FINANCIAL STATEMENT ANALYSIS INTRODUCTION PRACTICE EXAM 2026 QUESTIONS AND ANSWERS CERTIFICATION EVALUATION SET

FINANCIAL STATEMENT ANALYSIS
INTRODUCTION PRACTICE EXAM 2026
QUESTIONS AND ANSWERS
CERTIFICATION EVALUATION SET

●● Purpose of financial statement analysis.
Answer: To support investment, credit, and other economic decision-
making.


●● Financial statement analysis framework.
Answer: A structured six-step process used to assess financial statements
and related information to reach conclusions and recommendations.


●● Number of steps in the financial statement analysis framework.
Answer: Six steps.


●● Step 1 of the financial statement analysis framework.
Answer: Articulate the purpose and context of the analysis.


●● Objective of Step 1.
Answer: Define the analysis objective, audience, scope, constraints, and
key questions.

, ●● Outputs of Step 1.
Answer: A clear objective, list of questions, expected report format,
timeline, and budget.


●● Step 2 of the financial statement analysis framework.
Answer: Collect relevant financial and non-financial data.


●● Sources of data in Step 2.
Answer: Financial statements, supplementary data, questionnaires,
industry and economic data, and discussions with stakeholders.


●● Outputs of Step 2.
Answer: Completed questionnaires and financial and quantitative data in
a usable format.


●● Step 3 of the financial statement analysis framework.
Answer: Process the collected data using analytical tools.


●● Examples of tools used in Step 3.
Answer: Financial ratios, growth rates, common-size statements, charts,
and statistical analysis.