WALL STREET PREP ACTUAL 10 2026
INVESTMENT BANKING CONCEPTS AND
FINANCIAL ANALYSIS REVISION MATERIALS
◉ cash from financing activities (CFF).
Answer: new borrowing / pay down of debt / new issuance of stock
/ share repurchases / issuance of dividends
◉ working capital.
Answer: -CFO
-increase in current assets = cash outflow
-increase in current liabilities = cash inflow
◉ asset write downs / impairments.
Answer: -added back to CFS via CFO
◉ Increases in A/R, inventory, prepaid expenses, other current
assets should be _____________ net income to get to CFO.
Answer: subtracted
◉ increases in A/P, accrued expenses, other current liabilities
should be ____________ net income to get to CFO.
,Answer: added
◉ gains on sale of assets.
Answer: subtracted from CFO
◉ stock based compensation.
Answer: added to CFO
◉ Common CFI inflows/outflows.
Answer: - capital expenditures
- purchases of intangible assets
+ asset sales
+ sales of debt/ equity security
- purchases of debt/equity security
◉ Common CFS inflows/outflows.
Answer: -Issuance / repayment of debt (cash inflow / outflow)
-Common stock issued / repurchased (cash inflow / outflow)
-Payment of common & preferred dividends (cash outflow)
◉ Assumptions of Accounting.
Answer: accounting entity, going concern, measurement, periodicity
, ◉ principles of accounting.
Answer: 1. Historical Cost
2. Revenue Recognition
3. Matching Principle
4. Full Disclosure
◉ constraints of accounting.
Answer: 1. Estimates and judgements
2. materiality
3. consistency
4. conservatism
◉ Form 10-K.
Answer: Publicly traded companies must file a report at the end of
every fiscal year which includes a thorough overview of their
businesses and finances as well as financial statements
◉ Form 10-Q.
Answer: At the end of each quarter of the fiscal year (for the first
three quarters) publicly traded companies file a report with the SEC
including financial statements and non-financial data
INVESTMENT BANKING CONCEPTS AND
FINANCIAL ANALYSIS REVISION MATERIALS
◉ cash from financing activities (CFF).
Answer: new borrowing / pay down of debt / new issuance of stock
/ share repurchases / issuance of dividends
◉ working capital.
Answer: -CFO
-increase in current assets = cash outflow
-increase in current liabilities = cash inflow
◉ asset write downs / impairments.
Answer: -added back to CFS via CFO
◉ Increases in A/R, inventory, prepaid expenses, other current
assets should be _____________ net income to get to CFO.
Answer: subtracted
◉ increases in A/P, accrued expenses, other current liabilities
should be ____________ net income to get to CFO.
,Answer: added
◉ gains on sale of assets.
Answer: subtracted from CFO
◉ stock based compensation.
Answer: added to CFO
◉ Common CFI inflows/outflows.
Answer: - capital expenditures
- purchases of intangible assets
+ asset sales
+ sales of debt/ equity security
- purchases of debt/equity security
◉ Common CFS inflows/outflows.
Answer: -Issuance / repayment of debt (cash inflow / outflow)
-Common stock issued / repurchased (cash inflow / outflow)
-Payment of common & preferred dividends (cash outflow)
◉ Assumptions of Accounting.
Answer: accounting entity, going concern, measurement, periodicity
, ◉ principles of accounting.
Answer: 1. Historical Cost
2. Revenue Recognition
3. Matching Principle
4. Full Disclosure
◉ constraints of accounting.
Answer: 1. Estimates and judgements
2. materiality
3. consistency
4. conservatism
◉ Form 10-K.
Answer: Publicly traded companies must file a report at the end of
every fiscal year which includes a thorough overview of their
businesses and finances as well as financial statements
◉ Form 10-Q.
Answer: At the end of each quarter of the fiscal year (for the first
three quarters) publicly traded companies file a report with the SEC
including financial statements and non-financial data
