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Home>Courses>Fundamental Analysis for Traders>Lesson 4 of 9

Reading a balance sheet and cash flow

The snapshot of what a company owns, owes, and is worth to owners.

Fundamental Analysis for Traders·Lesson 4 of 9

All lessons

By the end of this lesson you'll be able to:

  • 01Name the three parts of a balance sheet
  • 02State the balance-sheet equation
  • 03Read basic financial strength
1

Step 1 · Read the guide

Read the guide first

Everything the quiz asks is covered in the linked guide. Read it, then answer the questions below.

How to Read a Balance Sheet: A Guide for Traders
Key terms
Financial RatiosWorking CapitalBook ValueCash Flow Statement

Step 2 · Take the quiz

Quick check

10 questions

Answer all 10, then check. Wrong answers show a hint and a link back to the guide.

  1. Question 01

    What does a balance sheet show?

  2. Question 02

    What is the balance-sheet equation?

  3. Question 03

    What are assets?

  4. Question 04

    What are liabilities?

  5. Question 05

    What is shareholder equity roughly equal to?

  6. Question 06

    What is working capital?

  7. Question 07

    What may a company with far more short-term debt than current assets face?

  8. Question 08

    The balance sheet is a snapshot; what does the income statement cover instead?

  9. Question 09

    What do high cash and low debt on the balance sheet generally signal?

  10. Question 10

    What is book value per share derived from?

Answered 0 of 10 · pass 70% (7/10) to complete

Fundamental Analysis for Traders4 of 9
  1. Fundamental analysis basics
  2. EPS and the P/E ratio
  3. Key financial ratios
  4. →Reading a balance sheet and cash flow
  5. Profitability: margins and EBITDA
  6. Dividends and yield
  7. Inflation and prices
  8. Central banks and interest rates
  9. GDP, jobs, and the economy
  10. ⚑Final Assessment· 20 Q