Financial exam prep

Series 86 practice test

2026-2027 exam practice page

6 practice questions

Answers and rationales included. Switch between Exam and Study modes.

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FINRA
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6 questions / 75 min
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Series 86

20 questions on this page 70% passing score 6 question bank
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Question 1 Financial statement analysis

Question 1: Financial statement analysis

On the income statement, gross profit is calculated as:

Question 2 Equity valuation - discounted cash flow

Question 2: Equity valuation - discounted cash flow

In a discounted cash flow valuation, the terminal value represents the:

Question 3 Securities analysis - price multiples

Question 3: Securities analysis - price multiples

A company has a current share price of 40 dollars and trailing earnings per share of 2.50 dollars. What is its trailing price-to-earnings ratio?

Question 4 Financial statement analysis - ratios

Question 4: Financial statement analysis - ratios

The current ratio is used to assess a company's:

Question 5 Equity valuation - dividend discount model

Question 5: Equity valuation - dividend discount model

Using a constant growth dividend discount model, a stock's value rises if, holding other factors constant, the:

Question 6 Financial statements - cash flow

Question 6: Financial statements - cash flow

On a statement of cash flows, cash paid to repurchase the company's own common stock is classified as a cash flow from:

Question 7 Securities analysis - enterprise value

Question 7: Securities analysis - enterprise value

A company has a market capitalization of 500 million dollars, total debt of 200 million dollars, and cash and cash equivalents of 50 million dollars. What is its enterprise value?

Question 8 Financial statement analysis - inventory

Question 8: Financial statement analysis - inventory

During a period of rising prices, a company that uses the LIFO inventory method, compared with one using FIFO, will generally report:

Question 9 Equity valuation - cost of equity

Question 9: Equity valuation - cost of equity

Using the capital asset pricing model, what is the cost of equity for a stock with a beta of 1.2 when the risk-free rate is 3 percent and the expected market return is 9 percent?

Question 10 Financial statement analysis - leverage

Question 10: Financial statement analysis - leverage

A high debt-to-equity ratio relative to industry peers most likely indicates that a company:

Question 11 Securities analysis - bond features

Question 11: Securities analysis - bond features

A callable bond gives which party the right to take a specified action?

Question 12 Financial statement analysis - profitability

Question 12: Financial statement analysis - profitability

Return on assets (ROA) measures how efficiently a company:

Question 13 Equity valuation - relative valuation

Question 13: Equity valuation - relative valuation

An analyst using comparable company analysis to value a private firm would most appropriately:

Question 14 Financial statements - balance sheet

Question 14: Financial statements - balance sheet

On a classified balance sheet, which of the following is most likely reported as a current asset?

Question 15 Securities analysis - earnings quality

Question 15: Securities analysis - earnings quality

When evaluating the quality of a company's reported earnings, an analyst should be most cautious about earnings that are:

Question 16 Financial statement analysis - DuPont

Question 16: Financial statement analysis - DuPont

In the basic DuPont decomposition, return on equity is the product of net profit margin, asset turnover, and:

Question 17 Equity valuation - free cash flow

Question 17: Equity valuation - free cash flow

Free cash flow to equity is best described as the cash flow available to:

Question 18 Financial statements - revenue recognition

Question 18: Financial statements - revenue recognition

Under standard revenue recognition principles, a company generally recognizes revenue when:

Question 19 Securities analysis - risk

Question 19: Securities analysis - risk

Beta is a measure of a security's:

Question 20 Financial statement analysis - margin analysis

Question 20: Financial statement analysis - margin analysis

A company reports net sales of 1,000,000 dollars and operating income of 150,000 dollars. What is its operating profit margin?

Question 1 of 20

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About this practice test

What this 2026-2027 Series 86 Practice Test covers

Purchase access to the current 6-question practice bank, with exam mode, study mode, answers and rationales. The free sample is separate. Purchase includes the current bank only.

Practice material can include variations on the same concept. It is not an official exam or a guarantee of a passing score. Confirm important facts against current authoritative sources.

Work through up to 50 FINRA-style questions built around suitability, risk tolerance, and the wording patterns students usually miss on the first read.
Use answer-by-answer rationales to learn why the correct option wins and why weaker distractors fail in Financial exam situations.
Review 3 real-world analogies, topic article cards, and source checks after each question so recordkeeping and ethics feel easier to recognize under pressure.
Build timing, confidence, and recall with scenario-based practice that feels closer to the real Series 86 than a generic flashcard dump.

Prepare for the Series 86 with realistic FINRA practice questions, timed review, detailed rationales, and real-world analogies that make harder Financial concepts easier to remember.

This practice test is designed for students and professionals preparing for Series 86 who want stronger exam-day confidence, better explanation quality, and more useful answer review than a generic test bank.

Focus areas include suitability, risk tolerance, recordkeeping, ethics, along with scenario-based judgment, careful review of why distractors are less correct, and real-world analogies that help the key ideas stick.

What you will practice on this page

  • Work through up to 50 FINRA-style questions built around suitability, risk tolerance, and the wording patterns students usually miss on the first read.
  • Use answer-by-answer rationales to learn why the correct option wins and why weaker distractors fail in Financial exam situations.
  • Review 3 real-world analogies, topic article cards, and source checks after each question so recordkeeping and ethics feel easier to recognize under pressure.
  • Build timing, confidence, and recall with scenario-based practice that feels closer to the real Series 86 than a generic flashcard quiz.

How to use this exam to study smarter

  1. Start with the 20-question free sample to spot whether suitability or risk tolerance is slowing you down before you buy the full exam.
  2. After each block, review every rationale and the 3 real-world analogies, topic article cards, and source checks so the tested pattern behind recordkeeping becomes easier to remember.
  3. Retake the full Series 86 practice test in timed mode and focus on cleaner decision-making, not just memorizing the last answer.

Students often land on this page after searching for terms like Series 86 practice test, Series 86 practice questions, Series 86 free practice test, Series 86 study guide, FINRA Series 86 practice test, Series 86 suitability questions. That is why the free sample gives you 10 questions first and the full version goes deeper into the tested patterns.

Frequently asked questions

What does this purchase include?

Purchase access to the current 6-question practice bank, with exam mode, study mode, answers and rationales. The free sample is separate. Purchase includes the current bank only.

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After successful payment, sign in with your checkout account and open the exam from your account. You can use exam mode and study mode with answer rationales.

Is this an official exam or a passing-score guarantee?

No. This is independent practice material. Use current official exam objectives and authoritative references alongside it.

Question-linked study articles

Study articles that support Series 86 prep

These guides come from this exam's question topics. Use them after a missed question to review the concept, answer reasoning, distractors, and sources.

PracticeTestVault review illustration for Ethics on Series 86 Review: Ethics

Question topic: Ethics

Series 86 Review: Ethics

July 16, 2026 2 min read

Review ethics for this Series 86 question with the key prompt clue, correct-answer reasoning, distractor checks, and sources to verify next.

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PracticeTestVault review illustration for Suitability on Series 86 Review: Suitability

Question topic: Suitability

Series 86 Review: Suitability

July 16, 2026 2 min read

Review suitability for this Series 86 question with the key prompt clue, correct-answer reasoning, distractor checks, and sources to verify next.

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PracticeTestVault review illustration for Study strategy on Series 86 Review: Study strategy

Question topic: Study strategy

Series 86 Review: Study strategy

July 16, 2026 2 min read

Review study strategy for this Series 86 question with the key prompt clue, correct-answer reasoning, distractor checks, and sources to verify next.

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