candidate's ability to create and manage budgets effectively.

  • Financial Statements

    Financial statements are formal records of a company's financial activities, including the balance sheet, income statement, and cash flow statement. These statements provide essential information about an organization's financial performance, position, and cash flows. This skill is measured in the test to evaluate a candidate's proficiency in analyzing and interpreting financial statements.

  • Cash Flow Statement

    A cash flow statement is a financial statement that shows the inflows and outflows of cash during a specific period. It provides insights into a company’s liquidity, operating activities, and investing/financing decisions. This skill is measured in the test to assess a candidate's understanding of cash flow analysis and their ability to interpret cash flow statements.

  • Depreciation Schedule

    A depreciation schedule is a document that outlines the depreciation expense of an asset over its useful life. It helps in allocating the cost of an asset over time and reflects the reduction in its value due to wear and tear or obsolescence. This skill is measured in the test to evaluate a candidate's ability to calculate and track depreciation expenses.

  • Historical Ratios

    Historical ratios are financial metrics calculated based on historical financial data. They provide insights into a company's past financial performance and can be used to analyze trends and make comparisons. This skill is measured in the test to assess a candidate's proficiency in analyzing and interpreting historical financial ratios.

  • Time Value of Money

    The time value of money is a concept that states that the value of money changes over time due to factors such as inflation, interest rates, and opportunity costs. It is important in financial analysis and investment decision-making as it helps in evaluating the worth of cash flows occurring at different times. This skill is measured in the test to evaluate a candidate's understanding of the time value of money and its application in financial calculations.

  • Net Present Value

    Net present value (NPV) is a financial metric used to assess the profitability of an investment by discounting the future cash flows to their present value. Positive NPV indicates that the investment is expected to generate more value than the initial investment, while negative NPV implies a potential loss. This skill is measured in the test to assess a candidate's ability to calculate and interpret NPV.

  • Internal Rate of Return

    Internal rate of return (IRR) is a financial metric used to assess the attractiveness of an investment by calculating the discount rate at which the net present value (NPV) of the investment becomes zero. It helps in determining the rate of return that an investment is expected to generate. This skill is measured in the test to evaluate a candidate's ability to calculate and interpret IRR.

  • Asset Valuation

    Asset valuation refers to the process of determining the worth of an asset, such as property, equipment, or inventories. It involves analyzing factors such as market conditions, replacement costs, and income potential to estimate the fair value of the asset. This skill is measured in the test to assess a candidate's ability to value different types of assets.

  • Stock Valuation

    Stock valuation is the process of determining the intrinsic value of a company's stock. It involves analyzing financial statements, market trends, and industry dynamics to estimate the fair value of the stock. This skill is measured in the test to evaluate a candidate's ability to analyze and value stocks.

  • Risk And Return

    Risk and return are two essential concepts in finance that go hand in hand. Risk refers to the possibility of losing some or all of the invested capital, while return represents the gain or loss on the investment. Measuring a candidate's understanding of risk and return helps in assessing their ability to make informed investment decisions.

  • Rate of Return

    Rate of return is a financial measure used to evaluate the profitability of an investment over a specific period. It represents the percentage gain or loss on an investment relative to its initial cost. Measuring a candidate's ability to calculate and interpret rates of return helps in assessing their analytical skills in investment analysis and performance evaluation.

  • Capital Asset Pricing Model

    The Capital Asset Pricing Model (CAPM) is a financial model used to estimate the expected return on an investment based on its risk relative to the overall market. It helps in determining the appropriate required rate of return for an investment. Measuring a candidate's understanding of CAPM helps in assessing their knowledge of asset pricing and risk management.

  • Excel Macros

    Excel macros are automated sequences of commands and functions written in Visual Basic for Applications (VBA) programming language. They enable users to automate repetitive tasks, perform complex calculations, and interact with data in Excel. Measuring a candidate's proficiency in Excel macros helps in assessing their ability to optimize workflows and enhance productivity.

  • Excel Modeling

    Excel modeling refers to the process of creating financial models using Excel to analyze and forecast financial data. It involves using formulas, functions, and data analysis techniques to build dynamic models that facilitate decision-making. Measuring a candidate's skill in Excel modeling helps in assessing their ability to effectively use Excel for financial analysis and forecasting.

  • Full list of covered topics

    The actual topics of the questions in the final test will depend on your job description and requirements. However, here's a list of topics you can expect the questions for Financial & Excel Modeling Test to be based on.

    Financial modeling
    Financial analysis
    Financial forecasting
    Financial reporting
    Valuation techniques
    Investment analysis
    Risk management
    Budgeting
    Financial statements
    Cash flow statement
    Depreciation schedule
    Historical ratios
    Time value of money
    Net present value
    Internal rate of return
    Asset valuation
    Stock valuation
    Risk and return
    Rate of return
    Capital Asset Pricing Model
    Excel modeling
    Excel macros
    Financial planning
    Financial statements analysis
    Financial ratios
    Cost of capital
    Debt financing
    Equity financing
    Profitability analysis
    Break-even analysis
    Sensitivity analysis
    Financial statement forecasting
    Market indicators
    Financial options
    Working capital management
    Risk assessment
    Portfolio management
    Capital budgeting
    Dividend policy
    Cash management
    Financial projections
    Operating income
    Financial efficiency
    Capital structure
    Leverage
    Financial decision making
    Financial controls
    Financial risk
    Financial strategy
    Return on investment
    Financial performance evaluation
    Equity valuation
    Financial markets

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

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

How is the Financial & Excel Modeling Test customized for senior candidates?

For intermediate/ experienced candidates, we customize the assessment questions to include advanced topics and increase the difficulty level of the questions. This might include adding questions on topics like

  • Knowledge of Net Present Value (NPV) and Internal Rate of Return (IRR) techniques in investment evaluation
  • Capability to perform financial statement analysis and interpret the results
  • Proficiency in asset and stock valuation methods based on market, income, and cost approaches
  • Understanding of risk and return principles and the Capital Asset Pricing Model (CAPM)
  • Ability to calculate and interpret rates of return on investments
  • Competence in using Excel macros and automation for financial modeling and analysis
  • Proficiency in constructing Excel models for financial planning and forecasting
  • Capability to perform sensitivity analysis and scenario planning using Excel
  • Knowledge of financial forecasting techniques and their application in Excel modeling
  • Ability to build Excel models for budgeting and variance analysis
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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

Financial & Excel Modeling Hiring Test 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. Here's a quick guide on how you can request a custom test.

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
  • Screen proctoring
  • Web proctoring
  • Webcam proctoring
  • Plagiarism detection
  • Secure browser
  • Copy paste protection

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.

I'm a candidate. Can I try a practice test?

No. Unfortunately, we do not support practice tests at the moment. However, you can use our sample questions for practice.

What is the cost of using this test?

You can check out our pricing plans.

Can I get a free trial?

Yes, you can sign up for free and preview this test.

I just moved to a paid plan. How can I request a custom assessment?

Here is a quick guide on how to request a custom assessment on Adaface.

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