CFI FMVA FINAL EXAM 2025/2026
QUESTIONS AND VERIFIED CORRECT
SOLUTIONS || 100% GUARANTEED PASS
<BRAND NEW VERSION>
1. Accounts Receivable - ANSWER ✓ Amounts to be received in the future
due to the sale of goods or services
2. get your point across - ANSWER ✓ make sure the others understand what
you are thinking of
3. Navigation Pane - ANSWER ✓ A tool that appears in the left side of the
window when you select its command in the Show command group.
4. ribbon - ANSWER ✓ A strip of icons that appears across the top of the
PowerPoint window; divided into tabs, each of which contains groups of
related tools.
5. Placeholder - ANSWER ✓ a boxed outline on a slide that can be used to
insert text or an object when clicked
6. polished - ANSWER ✓ shiny as a result of being rubbed
7. rubbed - ANSWER ✓ touched something while moving backwards and
forwards
8. Bereable - ANSWER ✓ able to be endured.
9. gut-wrenching - ANSWER ✓ extremely unpleasant or upsetting
,10.cues - ANSWER ✓ a thing said or done that serves as a signal to an actor or
other performer to enter or to begin their speech or performance.
11.framing - ANSWER ✓ place (a picture or photograph) in a frame.
12.jump in - ANSWER ✓ enter a conversation - "Feel free to jump in at any
moment while we are talking."
13.Accounts Payable - ANSWER ✓ Amounts to be paid in the future for goods
or services already acquired
14.Cash Flow Accounting System - ANSWER ✓ An accounting system
entering expenses and revenues only when cash is received or paid out.
15.authorised share capital - ANSWER ✓ Maximum number of shares that a
company can issue, as specified in the firm's memorandum of association
16.outstanding share capital - ANSWER ✓ Issued share capital less the par
value of shares that are held in the company's treasury.
17.inventory - ANSWER ✓ the quantity of goods that a firm has on hand
18.inventory - ANSWER ✓ a complete list of items such as property, goods in
stock, or the contents of a building.
19.Working Capital - ANSWER ✓ current assets - current liabilities
20.Net Working Capital - ANSWER ✓ current assets minus current liabilities
21.current assets - ANSWER ✓ cash and other assets expected to be exchanged
for cash or consumed within a year
22.Current Liabilities - ANSWER ✓ liabilities due within a short time, usually
within a year
23.Current assets include - ANSWER ✓ cash, marketable securities, accounts
receivable, and inventories
,24.Current liabilities include - ANSWER ✓ notes payable, accounts payable,
unearned revenues, and accrued liabilities such as taxes, salaries and wages,
and interest.
25.Current liabilities include - ANSWER ✓ Accounts Payable
Short-Term Notes Payable
Wages Payable
Taxes Payable
Interest Payable
26.Contingencies - ANSWER ✓ possible outcomes; different plans based on
varying circumstances
27.Unearned Revenue - ANSWER ✓ A liability created when a business
collects cash from customers in advance of providing services or delivering
goods.
28.Common Shares - ANSWER ✓ Represent an ownership interest, a residual
claim on the firm's assets in liquidation, and govern through voting rights No
obligation for firm to pay a dividend; Can proxy their votes to others;
29.Preferred Shares - ANSWER ✓ Shares of stock that entitle owner to a fixed
dividend amount. Dividend must be paid by the company before common
stock owners get paid. Shareholders usually do not have voting rights.
30.Preferred Shares - ANSWER ✓ stock that gives its owners preference in the
payment of dividends and an earlier claim on assets than common
shareholders if the company is forced out of business and its assets are sold
31.deferred income taxes - ANSWER ✓ A liability account to pay income taxes
that have been postponed to a future year's income tax return. In some cases,
this account can also be an asset account representing income taxes to be
saved in a future year's income tax return.
32.What is the Q3 2021 quarterly COGS amount implied by the inventory? -
ANSWER ✓ $12.1 million.
, 33.A real-estate holdings company has the following fixed asset
detail:Buildings: $25.0 Million; Useful Life 20-years.Land: $5.0
Million.Assuming straight-line depreciation, what would the company's total
annual depreciation expense be? - ANSWER ✓ $1.25 million.
34.Having a very successful year, the real-estate holdings company manages to
acquire a new property on July 1, 2021. The company has a fiscal year-end
of July 31. The details on the building and land for the new property are as
follows:BuildingCost basis - $40.0 million.Useful life - 30 years.LandCost
basis - $10.0 million.What would the accounting depreciation expense be for
the fiscal year ended July 31, 2021? - ANSWER ✓ $111 thousand.
35.Recall from the last question that the real-estate holdings company acquired
a new property on July 1, 2021. The company has a fiscal year-end of July
31. The details on the building and land for the new property are as
follows:BuildingCost basis - $40.0 million.Useful life - 30 years.LandCost
basis - $10.0 million.What would the accounting depreciation expense be for
the fiscal year ended July 31, 2022? - ANSWER ✓ $1.33 million.
36.In the below corkscrew, what would be the most optimal formula in cell G8?
- ANSWER ✓ =SUM(G5:G7)
37.Which of the following is critical to understand when putting together an
asset schedule to track the company's tax basis? - ANSWER ✓ The subject
company's relevant tax authority and its rules for depreciation.
38.Why is it important to track a pool of tax losses in a financial model? -
ANSWER ✓ The losses can be applied to future taxable income and reduce
taxes payable.
39.Which of the following statements regarding model review is true? -
ANSWER ✓ Using keyboard shortcuts can greatly expedite a model review.
40.Which of the following tools can help check larger sections of a model
across multiple cells? - ANSWER ✓ Using Excel to locate Constants.
Using Trace Precedents in the Formulas section of the Excel ribbon.
