Free practice test

Financial Analyst Practice Test

Check what you know about the financial analyst job with 15 free questions and instant explanations.

Updated By the Career Education Institute Curriculum Team
About this practice test

15 multiple-choice questions on financial analyst knowledge, safety and vocabulary. Submit to see your score and explanations, or open any question’s answer as you go. Nothing is saved or shared.

Question 1 of 15Variance analysis compares:
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Answer: Actual and planned results. It explains differences from plan.

Question 2 of 15A positive NPV means:
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Answer: The project creates value. Positive NPV adds value.

Question 3 of 15EBITDA excludes:
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Answer: Interest, taxes, depreciation and amortization. It’s earnings before those items.

Question 4 of 15The balance sheet shows:
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Answer: Assets, liabilities and equity. It’s a snapshot of financial position.

Question 5 of 15Keeping inputs separate in a model helps:
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Answer: Update and audit easily. Separation improves clarity.

Question 6 of 15Which term matches this definition: “Estimating what a company or asset is worth.”
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Answer: Valuation. Valuation: Estimating what a company or asset is worth.

Question 7 of 15What does “Forecast” mean?
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Answer: An estimate of future results.. Forecast: An estimate of future results.

Question 8 of 15Which term matches this definition: “Internal rate of return.”
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Answer: IRR. IRR: Internal rate of return.

Question 9 of 15What does “Sensitivity analysis” mean?
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Answer: Testing how results change with assumptions.. Sensitivity analysis: Testing how results change with assumptions.

Question 10 of 15Which term matches this definition: “Financial planning and analysis.”
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Answer: FP&A. FP&A: Financial planning and analysis.

Question 11 of 15What does “Income statement” mean?
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Answer: A report of revenue and expenses.. Income statement: A report of revenue and expenses.

Question 12 of 15Which term matches this definition: “A report of cash coming in and going out.”
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Answer: Cash flow statement. Cash flow statement: A report of cash coming in and going out.

Question 13 of 15What does “NPV” mean?
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Answer: Net present value of future cash flows.. NPV: Net present value of future cash flows.

Question 14 of 15Which term matches this definition: “Key performance indicator.”
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Answer: KPI. KPI: Key performance indicator.

Question 15 of 15What does “Variance analysis” mean?
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Answer: Explaining differences between actual and planned results.. Variance analysis: Explaining differences between actual and planned results.

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