Browse CFA Level 1 Essentials

Chapter 4: Financial Statement Analysis

Chapter 4: Financial Statement Analysis explains the core concepts, key definitions, and practical implications you need for solid analysis. It highlights common pitfalls and the intuition behind the methods so the results are interpreted correctly.

In this section

  • Introduction to Financial Statement Analysis
    Introduction to Financial Statement Analysis: Exam-style multiple-choice practice with detailed explanations to reinforce key definitions, decision steps, and common traps for CFA Level 1.
  • Analyzing Income Statements
    Analyzing Income Statements: Explains Introduction to the Income Statement and Revenue Recognition Under IFRS 15 and ASC 606 with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
  • Analyzing Balance Sheets
    Analyzing Balance Sheets: Explains Classification and Valuation of Intangible Assets and Amortization and Impairment with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
  • Analyzing Statements of Cash Flows I
    Analyzing Statements of Cash Flows I: Explains Linking the Statement of Cash Flows to the Balance Sheet and Income Statement and Operating Activities: A Closer Look with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
  • Analyzing Statements of Cash Flows II
    Analyzing Statements of Cash Flows II: Explains Common-Size Analysis of the Cash Flow Statement and Simple Example with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
  • Analysis of Inventories
    Analysis of Inventories: Explains Why Inventory Analysis Matters and Overview of Common Inventory Costing Methods with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
  • Analysis of Long-Term Assets
    Analysis of Long-Term Assets: Explains Intangible Assets and Property, Plant, and Equipment (PP&E) with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
  • Topics in Long-Term Liabilities and Equity
    Topics in Long-Term Liabilities and Equity: Explains Key Considerations in Lease Accounting and Lease Accounting Under IFRS and US GAAP with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
  • Analysis of Income Taxes
    Analysis of Income Taxes: Explains Why Understanding Income Taxes Matters and Accounting Profit vs. Taxable Income with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
  • Financial Reporting Quality
    Financial Reporting Quality: Exam-style multiple-choice practice with detailed explanations to reinforce key definitions, decision steps, and common traps for CFA Level 1.
  • Financial Analysis Techniques
    Financial Analysis Techniques: Explains Overview of Key Tools and Techniques and Common-Size Analysis with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.
  • Introduction to Financial Statement Modeling
    Introduction to Financial Statement Modeling: Explains Laying the Foundation: Why Pro Forma Statements Matter and Forecasting Revenue: The Starting Point with clear explanations, key formulas, and worked examples, plus practice questions with explanations for CFA Level 1.

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