3 Statement Modeling (CFI) Exam comprehensive questions and verified answers 2026

3 Statement Modeling (CFI) Exam
comprehensive questions and verified
answers 2026

What is the main goal of each financial statement? - Correct answer-Income:

Measures Profitability

Cashflow Statement: Assess Cashflow

Balance Sheet: Review assets and how they are financed




* Income and Cashflow show us whole period Balance sheet show us at a specific

point in time

How are the 3 financial statements connected? - Correct answer-IS connects to

CFS through Net Income

CFS connects to BS through Ending Cash




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, For Property Plant and Equipment on the balance sheet what is the formula to find

it - Correct answer-PP&E= PP&E (Prior Year)-Capital Expenditures-Depreciation

Two Important aspect of Financial Models - Correct answer-1. Tool to assist with

decision making

2. Figures must be easy to understand

What is the model design - Correct answer-1. Outputs

2. Statements

3. Equity

4. Debt

5. Income Tax

6. Assets

7. Depreciation

8. Working Capital

9. Costs

10. Revenue

11. Drivers

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