CFI FMVA Final Exam Questions
and Answers | Study Guide |
Grade A+
• Which is not a type of note found in a set of financial statements? CORRECT
ANSWER: Significant internal controls
• What is the correct syntax for the =YEARFRAC function? CORRECT
ANSWER: =YEARFRAC(start_date,end_date,[basis])
• Which of the following is NOT a form of subordinated debt? CORRECT
ANSWER: Revolver
• Which of the following is not a function of public accounting firms? CORRECT
ANSWER: Due dilligence
• Which ratio would you use to determine the profitability of the goods sold by a
company? CORRECT ANSWER: Gross Profit Margin
• Horizontal analysis allows us to analyze performance over: CORRECT
ANSWER: Time
• If a company wanted to finance the purchase of equipment without diluting
shareholders equity, which of the following operation could it consider?
CORRECT ANSWER: Issuing convertible bonds
• When calculating the quick ratio or "acid test" which current asset or liability is
omitted? CORRECT ANSWER: Inventory
, • Using the PEST analysis, which of the following should a company like Apple
Inc. worry about the most? CORRECT ANSWER: Technological forecasting and
trends
• Identify which of the following is NOT a good way for managers to use a budget.
CORRECT ANSWER: Managers can use budgets alone to estimate how well they
perform over a period of time
• Which of the following components is not necessary to have in every master
budget? CORRECT ANSWER: Direct material purchase budget
• What does variable cost with economies of scale mean? CORRECT ANSWER:
The higher the volume of output, the less it costs to produce one extra unit
• Before protecting a worksheet to avoid people from editing the formulas, you
must CORRECT ANSWER: unlock the input cells
• The annual accounts receivable is 3,000; the annual sales 40,000, and the gross
profit margin is 40%.
The receivable days estimated from the data above is _____. CORRECT
ANSWER: 27.4
• The PP&E gross book value at the start of the month is 60,000, and the CAPEX
of the month is 12,000. The accumulated depreciation at the start of the month is
25,000; the depreciation expense of the month is 750. The net book value of PP&E
calculated from the data above is _____. CORRECT ANSWER: 46,250
• Simple interest is important framework to start learning about Time value of
MoneyIf you are going to receive $2,000 in six years from now, how much is that
and Answers | Study Guide |
Grade A+
• Which is not a type of note found in a set of financial statements? CORRECT
ANSWER: Significant internal controls
• What is the correct syntax for the =YEARFRAC function? CORRECT
ANSWER: =YEARFRAC(start_date,end_date,[basis])
• Which of the following is NOT a form of subordinated debt? CORRECT
ANSWER: Revolver
• Which of the following is not a function of public accounting firms? CORRECT
ANSWER: Due dilligence
• Which ratio would you use to determine the profitability of the goods sold by a
company? CORRECT ANSWER: Gross Profit Margin
• Horizontal analysis allows us to analyze performance over: CORRECT
ANSWER: Time
• If a company wanted to finance the purchase of equipment without diluting
shareholders equity, which of the following operation could it consider?
CORRECT ANSWER: Issuing convertible bonds
• When calculating the quick ratio or "acid test" which current asset or liability is
omitted? CORRECT ANSWER: Inventory
, • Using the PEST analysis, which of the following should a company like Apple
Inc. worry about the most? CORRECT ANSWER: Technological forecasting and
trends
• Identify which of the following is NOT a good way for managers to use a budget.
CORRECT ANSWER: Managers can use budgets alone to estimate how well they
perform over a period of time
• Which of the following components is not necessary to have in every master
budget? CORRECT ANSWER: Direct material purchase budget
• What does variable cost with economies of scale mean? CORRECT ANSWER:
The higher the volume of output, the less it costs to produce one extra unit
• Before protecting a worksheet to avoid people from editing the formulas, you
must CORRECT ANSWER: unlock the input cells
• The annual accounts receivable is 3,000; the annual sales 40,000, and the gross
profit margin is 40%.
The receivable days estimated from the data above is _____. CORRECT
ANSWER: 27.4
• The PP&E gross book value at the start of the month is 60,000, and the CAPEX
of the month is 12,000. The accumulated depreciation at the start of the month is
25,000; the depreciation expense of the month is 750. The net book value of PP&E
calculated from the data above is _____. CORRECT ANSWER: 46,250
• Simple interest is important framework to start learning about Time value of
MoneyIf you are going to receive $2,000 in six years from now, how much is that
