FSA Exam 1 QUESTIONS WITH Detailed Answer
Key For (2026) Exam, A+ Solutions
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Terms in this set (76)
What is Financial Statement Analysis Analyzing past financial performance to predict
(FSA)? the future using financial statements.
What are the two key points about 1. Focus is on using financial statements to
FSA? understand the past (accounting is a means-to-
an-end)
2. Predicting the future is more important than
measuring the past
What is Data Analytics? Taking raw data, using techniques, and answering
questions with results.
What are the three key points about 1. Data analytics often requires the use of data
data analytics? from different sources
2. Many different techniques exist
3. Results from data analytics support your
answer
What are the 4 steps of the FSA 1. Determine the stakeholder of interest
Framework? 2. Master the past
3. Predict the future
4. Answer the stakeholder's question
, What does AMPS stand for? Ask the Question
Master the Data
Perform the Analysis
Share the Findings
What happens in the "Ask the Identify what you're trying to understand.
Question" step of AMPS?
What are examples of stakeholder Vendors: Can the firm pay for its inventory?
questions? Secured lenders: Can the firm's collateral cover
its loan?
Unsecured creditors: Can the firm make its
interest payments? Employees: Can the firm pay
its pension obligations?
Equity investors: Is firm value sensitive to growth
assumptions?
What happens in the "Master the Identify, understand, and incorporate available
Data" step of AMPS? data sources into the analysis.
What are the 4 types of analytics? 1. Descriptive (What happened?)
2. Diagnostic (Why did it happen?)
3. Predictive (What will happen?)
4. Prescriptive (What should we do?)
What happens in the "Share the Communicate results to others using:
Findings" step of AMPS? Data visualization
Sensitivity analysis
What is Porter's Five Forces? A framework for analyzing the competitiveness of
an industry.
Key For (2026) Exam, A+ Solutions
Save
Terms in this set (76)
What is Financial Statement Analysis Analyzing past financial performance to predict
(FSA)? the future using financial statements.
What are the two key points about 1. Focus is on using financial statements to
FSA? understand the past (accounting is a means-to-
an-end)
2. Predicting the future is more important than
measuring the past
What is Data Analytics? Taking raw data, using techniques, and answering
questions with results.
What are the three key points about 1. Data analytics often requires the use of data
data analytics? from different sources
2. Many different techniques exist
3. Results from data analytics support your
answer
What are the 4 steps of the FSA 1. Determine the stakeholder of interest
Framework? 2. Master the past
3. Predict the future
4. Answer the stakeholder's question
, What does AMPS stand for? Ask the Question
Master the Data
Perform the Analysis
Share the Findings
What happens in the "Ask the Identify what you're trying to understand.
Question" step of AMPS?
What are examples of stakeholder Vendors: Can the firm pay for its inventory?
questions? Secured lenders: Can the firm's collateral cover
its loan?
Unsecured creditors: Can the firm make its
interest payments? Employees: Can the firm pay
its pension obligations?
Equity investors: Is firm value sensitive to growth
assumptions?
What happens in the "Master the Identify, understand, and incorporate available
Data" step of AMPS? data sources into the analysis.
What are the 4 types of analytics? 1. Descriptive (What happened?)
2. Diagnostic (Why did it happen?)
3. Predictive (What will happen?)
4. Prescriptive (What should we do?)
What happens in the "Share the Communicate results to others using:
Findings" step of AMPS? Data visualization
Sensitivity analysis
What is Porter's Five Forces? A framework for analyzing the competitiveness of
an industry.
