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FSA Exam 1 QUESTIONS WITH Detailed Answer Key
For (2026) Exam
What is Financial Statement Analysis (FSA)? ......ANSWER......Analyzing
past financial performance to predict the future using financial
statements.
What are the two key points about FSA? ......ANSWER......1. Focus is on
using financial statements to 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? ......ANSWER......Taking raw data, using
techniques, and answering questions with results.
What are the three key points about data analytics? ......ANSWER......1.
Data analytics often requires the use of data from different sources
2. Many different techniques exist
3. Results from data analytics support your answer
What are the 4 steps of the FSA Framework? ......ANSWER......1.
Determine the stakeholder of interest
2. Master the past
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3. Predict the future
4. Answer the stakeholder's question
What does AMPS stand for? ......ANSWER......Ask the Question
Master the Data
Perform the Analysis
Share the Findings
What happens in the "Ask the Question" step of AMPS?
......ANSWER......Identify what you're trying to understand.
What are examples of stakeholder questions? ......ANSWER......Vendors:
Can the firm pay for its inventory?
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 Data" step of AMPS?
......ANSWER......Identify, understand, and incorporate available data
sources into the analysis.
What are the 4 types of analytics? ......ANSWER......1. Descriptive (What
happened?)
pg. 2
FSA Exam 1 QUESTIONS WITH Detailed Answer Key
For (2026) Exam
What is Financial Statement Analysis (FSA)? ......ANSWER......Analyzing
past financial performance to predict the future using financial
statements.
What are the two key points about FSA? ......ANSWER......1. Focus is on
using financial statements to 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? ......ANSWER......Taking raw data, using
techniques, and answering questions with results.
What are the three key points about data analytics? ......ANSWER......1.
Data analytics often requires the use of data from different sources
2. Many different techniques exist
3. Results from data analytics support your answer
What are the 4 steps of the FSA Framework? ......ANSWER......1.
Determine the stakeholder of interest
2. Master the past
pg. 1
, 2|Page
3. Predict the future
4. Answer the stakeholder's question
What does AMPS stand for? ......ANSWER......Ask the Question
Master the Data
Perform the Analysis
Share the Findings
What happens in the "Ask the Question" step of AMPS?
......ANSWER......Identify what you're trying to understand.
What are examples of stakeholder questions? ......ANSWER......Vendors:
Can the firm pay for its inventory?
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 Data" step of AMPS?
......ANSWER......Identify, understand, and incorporate available data
sources into the analysis.
What are the 4 types of analytics? ......ANSWER......1. Descriptive (What
happened?)
pg. 2
