[PDF] financial statement analysis practice questions

What are the different types of financial statement analysis?

In this free guide, we will break down the most important types and techniques of financial statement analysis. This guide is designed to be useful for both beginners and advanced finance professionals, with the main topics covering: (1) the income statement, (2) the balance sheet, (3) the cash flow statement, and (4) rates of return.

What is financial analysis & why is it important?

This usually begins with the income statement but also includes the balance sheet and cash flow statement. The main goal of financial analysis is to measure a company’s financial performance over time and against its peers. This analysis can then be used to forecast a company’s financial statements into the future.

What does a financial analyst do?

One of the main tasks of a financial analyst is to perform an extensive analysis of a company’s financial statements. This usually begins with the income statement but also includes the balance sheet and cash flow statement. The main goal of financial analysis is to measure a company’s financial performance over time and against its peers.

Should noncash activities be reported in accrual basis financial statements?

Noncash activities should be reported in accrual basis financial statements. Net cash flow from operating activities relates to normal business operations. Net income usually equals net cash flow from operating activities. The statement of cash flows is an essential part of the basic financial statements. 2 .