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Guide
How to Practice Three-Statement Questions: Interactive IB Puzzles
The fastest way to master three-statement questions is to move the numbers yourself: place every change on the income statement, cash flow statement and balance sheet, and see if it balances. Interactive puzzles do that for every common transaction, plus EV bridges and DCF builds.
Why reading answers is not enough
"Depreciation goes up by $10, walk me through the statements" is one of the most common technical questions, and one of the most commonly fumbled. Candidates who have read the answer a dozen times still freeze, because recognizing an answer is different from producing it. You need to have done the mechanics, not just seen them.
How the puzzles work
Each puzzle gives you a transaction and the line items it touches. You drag every dollar change onto the right line across the three statements. The puzzle checks your work, shows what you missed, and confirms the balance sheet balances. A tax rate setting lets you practice with and without taxes.
| Puzzle set | What it covers | Puzzles |
|---|
| Three-Statement Flow | Cash expenses, revenue recognition, depreciation, capex vs expense, inventory, payables, gains and losses, financing, deferred taxes, multi-step chains | 88 |
| Valuation | EV bridges, treasury stock method waterfalls, full chained calculations | 16 |
| DCF | Unlevered and levered FCF builds, WACC, levering and unlevering beta, a full DCF | 10 |
A routine that works
- Start with the basics: cash expenses and depreciation until you can do them without thinking.
- Add one category a day and redo anything you missed the next day.
- Then say it out loud: answer the same transaction as an interview question in practice mode, where it is graded on how well you explain it.
Free accounts get the first puzzle in every category, 18 in total. Pro and the Recruiting Pass unlock all 114.
Frequently asked questions
How do you walk through the three financial statements?
Start with the income statement change and its tax effect, flow net income into cash from operations and adjust for non-cash items, then show how cash and the related balance sheet lines change so both sides balance.
What is the best way to practice three-statement questions?
Do the mechanics yourself for many different transactions until the pattern is automatic, then practice explaining them out loud.
Do the puzzles include taxes?
Yes. You can set the tax rate, including 0%, to practice both versions of each question.
Are there puzzles for valuation and DCF too?
Yes. There are EV bridge, treasury stock method and chained calculation puzzles, plus DCF builds covering free cash flow, WACC and beta.
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