Wall Street Prep Financial Statement
Modeling Questions and answers
What is a financial statement model (FSM)? - correct answer-- Provides historical results
and forecasts
3 parts:
- Income Statement
- Balance Sheet
- Cash Flow Statement
What can a FSM lead to? - correct answer-Can be directly used for models such as the
- DCF model
- LBO model
- M&A model
- Comps model
What skills are required for effective modeling? - correct answer-- Accounting (most
important)
- Corporate Finance
- Excel
- Reading Financial Reports
- Company Knowledge
- Industry Knowledge
- Attention to Detail
Modeling Questions and answers
What is a financial statement model (FSM)? - correct answer-- Provides historical results
and forecasts
3 parts:
- Income Statement
- Balance Sheet
- Cash Flow Statement
What can a FSM lead to? - correct answer-Can be directly used for models such as the
- DCF model
- LBO model
- M&A model
- Comps model
What skills are required for effective modeling? - correct answer-- Accounting (most
important)
- Corporate Finance
- Excel
- Reading Financial Reports
- Company Knowledge
- Industry Knowledge
- Attention to Detail
