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Free CFA Financial Statement Analysis Practice Questions & Answers

900 exam-style Financial Statement Analysis questions. Pick your answer, hit Check answer, and see the worked solution — free to start, no signup.

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Question 121

A company receives a non‑refundable upfront fee for a long-term service. Revenue should be:

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Question 122

An asset is impaired when:

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Question 123

A company delays recognizing an impairment. What happens?

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Question 124

Which asset is most likely to require impairment testing?

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Question 125

A company capitalizes development costs. What happens?

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Question 126

A provision should be recognized when:

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Question 127

A company underestimates a provision. What happens?

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Question 128

A contingent liability should be disclosed when:

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Question 129

A company frequently changes accounting policies. What does this imply?

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Question 130

A company reports strong profit but weak cash flow. What is the likely cause?

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Question 131

A company’s depreciation expense suddenly drops. What might this indicate?

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Question 132

A company’s liabilities rise faster than assets. What happens?

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Question 133

A company’s debt‑to‑equity ratio falls. What is the most likely cause?

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Question 134

A company’s long‑term debt stays constant while equity rises. What happens?

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Question 135

A company’s fixed‑charge coverage ratio falls. What does this indicate?

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Question 136

A company’s leverage increases. What is the most likely effect?

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Question 137

A company’s financing cash flow is positive. What is the most likely reason?

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Question 138

A company’s segment shows rising revenue but falling profit. What is the likely cause?

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Question 139

A segment’s margin is consistently higher than the company’s overall margin. What does this imply?

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Question 140

A company reports a large gain from selling an asset. What should an analyst consider?

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Question 141

A company frequently restructures operations. What does this imply?

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Question 142

A company recognizes a provision. What happens?

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Question 143

A contingent liability becomes probable and measurable. What should the company do?

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Question 144

A company writes down equipment. What is the effect?

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Question 145

A company increases its estimate of warranty costs. What happens?

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Question 146

A company’s long‑term liabilities fall while equity stays constant. What happens?

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Question 147

A segment’s revenue rises but its margin falls. What is the likely cause?

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Question 148

A segment contributes 40% of profit but only 20% of revenue. What does this imply?

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Question 149

A company reports a large restructuring charge every year. What does this imply?

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Question 150

A company’s auditor highlights uncertainty about future operations. What does this indicate?

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Free CFA Financial Statement Analysis Practice Questions & Answers

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Thank you