DCF Valuation Modeling
QUESTIONS AND VERIFIED CORRECT
SOLUTIONS || 100% GUARANTEED PASS
<BRAND NEW VERSION>
1. Accounts Receivable - ANSWER ✓ Amounts to be received in the future
due to the sale of goods or services
2. get your point across - ANSWER ✓ make sure the others understand what
you are thinking of
3. Navigation Pane - ANSWER ✓ A tool that appears in the left side of the
window when you select its command in the Show command group.
4. ribbon - ANSWER ✓ A strip of icons that appears across the top of the
PowerPoint window; divided into tabs, each of which contains groups of
related tools.
5. Placeholder - ANSWER ✓ a boxed outline on a slide that can be used to
insert text or an object when clicked
6. polished - ANSWER ✓ shiny as a result of being rubbed
7. rubbed - ANSWER ✓ touched something while moving backwards and
forwards
8. Bereable - ANSWER ✓ able to be endured.
9. gut-wrenching - ANSWER ✓ extremely unpleasant or upsetting
,10.cues - ANSWER ✓ a thing said or done that serves as a signal to an actor or
other performer to enter or to begin their speech or performance.
11.framing - ANSWER ✓ place (a picture or photograph) in a frame.
12.jump in - ANSWER ✓ enter a conversation - "Feel free to jump in at any
moment while we are talking."
13.Accounts Payable - ANSWER ✓ Amounts to be paid in the future for goods
or services already acquired
14.Cash Flow Accounting System - ANSWER ✓ An accounting system
entering expenses and revenues only when cash is received or paid out.
15.authorised share capital - ANSWER ✓ Maximum number of shares that a
company can issue, as specified in the firm's memorandum of association
16.outstanding share capital - ANSWER ✓ Issued share capital less the par
value of shares that are held in the company's treasury.
17.inventory - ANSWER ✓ the quantity of goods that a firm has on hand
18.inventory - ANSWER ✓ a complete list of items such as property, goods in
stock, or the contents of a building.
19.Working Capital - ANSWER ✓ current assets - current liabilities
20.Net Working Capital - ANSWER ✓ current assets minus current liabilities
21.current assets - ANSWER ✓ cash and other assets expected to be exchanged
for cash or consumed within a year
22.Current Liabilities - ANSWER ✓ liabilities due within a short time, usually
within a year
23.Current assets include - ANSWER ✓ cash, marketable securities, accounts
receivable, and inventories
,24.Current liabilities include - ANSWER ✓ notes payable, accounts payable,
unearned revenues, and accrued liabilities such as taxes, salaries and wages,
and interest.
25.Current liabilities include - ANSWER ✓ Accounts Payable
Short-Term Notes Payable
Wages Payable
Taxes Payable
Interest Payable
26.Contingencies - ANSWER ✓ possible outcomes; different plans based on
varying circumstances
27.Unearned Revenue - ANSWER ✓ A liability created when a business
collects cash from customers in advance of providing services or delivering
goods.
28.Common Shares - ANSWER ✓ Represent an ownership interest, a residual
claim on the firm's assets in liquidation, and govern through voting rights No
obligation for firm to pay a dividend; Can proxy their votes to others;
29.Preferred Shares - ANSWER ✓ Shares of stock that entitle owner to a fixed
dividend amount. Dividend must be paid by the company before common
stock owners get paid. Shareholders usually do not have voting rights.
30.Preferred Shares - ANSWER ✓ stock that gives its owners preference in the
payment of dividends and an earlier claim on assets than common
shareholders if the company is forced out of business and its assets are sold
31.deferred income taxes - ANSWER ✓ A liability account to pay income taxes
that have been postponed to a future year's income tax return. In some cases,
this account can also be an asset account representing income taxes to be
saved in a future year's income tax return.
32.What is the Q3 2021 quarterly COGS amount implied by the inventory? -
ANSWER ✓ $12.1 million.
, 33.A real-estate holdings company has the following fixed asset
detail:Buildings: $25.0 Million; Useful Life 20-years.Land: $5.0
Million.Assuming straight-line depreciation, what would the company's total
annual depreciation expense be? - ANSWER ✓ $1.25 million.
34.Having a very successful year, the real-estate holdings company manages to
acquire a new property on July 1, 2021. The company has a fiscal year-end
of July 31. The details on the building and land for the new property are as
follows:BuildingCost basis - $40.0 million.Useful life - 30 years.LandCost
basis - $10.0 million.What would the accounting depreciation expense be for
the fiscal year ended July 31, 2021? - ANSWER ✓ $111 thousand.
35.Recall from the last question that the real-estate holdings company acquired
a new property on July 1, 2021. The company has a fiscal year-end of July
31. The details on the building and land for the new property are as
follows:BuildingCost basis - $40.0 million.Useful life - 30 years.LandCost
basis - $10.0 million.What would the accounting depreciation expense be for
the fiscal year ended July 31, 2022? - ANSWER ✓ $1.33 million.
36.In the below corkscrew, what would be the most optimal formula in cell G8?
- ANSWER ✓ =SUM(G5:G7)
37.Which of the following is critical to understand when putting together an
asset schedule to track the company's tax basis? - ANSWER ✓ The subject
company's relevant tax authority and its rules for depreciation.
38.Why is it important to track a pool of tax losses in a financial model? -
ANSWER ✓ The losses can be applied to future taxable income and reduce
taxes payable.
39.Which of the following statements regarding model review is true? -
ANSWER ✓ Using keyboard shortcuts can greatly expedite a model review.
40.Which of the following tools can help check larger sections of a model
across multiple cells? - ANSWER ✓ Using Excel to locate Constants.
Using Trace Precedents in the Formulas section of the Excel ribbon.
DCF Valuation Modeling
