Financial Reporting and Analysis
Exam Actual Questions and Answers
2026
What is the objective of financial reporting?
A. Show cash flows of company
B. Give stockholders incentive to invest
C. Companies have to
D. To provide information about a company's performance,
financial position, and changes in financial position -
correct answer ✅D. To provide information about a company's
performance, financial position, and changes in financial position
Past and present reports used to form expectations about a
company's future profit and cash flows is called -
correct answer ✅Financial Statement Analysis
What are the 5 financial statements used? -
correct answer ✅1. Balance sheet
2. income statement
3. statement of comprehensive income
4. changes in equity-gains and losses excluded from income
statement
,Financial Reporting and Analysis
Exam Actual Questions and Answers
2026
5. cash flows
The primary purpose of cash flows is to give ____ and ____ the
ability to evaluate a company's ____, ____, and ___ ______. -
correct answer ✅Creditors, Investors
liquidity, solvency, and financial flexibility
What are the 3 components in the cash flow statement? -
correct answer ✅1. Operating
2. Investing
3. Financing
Cash flow of Operations compromise which of the following?
a. Purchase of long term assets, investments, and other
investments
b. Cash transactions of normal business functions
c. Activities related to obtaining or repaying capital
d. Issuance of stockholder equity -
correct answer ✅b. Cash transactions of normal business
functions
, Financial Reporting and Analysis
Exam Actual Questions and Answers
2026
Cash flow of Investing compromise which of the following?
a. Purchase of long term assets, investments, and other
investments
b. Cash transactions of normal business functions
c. Activities related to obtaining or repaying capital
d. Issuance of stockholder equity -
correct answer ✅a. Purchase of long term assets, investments,
and other investments
Cash flow of Finance compromise which of the following?
a. Purchase of long term assets, investments, and other
investments
b. Cash transactions of normal business functions
c. Activities related to obtaining or repaying capital
d. Issuance of stockholder equity -
correct answer ✅c. Activities related to obtaining or repaying
capital
Exam Actual Questions and Answers
2026
What is the objective of financial reporting?
A. Show cash flows of company
B. Give stockholders incentive to invest
C. Companies have to
D. To provide information about a company's performance,
financial position, and changes in financial position -
correct answer ✅D. To provide information about a company's
performance, financial position, and changes in financial position
Past and present reports used to form expectations about a
company's future profit and cash flows is called -
correct answer ✅Financial Statement Analysis
What are the 5 financial statements used? -
correct answer ✅1. Balance sheet
2. income statement
3. statement of comprehensive income
4. changes in equity-gains and losses excluded from income
statement
,Financial Reporting and Analysis
Exam Actual Questions and Answers
2026
5. cash flows
The primary purpose of cash flows is to give ____ and ____ the
ability to evaluate a company's ____, ____, and ___ ______. -
correct answer ✅Creditors, Investors
liquidity, solvency, and financial flexibility
What are the 3 components in the cash flow statement? -
correct answer ✅1. Operating
2. Investing
3. Financing
Cash flow of Operations compromise which of the following?
a. Purchase of long term assets, investments, and other
investments
b. Cash transactions of normal business functions
c. Activities related to obtaining or repaying capital
d. Issuance of stockholder equity -
correct answer ✅b. Cash transactions of normal business
functions
, Financial Reporting and Analysis
Exam Actual Questions and Answers
2026
Cash flow of Investing compromise which of the following?
a. Purchase of long term assets, investments, and other
investments
b. Cash transactions of normal business functions
c. Activities related to obtaining or repaying capital
d. Issuance of stockholder equity -
correct answer ✅a. Purchase of long term assets, investments,
and other investments
Cash flow of Finance compromise which of the following?
a. Purchase of long term assets, investments, and other
investments
b. Cash transactions of normal business functions
c. Activities related to obtaining or repaying capital
d. Issuance of stockholder equity -
correct answer ✅c. Activities related to obtaining or repaying
capital
