FINANCIAL STATEMENT ANALYSIS
INTRODUCTION COMPREHENSIVE EXAM
2026 FULL QUESTIONS AND CORRECT
ANSWERS ALREADY PASSED
●● What are some decisions involved in financial statement analysis?.
Answer: Whether to invest in the company's securities or recommend
them to investors and whether to extend trade or bank credit to the
company.
●● Why do analysts use financial statements?.
Answer: To evaluate a company's past performance and current financial
position in order to form opinions about the company's ability to earn
profits and generate cash flow in the future.
●● What are the elements of the income statement?.
Answer: Revenues, expenses, gains, and losses
●● What are "revenues"?.
Answer: They are inflows from delivering or producing goods,
rendering services, or other activities that constitute the entity's ongoing
major or central operations.
, ●● What are "expenses"?.
Answer: They're outflows from delivering or producing goods or
services that constitute the entity's ongoing major or central operations.
●● What are "Gains and losses"?.
Answer: They're increases and decreases in equity or net assets from
peripheral or incidental transactions.
●● What are the 3 elements of a balance sheet?.
Answer: Assets, Liabilities, Owners' equity
●● What is an "Asset"?.
Answer: Assets are probable current and future economic benefits
obtained or controlled by a particular entity as a result of past
transactions or events. Assets are a firm's economic resources.
●● What are "Liabilities"?.
Answer: Liabilities are probable future economic costs. They arise from
present obligations of a particular entity to transfer assets or provide
services to other entities in the future as a result of past transactions or
events.
●● What is "Owners' equity"?.
INTRODUCTION COMPREHENSIVE EXAM
2026 FULL QUESTIONS AND CORRECT
ANSWERS ALREADY PASSED
●● What are some decisions involved in financial statement analysis?.
Answer: Whether to invest in the company's securities or recommend
them to investors and whether to extend trade or bank credit to the
company.
●● Why do analysts use financial statements?.
Answer: To evaluate a company's past performance and current financial
position in order to form opinions about the company's ability to earn
profits and generate cash flow in the future.
●● What are the elements of the income statement?.
Answer: Revenues, expenses, gains, and losses
●● What are "revenues"?.
Answer: They are inflows from delivering or producing goods,
rendering services, or other activities that constitute the entity's ongoing
major or central operations.
, ●● What are "expenses"?.
Answer: They're outflows from delivering or producing goods or
services that constitute the entity's ongoing major or central operations.
●● What are "Gains and losses"?.
Answer: They're increases and decreases in equity or net assets from
peripheral or incidental transactions.
●● What are the 3 elements of a balance sheet?.
Answer: Assets, Liabilities, Owners' equity
●● What is an "Asset"?.
Answer: Assets are probable current and future economic benefits
obtained or controlled by a particular entity as a result of past
transactions or events. Assets are a firm's economic resources.
●● What are "Liabilities"?.
Answer: Liabilities are probable future economic costs. They arise from
present obligations of a particular entity to transfer assets or provide
services to other entities in the future as a result of past transactions or
events.
●● What is "Owners' equity"?.
