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FINANCIAL STATEMENT MODELING RETAKE ACTUAL EXAM (NEW
UPDATED VERSION) LATEST ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS
(VERIFIED QUESTIONS AND ANSWERS) | GUARANTEED PASS A+ UPDATED 2026
Q1. Revenue is $500,000 and cost of goods sold (COGS) is $300,000. What is gross profit?
A. $200,000
B. $800,000
C. $150,000
D. $350,000
Q2. Operating expenses are $80,000 and gross profit is $200,000. What is operating
income?
A. $280,000
B. $120,000
C. $200,000
D. $80,000
Q3. Net income is calculated as:
A. Revenue − COGS
B. Revenue − Operating Expenses
C. Revenue − COGS − Operating Expenses − Taxes
D. Revenue − Assets
Q4. If a company has revenue growth of 10% from $1,000,000, the new revenue is:
A. $1,100,000
B. $1,010,000
C. $1,500,000
D. $1,050,000
Q5. Which expense is NOT part of operating expenses?
A. Salaries
B. Interest expense
C. Rent
D. Depreciation
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Q6. EBITDA excludes:
A. Depreciation and amortization
B. Interest and taxes
C. Both B and A
D. Revenue
Q7. Which of the following affects net income directly?
A. Accounts payable
B. Cash balance
C. Revenue
D. Inventory turnover
Q8. A company’s COGS is $400,000 and inventory increased by $20,000. Effective COGS
for modeling purposes is:
A. $380,000
B. $420,000
C. $400,000
D. $440,000
Q9. Which ratio measures profitability?
A. Net profit margin
B. Current ratio
C. Debt-to-equity
D. Inventory turnover
Q10. A company has EBIT of $150,000 and interest expense of $50,000. EBT is:
A. $100,000
B. $200,000
C. $50,000
D. $150,000
Balance Sheet Modeling
Q11. Total assets are $800,000 and total liabilities are $500,000. Shareholders’ equity is:
A. $300,000
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B. $1,300,000
C. $500,000
D. $800,000
Q12. Cash is $50,000, accounts receivable $80,000, and inventory $120,000. Total current
assets are:
A. $250,000
B. $200,000
C. $300,000
D. $150,000
Q13. Which item is a current liability?
A. Accounts payable
B. Long-term debt
C. Retained earnings
D. Land
Q14. If depreciation is $10,000, accumulated depreciation increases by:
A. $10,000
B. $0
C. $5,000
D. $20,000
Q15. Working capital is calculated as:
A. Current assets − Current liabilities
B. Total assets − Total liabilities
C. Cash − Debt
D. Inventory ÷ Liabilities
Q16. Prepaid expenses are recorded as:
A. Current assets
B. Current liabilities
C. Equity
D. Revenue
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Q17. Long-term debt appears under:
A. Non-current liabilities
B. Current liabilities
C. Assets
D. Operating expenses
Q18. Retained earnings are affected by:
A. Net income and dividends
B. Revenue only
C. Cash balance only
D. Inventory
Q19. Which of the following is NOT an asset?
A. Accounts receivable
B. Accounts payable
C. Cash
D. Inventory
Q20. Which ratio measures liquidity?
A. Current ratio
B. Debt-to-equity
C. ROE
D. Gross margin
Cash Flow Statements
Q21. Cash from operating activities includes:
A. Purchase of equipment
B. Issuance of debt
C. Net income adjustments for non-cash items
D. Dividend payments
2026 2027 GRADED A+
FINANCIAL STATEMENT MODELING RETAKE ACTUAL EXAM (NEW
UPDATED VERSION) LATEST ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS
(VERIFIED QUESTIONS AND ANSWERS) | GUARANTEED PASS A+ UPDATED 2026
Q1. Revenue is $500,000 and cost of goods sold (COGS) is $300,000. What is gross profit?
A. $200,000
B. $800,000
C. $150,000
D. $350,000
Q2. Operating expenses are $80,000 and gross profit is $200,000. What is operating
income?
A. $280,000
B. $120,000
C. $200,000
D. $80,000
Q3. Net income is calculated as:
A. Revenue − COGS
B. Revenue − Operating Expenses
C. Revenue − COGS − Operating Expenses − Taxes
D. Revenue − Assets
Q4. If a company has revenue growth of 10% from $1,000,000, the new revenue is:
A. $1,100,000
B. $1,010,000
C. $1,500,000
D. $1,050,000
Q5. Which expense is NOT part of operating expenses?
A. Salaries
B. Interest expense
C. Rent
D. Depreciation
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Q6. EBITDA excludes:
A. Depreciation and amortization
B. Interest and taxes
C. Both B and A
D. Revenue
Q7. Which of the following affects net income directly?
A. Accounts payable
B. Cash balance
C. Revenue
D. Inventory turnover
Q8. A company’s COGS is $400,000 and inventory increased by $20,000. Effective COGS
for modeling purposes is:
A. $380,000
B. $420,000
C. $400,000
D. $440,000
Q9. Which ratio measures profitability?
A. Net profit margin
B. Current ratio
C. Debt-to-equity
D. Inventory turnover
Q10. A company has EBIT of $150,000 and interest expense of $50,000. EBT is:
A. $100,000
B. $200,000
C. $50,000
D. $150,000
Balance Sheet Modeling
Q11. Total assets are $800,000 and total liabilities are $500,000. Shareholders’ equity is:
A. $300,000
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B. $1,300,000
C. $500,000
D. $800,000
Q12. Cash is $50,000, accounts receivable $80,000, and inventory $120,000. Total current
assets are:
A. $250,000
B. $200,000
C. $300,000
D. $150,000
Q13. Which item is a current liability?
A. Accounts payable
B. Long-term debt
C. Retained earnings
D. Land
Q14. If depreciation is $10,000, accumulated depreciation increases by:
A. $10,000
B. $0
C. $5,000
D. $20,000
Q15. Working capital is calculated as:
A. Current assets − Current liabilities
B. Total assets − Total liabilities
C. Cash − Debt
D. Inventory ÷ Liabilities
Q16. Prepaid expenses are recorded as:
A. Current assets
B. Current liabilities
C. Equity
D. Revenue
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Q17. Long-term debt appears under:
A. Non-current liabilities
B. Current liabilities
C. Assets
D. Operating expenses
Q18. Retained earnings are affected by:
A. Net income and dividends
B. Revenue only
C. Cash balance only
D. Inventory
Q19. Which of the following is NOT an asset?
A. Accounts receivable
B. Accounts payable
C. Cash
D. Inventory
Q20. Which ratio measures liquidity?
A. Current ratio
B. Debt-to-equity
C. ROE
D. Gross margin
Cash Flow Statements
Q21. Cash from operating activities includes:
A. Purchase of equipment
B. Issuance of debt
C. Net income adjustments for non-cash items
D. Dividend payments
2026 2027 GRADED A+
