The first section of the exam is really quite simple and it just requires you to read through some financial statements. You need to look at the income statement, balance sheet, profit and loss statement of Cash Flows. Again these questions are straightforward and it does not require any complex analysis skills to do this so your results will be fairly average.
The second part of the exam is more difficult. This is where the skills you learnt in the previous part become really tested. You will be asked to perform a complex series of calculations and you must demonstrate your skills here too. Some questions on this section will ask you to not only produce an income statement but also a balance sheet and statement of cash flows. This section could potentially leave you exhausted if you do not fully understand what you are performing.
As well as the two sections above, you will also be asked some simple questions that relate to your specific area of knowledge. These questions will help you assess whether you understand the concepts being taught or whether you need more help. They should not be too difficult and I found that most students managed to breeze through them. The format of the questions was designed so that the main topics were covered. That means that if you have a limited knowledge of the financial markets then you should not have too many problems with these questions. I did have a few difficult ones but I managed to breeze through them all without getting too confused.
As mentioned above, the key to answering the financial statements is to be able to read them. A good way to achieve this is by practising. It is important that you try to complete each question in the correct manner. In order to do this you must have some practice questions in hand so that when you start your exam you will be prepared to answer the questions as if you were taking the exam for real. This will make answering the financial statements much easier. So how do you practice your financial analysis skills?
There are many online resources where you can take my financial analysis and media queries and answers. One of the best websites I found for doing this is Quicken Online. Not only does this website give you practice questions but they also have a help center where you can find answers to common financial statements. The Quicken website is free, so take advantage of it. The website also gives you an option to download your financial statements which you can then print out at home.
If you do not want to print out your financial statements you can also take a virtual tour of financial statements and information. All you need is access to the internet. You can access financial analysis and media quizzes from websites like Quicken, Bank of America and others. They are all free and give you the opportunity to learn about financial statements and what you will find on the financial market.
It is up to you to learn about the markets. You do not need to rely on a financial advisor or stockbroker to do this for you. It is very simple to learn and take a quiz that will show you how simple it is to do your own financial analysis. So take a little action today and start learning about Quicken and other financial analysis websites.