WSP Financial Modeling Exams — VERIFIED 2026 | All 6 Modules Complete
WALL STREET PREP
FINANCIAL MODELING MASTERY
All 6 Wall Street Prep Financial Modeling Exams
VERIFIED 2026
Complete Questions, Answers & Explanations
240+ Exam Questions Across 6 Core Modules
© 2026 Financial Modeling Study Guide | For Educational Purposes
Wall Street Prep | Financial Modeling Study Guide 2026 Page N
,WSP Financial Modeling Exams — VERIFIED 2026 | All 6 Modules Complete
TABLE OF CONTENTS
EXAM 1: Three-Statement Financial Modeling 4
EXAM 2: Discounted Cash Flow (DCF) Valuation 48
EXAM 3: Comparable Company Analysis (Trading Comps) 92
EXAM 4: Precedent Transaction Analysis (Deal Comps) 136
EXAM 5: Leveraged Buyout (LBO) Modeling 180
EXAM 6: Merger Consequences & Accretion/Dilution 224
HOW TO USE THIS GUIDE
Each exam module contains 40 questions covering a specific area of financial modeling. Questions
follow Wall Street Prep's curriculum and are structured to test both conceptual understanding and
applied calculation ability.
Each question includes:
• Four answer choices (A, B, C, D)
• The correct answer clearly marked
• A detailed explanation of why the answer is correct
Recommended study approach: Attempt each question before reading the answer. Focus on
understanding the underlying concept, not memorizing the answer.
Wall Street Prep | Financial Modeling Study Guide 2026 Page N
,WSP Financial Modeling Exams — VERIFIED 2026 | All 6 Modules Complete
EXAM 1: Three-Statement Financial Modeling
Income Statement | Balance Sheet | Cash Flow Statement Integration
This exam tests mastery of building integrated three-statement financial models from scratch.
Topics include revenue build-up, operating expense modeling, working capital dynamics,
depreciation schedules, debt and interest, and the mechanics linking all three statements.
Total Questions: 41
Instructions: Select the best answer for each question, then review the detailed explanation provided.
Wall Street Prep | Financial Modeling Study Guide 2026 Page N
, WSP Financial Modeling Exams — VERIFIED 2026 | All 6 Modules Complete
Q1. Which financial statement is typically built first when constructing a three-statement model?
A. Balance Sheet
B. Cash Flow Statement
C. Income Statement
D. Statement of Retained Earnings
✔ Answer: C. Income Statement
Explanation: The Income Statement is built first because it drives Net Income, which feeds both the Balance
Sheet (retained earnings) and the Cash Flow Statement (starting point for operating cash flows).
Q2. If Accounts Receivable increases by $500K, what is the cash flow impact?
A. Cash increases by $500K
B. Cash decreases by $500K
C. No impact on cash
D. Net Income decreases by $500K
✔ Answer: B. Cash decreases by $500K
Explanation: An increase in AR means customers owe more money — revenue was recognized but cash has
not yet been collected, creating a use of cash.
Wall Street Prep | Financial Modeling Study Guide 2026 Page N
WALL STREET PREP
FINANCIAL MODELING MASTERY
All 6 Wall Street Prep Financial Modeling Exams
VERIFIED 2026
Complete Questions, Answers & Explanations
240+ Exam Questions Across 6 Core Modules
© 2026 Financial Modeling Study Guide | For Educational Purposes
Wall Street Prep | Financial Modeling Study Guide 2026 Page N
,WSP Financial Modeling Exams — VERIFIED 2026 | All 6 Modules Complete
TABLE OF CONTENTS
EXAM 1: Three-Statement Financial Modeling 4
EXAM 2: Discounted Cash Flow (DCF) Valuation 48
EXAM 3: Comparable Company Analysis (Trading Comps) 92
EXAM 4: Precedent Transaction Analysis (Deal Comps) 136
EXAM 5: Leveraged Buyout (LBO) Modeling 180
EXAM 6: Merger Consequences & Accretion/Dilution 224
HOW TO USE THIS GUIDE
Each exam module contains 40 questions covering a specific area of financial modeling. Questions
follow Wall Street Prep's curriculum and are structured to test both conceptual understanding and
applied calculation ability.
Each question includes:
• Four answer choices (A, B, C, D)
• The correct answer clearly marked
• A detailed explanation of why the answer is correct
Recommended study approach: Attempt each question before reading the answer. Focus on
understanding the underlying concept, not memorizing the answer.
Wall Street Prep | Financial Modeling Study Guide 2026 Page N
,WSP Financial Modeling Exams — VERIFIED 2026 | All 6 Modules Complete
EXAM 1: Three-Statement Financial Modeling
Income Statement | Balance Sheet | Cash Flow Statement Integration
This exam tests mastery of building integrated three-statement financial models from scratch.
Topics include revenue build-up, operating expense modeling, working capital dynamics,
depreciation schedules, debt and interest, and the mechanics linking all three statements.
Total Questions: 41
Instructions: Select the best answer for each question, then review the detailed explanation provided.
Wall Street Prep | Financial Modeling Study Guide 2026 Page N
, WSP Financial Modeling Exams — VERIFIED 2026 | All 6 Modules Complete
Q1. Which financial statement is typically built first when constructing a three-statement model?
A. Balance Sheet
B. Cash Flow Statement
C. Income Statement
D. Statement of Retained Earnings
✔ Answer: C. Income Statement
Explanation: The Income Statement is built first because it drives Net Income, which feeds both the Balance
Sheet (retained earnings) and the Cash Flow Statement (starting point for operating cash flows).
Q2. If Accounts Receivable increases by $500K, what is the cash flow impact?
A. Cash increases by $500K
B. Cash decreases by $500K
C. No impact on cash
D. Net Income decreases by $500K
✔ Answer: B. Cash decreases by $500K
Explanation: An increase in AR means customers owe more money — revenue was recognized but cash has
not yet been collected, creating a use of cash.
Wall Street Prep | Financial Modeling Study Guide 2026 Page N
