CFI FMVA EXAM A+ GRADE ASSURED COMPLETE SOLUTIONS AND VERIFIED ANSWERS

EXAM

Exam Solution ms




CFI FMVA 2026 A+ GRADE ASSURED COMPLETE SOLUT
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IONS AND VERIFIED ANSWERS (B6E9F)
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QUESTION 1 ms




Term
ANSWER

Definition



QUESTION 2 ms




Income statement accounting ms ms




ANSWER

Accrual - ms



revenues & costs recorded as a business earns or incurs them, not as it receives and pays money It
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includes them in the relevant period's income statement and matches them as closely as possible C
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F makes no difference whatsoever -
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IS where sale happens => How do you decide when sale happens? RECOGNIZE REV UPON DELIVER
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Y OF GOOD/SERVICE PERFORMED
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QUESTION 3 ms




Why are profits and cash flow not the same thing?
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ANSWER

Accounting differences ms




QUESTION 4 ms




CFS Accounting ms




ANSWER

,Only records transactions when cash is received VS IS records ALL revenues earned, whether in cas
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h or accrued
ms ms




QUESTION 5 ms




Cash accounting method
ms ms




ANSWER

record income and expenditures at the time the money changes hands
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QUESTION 6 ms




Accrual Accounting ms




ANSWER

recording in each fiscal period applicable expenses, whether paid or not, and income earned, whethe
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r collected or not.
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QUESTION 7 ms




Accrual Basis Accounting ms ms




ANSWER

reporting income when it is earned and expenses when they are incurred
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QUESTION 8 ms




accrued expenses ms




ANSWER

expenses incurred in one fiscal period but not paid until a later fiscal period
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QUESTION 9 ms




Cash flow from operating activities
ms ms ms ms




ANSWER

The net amount of cash provided from operating activities.
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QUESTION 10 ms




cash flow from financing activities
ms ms ms ms

,ANSWER

The section of the statement of cash flows that reports cash flows from transactions affecting the eq
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uity and debt of the business.
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QUESTION 11 ms




cash flow from investing activities
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ANSWER

The section of the statement of cash flows that reports cash flows from transactions affecting invest
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ments in noncurrent assets.
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QUESTION 12 ms




Contributed surplus ms




ANSWER

Amount paid for shares in excess of their par value
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QUESTION 13 ms




Straightline depreciation ms




ANSWER

Allocates equal amounts of plant assets net cost to depreciation during its useful life.
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QUESTION 14 ms




Accounts Receivable ms




ANSWER

Amounts to be received in the future due to the sale of goods or services
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QUESTION 15 ms




Accounts Payable ms




ANSWER

Amounts to be paid in the future for goods or services already acquired
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QUESTION 16 ms

, Cash Flow Accounting System
ms ms ms




ANSWER

An accounting system entering expenses and revenues only when cash is received or paid out.
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QUESTION 17 ms




authorised share capital ms ms




ANSWER

Maximum number of shares that a company can issue, as specified in the firm's memorandum of ass
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ociation



QUESTION 18 ms




outstanding share capital ms ms




ANSWER

Issued share capital less the par value of shares that are held in the company's treasury.
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QUESTION 19 ms




inventory
ANSWER

the quantity of goods that a firm has on hand
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QUESTION 20 ms




Working Capital ms




ANSWER

current assets - current liabilities
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QUESTION 21 ms




Net Working Capital
ms ms




ANSWER

current assets minus current liabilities
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QUESTION 22 ms