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If you could analyze only one type of financial statement for your clients, which financial statement would you choose?
Advice
The interviewer is looking for your personal preference. Technically is no right or wrong answer; however, be sure to think about the job description. You should recall if there was an expressed preference on the type(s) of financial statements they want you to be well versed in. Once you state your preference, explain why you chose that particular statement over the others. Choose from the four main types of financial statements: - Balance Sheets - Income Statements - Statement of Cash Flows - Statement of Changes in Equity
Answer examples
"From a logic standpoint, the Statement of Cash Flows makes the most sense if you had to choose just one financial statement type to analyze. The cash flow statement would tell me the ins and outs of cash movement, current liabilities, investments, and operating needs."

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User-Submitted Answers

If you could analyze only one type of financial statement for your clients, which financial statement would you choose?
1.
I would choose balance sheet as it will provide presice overview of all a/c balances.
2.
Cash flow statement.
3.
By using the CFS, you get the most accurate D and A numbers.
4.
Statement of Cash Flows.
5.
Statement of Cash Flows. The operations section converts the Income Statement from accrual to cash and will give you some of the information from the Balance Sheet to have an idea regarding the current (and other liquidity) ratios.
6.
Its a formal record of financial activities.
7.
Current Financial statement.
8.
Profit and Loss Statement.
9.
I choose which I have that time.
10.
What is your expectation.
11.
Income statement and cash flow.
12.
Cash flow statement because you get a real overview of how the company can manage to pay for it's operations and future growth.
13.
I have taken as a base and forecast for the next years.
14.
I have only one statement so there is no choice for me to choose any one.
15.
Income statement and other comprehensive income.
16.
I would choose the Cash flow statement as it provide more meaningful information regarding the financial health of the company by tracking the inflow and outflow of cash as oppose to income statement which may have non-cash expenses such as depreciation that could result in a loss but in reality the company has made profit.
17.
Profit and Loss statement.
18.
Cash flow statement because it has three sections operation, investment & finance. The sections cover accrual cash flow, it shows current liquidity ratios and companies long term investments and also shows how company uses its finance regarding stocks or bonds.
19.
Cash flow statement because it has three sections operation, investment & finance. The sections cover accrual cash flow, it shows current liquidity ratios and companies long term investments and also shows how company uses its finance regarding stocks or bonds.
20.
You have a conflict when there is a difference of opinion. Will find out the cause for the difference and resolve.
21.
What processes do you use to create reports?
22.
I would choose CFS it explains how the company earned and expended.
23.
Balance sheet and income statement.
24.
It would be the income statement. Based on net sales, I can get a good estimate of the size of the company. I can also see whether the company is generating a profit or loss. Also, I can formulate ratios like acid test and net income to sales ratio.
25.
Cash Flow Statement because it tells you how readily you can meet company's debt & interest payments. It also states Investors how much cash a company has to generate for future growth.
26.
A Summary of all assets and liabilities.
27.
Satement of cash & flows.
28.
Statement of cash flows. Because it would tell me the operating, investing, and financing needs of the company from the most recent period.
29.
I would use the statement of comprehensive income, as this would show both income and expenditure, which can be looked at in more detail.
30.
Accounts Payable, Accounts Receivable, reco's, or preperation of MIS.
31.
How you create plan transfer?
32.
Profit and loss statement.
33.
I can choose cash flow statement.
34.
The best financial statement is the Statement of Cash Flows.
35.
Not aware of Financial statement that you are taking about here.
36.
Annual Report of the company.
37.
I will be choosing balance sheet as my financial statement to analysis current liabilities and current assets as well as we can check financial position as on particular day.
38.
Statement of Financial Position.
39.
I would like to make 1 or 2 more copies and I will keep that as a back up resource.
40.
I would like to keep 1or 2 more backup support with me and use original in use.
41.
The current financial statement.
42.
Financial statements only.
43.
The one which has been audited. If not, I will choose the FS which shows a true picture.
44.
I would choose cash flow statement as it shows cash inflow and outflow of the business. Its predict the company 's ability to bring more money than to pay out.
45.
Profit and loss Statement.
46.
Profit and Loss - it enables you to look at revenue and if broken down key revenue drivers in the business. As well as this, showing the expenses can help you to forecast accurately based on prior as well as identify areas to reduce expenditure.
47.
Be accountable and transparent.
48.
Income statement. I want to see a period of time of sales.
49.
I would choose the P&L statement because I am very versed in working with Revenue.
50.
Profit and loss statement.
51.
Profit and Loss Statement.