FA Assessment Financial Analyst & Accounting Assessment Test Full Name: Email Address: Multiple-Choice Questions 1. Which of the following is NOT considered a key financial statement? a) Income Statement b) Balance Sheet c) Forecasted Expense Statement d) Cash Flow Statement2. Variance analysis is used to: a) Identify differences between actual and budgeted figures b) Calculate revenue growth c) Prepare tax returns d) Summarize qualitative business performance3. Which accounting principle ensures revenue and expenses are recorded in the correct period? a) Cash Basis Accounting b) Historical Cost Principle c) Accrual Accounting d) Matching Principle4. What is the journal entry for purchasing office supplies on credit? a) Debit Cash, Credit Office Supplies b) Debit Office Supplies, Credit Accounts Payable c) Debit Accounts Receivable, Credit Office Supplies d) Debit Accounts Payable, Credit Office Supplies5. Gross margin is calculated as: a) Net Income / Revenue b) Operating Income / Revenue c) Cost of Goods Sold / Revenue d) (Revenue - COGS) / Revenue6. A balance sheet includes which key components? a) Revenue, Expenses, Net Income b) Assets, Liabilities, Equity c) Operating Profit, EBIT, Net Profit d) COGS, Gross Margin, Operating Income7. What financial metric is best for measuring profitability? a) Revenue b) Net Income Margin c) Cash Flow d) Equity8. What is the primary purpose of financial forecasting? a) Predict future trends b) Analyze past results c) Reduce tax liability d) Meet bank requirements9. Which of the following impacts operating cash flow? a) Depreciation b) Dividends paid c) Loan payments d) Changes in working capital10. Which costing method is best for valuing inventory in a high-inflation environment? a) FIFO b) LIFO c) Weighted Average Cost d) Specific Identification Open-Ended Questions 21. Explain the importance of financial reconciliations in month-end close. 22. Describe a situation where financial reports can improve operational efficiency. 23. What financial metrics would you track to evaluate the effectiveness of a cost-cutting initiative? 24. Using the information from Q6, if operating expenses are $200,000, what is the Net Income and Gross Margin %? 25. What are the key steps in preparing a month-end financial close?